Difference between Emerging Market Multinational and Multinational Corporation

International Business 1
International Business

International Business 2
Introduction
The emerging market (EMs) is the term which was developed by the International Finance
Corporation (IFC) in 1981 in order to improve the stock markets. This term is taken into
consideration by a number of organizations that works on an international level. EMMs covers
major three variables that are used in the company to identify the emerging markets. These
variables are the pace of economic growth, population standard of living and economic policies
that are adopted by the government to handle the growth of the economy and develop the living
conditions of its citizen. With respect to MNC or Multinational Corporation, it is the corporate
company that handles as well as maintain the services related to the products in specific one
country. The main aim of this essay is to elaborate the difference between emerging market
multinational and Multinational Corporation. The discussion will be made on FSA and CSA to
the motives of EMM and MNC and the outcome of these motives on the internationalization
processes will be mentioned in the essay.

International Business 3
1. Relation of FSAs and CSAs to the Motives of Multinational for Expansion
The term CSAs stands for Country-Specific Advantages and FSAs stands for Firm-Specific
Advantages. The control over the process of the organization could be analyzed and elaborated
through the headquarters of the company and by its ownership controls. The country-specific
advantage comes mostly from two factors of institutional factor and endowment factor. To
increase competitive advantages, it is required by the company to focus on driving forces such as
institution, environment, and specific resources. It is required for the companies that run their
business in complex and perfect complex home market because they must have the unique ability
because they have effective benefits compared to companies that run in the host country
(Aizenman, Binici & Hutchison, 2014). It has been analyzed that there are a plenty of emerging
marketing multinationals and the sub division of the emerging market are defined below:
Resource seeking EMM: It is a vital part of the emerging marketing multinationals that ensure
the respective foreign economic activities of the resource seeking to entail the cheaper resources
for the purpose of being motivated.
Market-seeking EMM: this part has a significant impact on the performance of the company.
There are a plenty of factors that affect the expansion of the company and these are government
regulations which increase the demand of the local products.
Strategic asset seeking EMM: it is another part of the EMMs that describes a plenty of forms
use the overseas investments by considering them as a major tool for fulfilling the objectives of
the company, which are not found in the home markets.
In contrast, the multinational corporations or MNCs are considerably sub separated into three
major types: