Emerging Market Multinational Enterprises and Their International Strategies

This report analyzes emerging market multinational enterprises and their international strategies, with a focus on Haier of China. It discusses the reasons for internationalization, approaches to internationalization, and implications of the process. The report also highlights the importance of cross-border mergers and acquisitions in the emerging market multinational enterprise internationalization strategies. Subject: International Business, Course Code: N/A, Course Name: N/A, College/University: N/A

International Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Critically analyse the emerging market multinational enterprises and their international
strategies......................................................................................................................................3
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International business can be defined as technology trade, services, goods, knowledge or
capital which is across the border of national level at the transnational or global scale. It
basically includes the transactions of goods and services of cross border among different number
of countries. There are certain transactions of economic resources which include capital, people
and skills for the main cause of goods and services production(Buckley and Casson., 2019).
There are certain examples of international business which include Amazon, Citi group and Coca
Cola etc. To conduct the business on the overseas level, there are multinational companies which
needs to bridge separate markets at national level into one global market place. In the present
report, an emerging multinational enterprise is taken into consideration which is named as Haier
of China country. The report basically consist of the analysis of emerging market multinational
enterprises and the internationalisation strategies. The report also consist of the application of
key theoretical arguments in the particular emerging market multinational enterprise.
MAIN BODY
Critically analyse the emerging market multinational enterprises and their international strategies
An emerging multinational market enterprise refers to the economy which is transitioning
into a developed economy. These are the market economies which is basically featured as the
unified stock market, currency and banking system as well and they are into the process of
industrialising. It can offer returns on the greater level to investors due to their growth on the
rapid basis. Firms get internationalise when their regional organisation have their set up shop in
the foreign shape which is simply through partnership, assimilating the idea of acquisition and
creating the subsidiaries in the foreign location(Buckley and et.al., 2018). They are basically
headquartered into regional markets and in the location where they get originated. Multinational
enterprises interact with the small and local producers directly which combines the markets.
Their job lead towards the goods and investments being traded which contributes inter
connections between different nations. There are different causes due to which enterprises of
multinational level get internationalise where the existence in international marketplace act as the
essential growth instrument for organization particularly into the case of constricted away
market. It may happen due to deficiency of domestic need when industry is to narrow and
market is too small as well.

There are certain approaches to internationalisation which include compile time
internationalisation, link time internationalisation and run time internationalisation. Compile
time internationalisation uses the properties into the standard form files to shop translated section
and parametrised communication. These are the property files which are agglomerate straight in
the request. The main goal of linkage period of time internationalisation is that to extract all the
language and culture interdependent message(Burritt and et.al., 2020). Run time
internationalisation also plays a very significant role in terms of getting internalised into fast
pace manner. These are the main approaches which has been used by the organisation within
this international market. According to the changing period of time, it has been observed that
there are certain multinational enterprises which has emerged into this international market. As
these enterprises act as good role in terms of economic development and growth. It has been
observed that these enterprises can't contribute from the longer perspective within the market
because every body is not ready with this new kind of change and also the market is not ready to
accept these changes and introduction of new products and services.
There are certain reasons for cross border acquisition and mergers where it has
significance in the emerging market multinational enterprises internationalisation strategies.
These mergers and acquisitions help these multinational enterprises in terms of understanding the
main requirement of the market and support for future actions because they are already prevailed
into the market. There are certain implications of this internationalisation process due to which
company start growing on a very fast pace manner with the right kind of approach. According to
this implication, company start focusing on giving something unique into the market and also
performs into out of box manner with innovation factor(Dillon and et.al., 2020). The firm
performance also start enhancing with the innovation factor due to which they can perform into
out of box manner. For instance, Haier Group Corporation is a consumer electronics at
multinational level from the china country and company of home appliances which is based in
Qingdao, Shandong. This is a company where focus is on maintaining and building the brand
image due to which they can attract customers on a larger scale. This emerging multinational
enterprise which is named as Haier has the ability to shift the perception from “Chinese
manufactured to US made”. Haier has also the ability to able to spread out their share of market
as the company's products was not regarded as the low price and low quality as well.

While doing business at the international level, it is basically the first approach which has
been used in most business which has been taken with the global expansion. There are certain
four main international strategies which include the international, multi domestic, global and
transnational as well. These are the strategies which depends on the two pressures which include
emphasising on the low cost and efficiency as well and also respond to the local culture and
needs as well(Hamilton and Webster., 2018). As these strategies are very helpful for the
multinational companies but it can't be consistent from the longer perspective. So its very
important that to properly analyse the market so that strategies can be applied into successful
terms at the international level. As the strategies at international level have to face lots of
challenges due to which it is not easier to implement it into legalised form and make a good
relationship with the government.
From the perspective of emerging market, there are different number of counties which
has been included into this category. It includes Argentina, Chile, Brazil, Colombia, China,
Hungary,Egypt, Indonesia, India, Malaysia, Iran, Philippines, Mexico, Russia, Poland, South
Africa, Saudi Arabia, Turkey , Thailand and United Arab Emirates. In context to India country, it
has been observed that there is Sulzer Ltd company which is a global leader in fluid engineering.
It is a Swiss manufacturing firm and Industrial engineering which is a traded publicly
organisation which has about 180 manufacturing facilities and service centres on the world wide
basis. It is the company which is specialised in agitation, pumping, mixing, separation and
purification technologies for all the kinds of fluids. It is the company which provides the brand-
new instrumentality for big substructure across different marketplace among others effluent,
energy, renewable, chemic and industrialized process.
As it is the company which help in terms of country's growth and development as well.
Engineering basically plays a very important role into context of development of the country's
economy and supporting the growth as well(Petricevic and Teece., 2019). It help in terms of
enhancing the life quality for for residents so it has significant link between the economic
development and country's engineering capacity its as well.

