3. Doing Business in Emerging and Developing Markets

Question 1

Multinational Enterprises Defintion (MNE)

Answer 1

A multinational enterprise or corporation is a
company that has business operations in at least one
country other than its home country.

Question 2

What does DMNEs stands for?

Answer 2

Multinational Enterprises from developed countries

Question 3

What does EMNEs stands for?

Answer 3

Multinational Enterprises from emerging markets

Question 4

Challenges in emerging markets

Answer 4

• Political and Economic Risks
• Legal and Regulatory Hurdles
• Cultural and social barriers

Question 5

EMNEs can fill capability holes like:

Answer 5

Technology and innovation
Brand and marketing
Managing international operations

Question 6

How EMNEs fight back

Answer 6

• Establishing a beachhead by exporting something
  good enough and then raising quality, perception,
  and price.
• Follow the Diaspora.
• Acquisitions
• Overcome institución-based barriers

Question 7

Why do firms from emerging economies often pay higher premiums for targets in developed economies?

Answer 7

• Externally: a number of stakeholders in the target economy can jeoperdize the deal.
• Internally: target firms managers and shareholders need to be convinced that. EMNEs are the most suitable acquirers.
• To soften resistance, EMNEs tend to offer lucrative deals. and allow significant. autonomy to target firm.

Question 8

Leading business in
conflict zones: Risk-Return?

Answer 8

At higher risk, higher
reward market

Question 9

Business in context of conflict

Answer 9

• International human rights standards for business that provide clear guidance
• Human rights due diligence must be conducted regularly.
• Ensure that business is a force for good