logo

Asia Pacific Multinationals in Europe | Case Study

   

Added on  2019-11-20

17 Pages3573 Words244 Views
Running head: ASIA PACIFIC MULTINATIONALS IN EUROPEAsia Pacific Multinationals in EuropeName of the Student:Name of the University:Author Note:

2ASIA PACIFIC MULTINATIONALS IN EUROPETable of ContentsIntroduction......................................................................................................................................2Case Study 1....................................................................................................................................3Dunning’s Eclectic Paradigm..........................................................................................................3Theoretical implications..............................................................................................................3Background of Toyota Motor Corporation..................................................................................3Rise of Japanese Automobile Multinationals..............................................................................4OLI Advantages- Production and Management by using Toyota Motor Corporation................4Ownership advantage (Firm specific advantages)...................................................................4Location advantage (Country specific advantages).................................................................5Internalization advantage.........................................................................................................5Case 2...............................................................................................................................................6Background of Huawei................................................................................................................6The catch up of Chinese telecommunication Multinationals......................................................7Huawei’s Matthews LLL.............................................................................................................9Linkage..................................................................................................................................10Leverage................................................................................................................................10Learning.................................................................................................................................11Discussion and Conclusion............................................................................................................12

3ASIA PACIFIC MULTINATIONALS IN EUROPEReference List................................................................................................................................14IntroductionFrom past 30 years, the world went through a cardinal shift in the involvement of ForeignDirect Investment as well as offshore actions (Varma 2013). After the rise of East Asia’sMultinational Enterprises, the concept of experiential learning as well as absorption oftechnologies came into existence. Globalization is one of the expanding concepts that meanincreasing opportunities for business firms and systems in and across the world. To that, theAsia-Pacific benefits largely from the global markets as well as patterns of developmentactivities that took opportunity to invest and internationalize in foreign markets (Budhwar,Varma and Patel 2016). The present study explains the role of developing countries in AsiaPacific region that had made possible to involve international multinationals. It is important tounderstand the patterns of Foreign Direct Investment within the Asia Pacific region that hasmanaged to attain impressive increase in the last 30 years that explain the achievement of theAsian Multinationals as one of the largest players in and across the world. The current paper seekto clarify the rise and growing roles of Asia Pacific Multinationals in the worldwide financialsystem where Japanese automobiles and Chinese telecommunication industries further act asdistinct validations towards the argument. Less economically developed countries experiencesincreased outward foreign direct investment starting from 1980 in industries like service,manufacturing and high technology (Restuccia et al. 2016).

4ASIA PACIFIC MULTINATIONALS IN EUROPECase Study 1This case study compares two companies that are from same industry but different country. Here,Toyota Motor Corporation is compared with Hyundai where Toyota is a Japanese multinationalcorporation and Hyundai is South Korean Multinational Corporation. These two companies willbe explained well by using Dunning’s Eclectic Paradigm with the study of Foreign DirectInvestment (Nguyen 2014). Dunning’s Eclectic Paradigm Theoretical implications The eclectic paradigm was initially suggested by John Dunning when he considered the frontierof internalization studies that it encompasses several existing theories into one single approach(Nguyen and Rugman 2015). According to Dunning, decision of business firms is to take part ininternational activities through outward Foreign Direct Investment that is linked with three inter-linked advantages such as Ownership advantages, Location advantages and Internalizationadvantage. Background of Toyota Motor Corporation Toyota Motor Corporation is one of the Japanese multinational automobile manufacturers thatare based in Japan (Toyota.com. 2017). The corporate structure of Toyota Motor Corporationconsists of 338875 employees in and across the world and occupies 9th position in terms ofrevenue. Toyota Motor Corporation is the world’s market leader in sales of hybrid electric

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Cross Industry Analysis of Toyota Corporation's Entry into Chinese Market
|13
|3633
|132

Asia Pacific Business Assignment Solution
|12
|3483
|40

API 121 | RISE OF ASIA PACIFIC MULTINATIONALS
|11
|3082
|50

Strategy Management of Ford Motor Company
|10
|3258
|90

Introduction To Global Economic Changes
|15
|2703
|15