1205262 Jeremy Corhay
The Development of MNCs with the case of China
EC0910A
Jeremy Corhay - 1205262
‘THERE
IS NO LONGER ANY SUCH THING AS A PURELY NATIONAL
ECONOMY .
THE
REST OF THE WORLD IS JUST TOO BIG TO IGNORE,
EITHER AS A MARKET OR AS A COMPETITOR . IF BUSINESS SCHOOLS DO
NOTHING OTHER THAN TO TRAIN THEIR STUDENTS TO THINK
INTERNATIONALLY , THEY WOULD HAVE ACCOMPLISHED AN IMPORTANT
TASK.’
JOHN YOUNG, FORMER CEO, HEWLETT-PACKARD
Brief contents
Introduction............................................................................................................................................. 3
What are the methods of going international?....................................................................................... 3
Why invest abroad?................................................................................................................................. 5
The case of China..................................................................................................................................... 6
The Foreign Direct Investments .............................................................................................................. 8
The motives behind the investments .................................................................................................... 10
Conclusion ............................................................................................................................................. 12
References ............................................................................................................................................. 13
2
Introduction
Over the last decades the trade of goods and services across borders has considerably increased. The development of communication and transport has reduced the distances between countries. Nowadays it has become much easier for companies to transfer the infrastructure as well as the goods and services abroad and this, at a lower cost. For example,
EC0910A
Jeremy Corhay - 1205262
‘THERE
IS NO LONGER ANY SUCH THING AS A PURELY NATIONAL
ECONOMY .
THE
REST OF THE WORLD IS JUST TOO BIG TO IGNORE,
EITHER AS A MARKET OR AS A COMPETITOR . IF BUSINESS SCHOOLS DO
NOTHING OTHER THAN TO TRAIN THEIR STUDENTS TO THINK
INTERNATIONALLY , THEY WOULD HAVE ACCOMPLISHED AN IMPORTANT
TASK.’
JOHN YOUNG, FORMER CEO, HEWLETT-PACKARD
Brief contents
Introduction............................................................................................................................................. 3
What are the methods of going international?....................................................................................... 3
Why invest abroad?................................................................................................................................. 5
The case of China..................................................................................................................................... 6
The Foreign Direct Investments .............................................................................................................. 8
The motives behind the investments .................................................................................................... 10
Conclusion ............................................................................................................................................. 12
References ............................................................................................................................................. 13
2
Introduction
Over the last decades the trade of goods and services across borders has considerably increased. The development of communication and transport has reduced the distances between countries. Nowadays it has become much easier for companies to transfer the infrastructure as well as the goods and services abroad and this, at a lower cost. For example,
References: John H.Dunning, Sarianna M.Lundan (2008) Multinational Enterprises and the Global Economy, Second Edition edn Dunning, J.H (1981) International Production and the Multinational Enterprise, London: George Allen and Unwin. Branine, M (2011) Managing Across Cultures: Concepts, Policies and Practices, London: Sage Roy Y J Chua , Michael W Morris and Paul Ingram (2009) 'Guanxi vs networking: Distinctive configurations of affect- and Office of the United States Trade Representative (April, 2009) Special 301 Report World Trade Organization (2013) Available at: http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm (Accessed: 1st March 2013) British Petroleum (2013) BP in the Middle East, Available at: http://www.bp.com/sectiongenericarticle.do?categoryId=9018421&contentId=7034199 (Accessed: 1st March 2013). Jay Yarow - Business Insider (September 20, 2010) Apple Buys Swedish Facial Recognition Company Polar Rose, Available at: http://articles.businessinsider.com/2010-09-20/tech/29955408_1_face-recognition-facial-recognition-technology-socialnetworks (Accessed: 2nd March 2013) National Bureau of Statistics of China (18 January 2013) China 's Economy Achieved a Stabilized and Accelerated (Accessed: 6th May 2013) Krugman, P. Obstfeld, M. Melitz, M. (2010) International Economics Theory & Policy, 9th edn: Prentice Hall. Worldbank (2012) GDP (current US$), Available at: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD BRIC (2013) Joint Statistical Publication, South Africa: The Fifth Summit of the BRICS Countries. Layma Y. (2006) Report on the value of China 's emerging middle class: McKinsey.