Emerging markets multinational enterprises

Emerging market multinational enterprises (EMME) is a key term being discussed by economists and analysts for the past decade. Emerging market multinationals are companies that have been considered rising stars showing up on lists such as S&P 100 and FT Global 500. Based on the Financial Times, “in just two years, from 2006 to 2008, the number of Brazilian, Chinese, Indian and Russian MNEs on the FT Global 500 more than quadrupled from 15 to 62, in September 2010 there were 80. (Lexicon)”

Until a few years ago, multinationals from developed countries were shaping the market we live in, creating opportunities, making acquisitions, expanding and making foreign direct investments in developing markets. The global market was dominated by multinationals from developed economies. These experienced multinationals were investing in FDI’s and were in fact also contributing their knowledge and sharing their experiences with the small-medium enterprises (SME) in emerging economies. Recently, this context has changed with the rise of companies from rapidly developing economies. From what SME’s have learned from these multinational companies and with the contribution of external forces, such as governments, low labor costs, and several others, they have become global key players. Continue reading

How not to lose ground or how the developed world can dodge the sword of Damocles – Part II

EU

Second Part – Way Out

“We have to define that word which good economists always try to avoid: capitalism is that form of private property economy in which innovations are carried out by means of borrowed money” Joseph Schumpeter

As in the previous article the difficulties have been addressed, and we have created hopefully a sense of urgency. We would now like to characterize a possible solution scheme to eventually end the era of Ponzi finance in order to prevail over the economic downward spiral of the developed future world. Various stakeholders will have to prove their willingness to make sacrifices. The day of reckoning will have to be faced, because the underlying issues cannot be ignored any longer.  

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How not to lose ground or how the developed world can dodge the sword of Damocles – Part I

WallStreet

First Part – The Difficulties

“Economic progress, in capital society, means turmoil”
Joseph A. Schumpeter

With genuine sorrow we observe the economic downward spiral of increasingly more European Union States and other developed economies. This article explores the causes and characteristics of the developed world’s grown structural difficulties and proposes steps that every economy must have to take in order to resolve it. Rather than to give recommendations how to alleviate symptoms of the world’s economic slowdown this article aims to define the vital steps towards a sustainable solution, point out the painful dilemmas, which will be faced by the developed world, and constitutes a sense of urgency to rapid action.

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Emerging Market Multinationals – A multi-polar footprint

Emerging-market multinationals (EMMs), which are companies operating in several countries, have during the last decades, attracted substantial attention from western multinationals for their increasing scale on international level. In 2008 the Emerging economies had 70 multinationals in the Fortune Global 500, an increase of 50 from 1998, and an increase of 9 since 2007; clearly demonstrating the pace of the Emerging multinationals. This development has been possible through a high number of mergers and acquisitions, as well as a focus on Capital (Foreign Direct Investments), Talent (workforce), Resources (commodities etc.), new consumers and Innovation.

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Doing Business in Indonesia

Indonesia, as Southeast Asia’s largest economy, has positioned itself as one of the vital area for international trade since 7th century. In the course of the last global financial crisis, Indonesia had not only survived, but also outperformed other ASEAN countries including: Singapore, Malaysia and Thailand with an estimated growth of 6.4% in 2011. IMF ranked Indonesia as the 16th for GDP nominal and 15th for purchasing power parity, amounted to US$845,680 M and US$1,124,649 B respectively. Furthermore, Fitch upgraded sovereign credit rating of Indonesia to investment grade and estimated a 6% growth in 2013 conservatively. On top of the stable economic growth, Indonesia’s economy relies heavily on its domestic market, which is comprised of some 240 million people. Additionally, Indonesia is gifted with vast and diverse natural resources. Continue reading

This Must be Africa

With investment levels surpassing $120 billion last year alone, Chinese companies have been increasing their business activities in Africa over the last decade (see graph below). All in all, their involvements have done more to fight poverty than any other country in the world by speeding up economic growth and producing jobs. However in the past few years, Africans have started contemplating whether there is a hidden agenda underneath all the investments. Are all the investments just modern colonisation? And why are Western businesses not as eager to enter the African markets? This article will uncover some factors that determine why Chinese investors find Africa so much more attractive than their Western counterparts. Continue reading

Singapore Airlines, A Great Way To Fly

The success of an intangible service, relies heavily on its ability to make  an emotional bond with its customers.  Each moment of truth creates an experience that enhances the relationship and brings about loyalty in the customers. Singapore Airlines (SIA), the world’s second largest airline based on market capitalisation, has been successful in delivering an excellent service and in creating an exceptional experience for its customers throughout their journeys.  Continue reading