Rise of Asian MNCs

Especially from Korea, China and Southeast Asia.

Rise of Asian MNCs

Especially from Korea, China and southeast Asia.
Group members:Ranjith 09mbi134 Barani 09mbi012 Sriram. 09mbi060 Shabharishwara. 09mbi117 Vinoth k 09mbi127

How & why Multinationals Start

Role of MNCs from emerging economies

emerging multinationals(EMs) are changing the configuration of global industries According to the United Nations Conference on Trade and Development (UNCTAD),multinationals in emerging economies accounted for only 0.4 percent of world outward foreign direct investment (FDI) in 1970.That share grew to 15.8 percent by 2008.

Rise of MNCs in Asia

Mergers and acquisitions is a common mode of global expansion used by Asian MNCs The outward investment from Asia are lower compared to developed countries but this investment is growing, fuelled largely by inward investment and by the strong growth in their economies Global ambitions are pursued not only by large organizations but companies of all sizes Asias share of global revenues rose from 19 per cent in 2011 to 22 per cent in 2012 Asias projected share of global economy in 2017 is 35%

Rise of MNCs in China

In 1979 economic reforms and opening up to the outside world lead to globalization and rise of MNCs in china. The role played by government The competitive advantage CHINA- FACTORY FOR THE WORLD Internationalization of the Manufacturing Function Haier, tcl.

FOR EXAMPLE: The internationalisation of manufacturing in Haiers refrigerator/freezer division followed three steps: Entry into nearby developing countries (South East Asia);America and Europe. Establishment of a manufacturing plants in North America and Europe; Exploring other developing countries (South Asia, Middle East and Africa).

Rise of MNCs in South Korea

Ranks 15th in the world by nominal GDP and 12th by purchasing

power parity (PPP), identifying it as one of the G-20 major

economies. (capital and research center of South Korea) (APEC, OECD, WTO,G20, Next Eleven Countries).

One of the fastest growing developed countries, along with Hong

Kong, Singapore, and Taiwan. South Korea was the seventh largest exporter and tenth largest importer in the world. 1997 financial crisis and 2008 currency crisis

South Koreans MNC

Samsung Electricals LG Electricals Hyundai Heavy Industry DSME co Ltd Posco Hanwha

Characteristic of Korean MNC

Managers expect that their instructions will be obeyed and this expectation of obedience is usually fulfilled. he Koreans also employ a process of consensus decisionmaking in certain situations, which is similar to the system of nemawashi found in Japan. Seniority Managers are expected to take a holistic interest in their subordinates Women in south Korea

Challenges of MNC in South Korea

Top 20 MNC from South Korea

Rise of MNCs in southeast Asia

Indonesia has liberalized recently

references
http://blogs.ft.com/beyond-brics/2013/01/08/multinationals-off-the-pace-in-asia/#axzz2NZnjSiOg http://www.towerswatson.com/assets/ap/pdf/7932/TowersWatson-Viewpoints-MNC.pdf http://www.capgemini.com/m/en/tl/tl_Emerging_Multinationals__Manufacturing_in_a_Rapidly_Changing_Global_Landsca pe.pdf http://research.stlouisfed.org/publications/regional/10/07/multinational.pdf http://204.3.197.155/ETSG2011/Papers/Klimek.pdf http://www.towerswatson.com/en-AU/Insights/IC-Types/Survey-Research-Results/2012/09/Asian-Trailblazers http://www.utdallas.edu/~mikepeng/documents/ChinaGoesGlobal1101_GSJR2.pdf http://www.vcc.columbia.edu/files/vale/documents/EMGP-Korea-Report-Final-20101116.pdf

 Group members:
Ranjith 09mbi134 rise of mncs in korea
Barani 09mbi012- rise of mncs in china Sriram. 09mbi060 rise of mncs in asia Shabharishwara. 09mbi117 Vinoth k 09mbi127