Fluid engineering is important because as it contribute into context of understanding the
behaviour of fluids under different forces and into the different atmospheric conditions and to
select the right kind of fluid for various applications(Srivastava and et.al., 2020). The
engineering of fluids help in terms of creation, improvement and protection of the communal
environment as well. It also provides facilities for industry and transportation due to which it
indirectly contribute for the country development and growth as well. As it is the company which
act as support system in terms of providing employment on a larger scale. It also contribute in
terms of providing new technologies which spills over the domestic firms and also these
multinational companies benefit from government subsidies. It can be further be used in the
future to be linked to investment into local firms. These multinational companies into the
emerging market act as parameter where it act as significant experience in terms of building
demand which has difficult conditions in their home markets. As these multinational companies
brings lots of opportunities and benefits into the emerging market but it somewhere it has
negative points as well.
It has been observed that the emerging markets are very unstable, volatile and also it is
not easy to deal with the government. Political unrest can also cause serious consequences to the
investors and economy as well. Sometimes they have to face insufficiency in terms of raw
materials and labour as well. It also have to face challenges in terms of high inflation or deflation
rate, unregulated markets and unsound monetary policies. There are different kinds of risks
which multinational companies have to face in order to deal in the emerging markets(Van Zanten
and Van Tulder., 2018). The risks basically include transactional risks, income risks from
financing, income risks from operation and accounting risks due to fluctuations in the rate of
exchange of the local currency. These multinational enterprises have to face different kinds of
risks such as inflation risks, political risks, bank instability and legal risks in these emerging
markets.
So in the overall manner, it has been observed that these emerging multinational
enterprise have their own significance at the international level. There is a process which needs
to be followed by emerging market multinational enterprises so that they can properly stablish
themselves into positive manner. There are certain kind of reasons due to which the company
needs to internationalise themselves so that they can grow themselves into result oriented form.

There are certain kind of approaches to internationalisation which needs to be considered
into serious manner so that further actions can be taken accordingly for it. As these are the
emerging multinational enterprises so they have different kind of approaches towards the
strategy formulation (Welch and Welch., 2018).So these enterprises have different views to see
the market into result oriented form with the right kind of approach. It has been observed that
cross border mergers and acquisitions role is very important in the emerging market
multinational enterprises internationalisation strategies. There are certain implications of this
internationalisation process which needs to be considered from the perspective of future further
actions of the company. So at the international level, it is not very easy to do the business
specially for those who are emerging multinational enterprises. As the international business
need lots of research and analysis in order to enter into the new market but awareness regarding
the market and touch with current trends makes it easier to do the business on the international
level. Without having proper analysis it is very difficult to sustain into this new market and also
it is necessary that to have proper planning for every further step into result oriented terms.
That's why international business is a proper result of proper analysis and evaluation as well.
CONCLUSION
It has been concluded that international business plays a very important role in this
international market. There is emerging market multinational enterprises have their own
significance in this international market. It has ben determined that these enterprises have
contributed on a larger scale for development and growth of the organisation into positive
manner. It has been observed that within this international market it is important to use the
strategies into smarter terms so that further decisions can be taken accordingly for it. These
strategies act as support system in terms of achieving success on a larger scale. There are certain
reasons due to which multinational enterprise wants to contribute themselves within the economy
on a larger scale. So in the overall manner it has been observed that international business is very
important so that they can grow their business on a higher scale with the right kind of approach.

REFERENCES
Books and Journals
Buckley, P. and Casson, M., 2019. Decision-making in international business. Journal of
International Business Studies, 50(8), pp.1424-1439.
Buckley and et.al., 2018. International business. Oxford University Press.
Burritt and et.al., 2020. Multinational enterprise strategies for addressing sustainability: The need
for consolidation. Journal of Business Ethics, 164(2), pp.389-410.
Dillon and et.al., 2020. Digitally immersive, international entrepreneurial
experiences. International Business Review, 29(6), p.101739.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Petricevic, O. and Teece, D. J., 2019. The structural reshaping of globalization: Implications for
strategic sectors, profiting from innovation, and the multinational enterprise. Journal of
International Business Studies, 50(9), pp.1487-1512.
Srivastava and et.al., 2020. Culture and International business research: A review and research
agenda. International Business Review, 29(4), p.101709.
Van Zanten, J. A. and Van Tulder, R., 2018. Multinational enterprises and the Sustainable
Development Goals: An institutional approach to corporate engagement. Journal of
International Business Policy, 1(3), pp.208-233.
Welch, D. E. and Welch, L. S., 2018. Developing multilingual capacity: A challenge for the
multinational enterprise. Journal of Management, 44(3), pp.854-869.