The Importance Of Globalization In Mnes

1967 Words8 Pages
1. INTRODUCTION Globalization brings multinational enterprises (MNEs), their products and their brands into ever more remote corners of the world. The large number of potential customers in emerging economies raises expectations of unprecedented demand for consumer goods, if only the right products could be delivered in the right places (D. J. Arnold et al 1998).Yet, MNEs encounter business environments in emerging economies that are not only different from those with which they are familiar, but that also vary greatly from each other. In the last 10 to 20 years the term emerging market has become very important in the international business context because countries such as China grew heavily and created new, enormous market segments. Today the Gross domestic product (GDP) per capita figures of the china market exceeds 10 per cent on an annual basis, a business environment characterized with over a billion people (approximately 20 per cent of the global population), Global companies like Coca-Cola, IKEA, Microsoft or Procter & Gamble have already realized the enormous potential and have expanded their business greatly into this markets. The primary focus of this write up is to carefully evaluate the company’s strategic choice in playing the china market due to the huge potentials that exist and the implementation of the right strategy in penetrating the market. 2. LITERATURE REVIEW 2.1 BACKGROUND INFORMATION OF THE COMPANY Reed pharmaceutical is a leading

More about The Importance Of Globalization In Mnes

Open Document