Case 11 Mabindra Mabindra B

The offshoring of jobs and infrastructure became a significant factor in global economic development in the mid 20th century (In Encyclopaedia Britannica, 2015).

Currently, economic world are more dynamic. Many developed countries such as European Union, US, and Japan as the largest economic are going to be overtaken by developing countries, particularly BRIC. BRIC stands for Brazil, Russia, India, and China. Those countries are growing rapidly and making contribution to the world economy as Goldman Sachs (2010) said, “Between 2000 and 2008, the BRICs contributed almost 30% to global growth in US Dollar terms, compared with around 16% in the previous decade”. Furthermore, even Goldman Sachs predicted in 2050 the BRIC could account for almost 50% of global equity markets. This essay will compare and evaluate critically economic growth prospect of China and Brazil as two BRIC countries in the context

Emerging markets are growing faster than advanced economies due to increased human capital, better economic framework, and financial markets. Emerging markets companies are directly competing with developed-market firms and reshaping industries in the areas of technology, automobiles, business processing and consulting, and alternative energy. These developments will undoubtedly contribute to shifts in the global investment landscape over many years.

The attractive attributes that emerging markets offer contributing to the strong future growth of investments include growing consumption, low debt levels, and room for productivity gains. First, growing consumption means that emerging economies are focusing more on domestic consumption-led growth rather than importing goods from developed countries. Additionally, emerging economies are also offering relatively low debt levels because their balance sheet are usually safe due to their spending limitations and high saving rates. Last, according to analysts, emerging markets are investing in better infrastructure and technological advances, which could greatly boost sustainable economic growth in those countries. These three attributes are potential factors to be accounted when making an investment (Brisk, T. 2011).

The process of globalization has numerous significant effects on countries, organizations, and individuals. These effects can be observed in the quality of products, in their prices, but also in their availability. Because of globalization, numerous companies prefer to expand their business on international level. Some of them outsource some of their processes and activities to cheaper destinations that allow them to reduce their investments.

The topic of emerging economies has been hot over the past decade or so, most notably the emergence of the group of countries known as the BRICS nations (Brazil, Russia, India, China and South Africa). Growth rates in these economies far exceed that of more developed nations. In 2011-2013, BRICS economies posted average growth rates of 4.11% compared to 1.37% in developed economies (Lukov, 2010). By 2020 all BRICS should be in the top 10 largest economies in the world, and by 2050, they will be the most important economies, relegating America to the 6th largest economy in the world (The BRIC countries: Brazil, Russia, India and China, 2010). I have chosen to concentrate my study upon the Brazilian performance. I have chosen to do so as in

The rise of the corporation follows the path of the rise of Western capitalist society. When industrial societies expanded, the birth of many corporations formed to consolidate power, market share and ultimately, profit. In the last century, the emergence of large multinational corporations (MNC)* has brought both benefits and numerous problems to our global society. The documentary film The Corporation has left an indelible mark on my perception on how globalization has affected poor countries. The film provides a critical review on the rise of MNC and its current corporate practices. The study of multinational corporations have led to the emergence of several academic approaches that question the merits and consequences of globalization.

Mansour Javidan is the Dean of Research, Garvin Distinguished Professor, and Director the Global Mindset Leadership Institute at Thunderbird School of Global Management. His latest HBR article, “Making It Overseas,” was published in April 2010.

Doing business internationally is not the same as doing business locally (Lambert, 2000). There are new, interesting and exciting opportunities that face the management. However, in some cases, there are inevitable challenges. The challenges are more prevalent when it comes to management of risks and keeping the business running (Dally, 2007). To do this effectively, there are significant skills to learn; also it’s necessary to adopt certain strategies and understand the different environments within which the business operates.

About half of the 600 largest MNCs have headquarters in the United States; about a sixth are based in Japan; and about a tenth are in the United Kingdom. In the 1980s and 1990s an increasing number of smaller corporations expanded their production activities abroad. Similarly, an increasing number of MNCs now originate from the newly industrialized and developing areas, including Hong Kong and South Korea. These developments have been aided by technological improvements in transportation, communications, and production processes.

While there are great potentials in exploring new opportunities overseas, there can also be considerable risks associated in doing business in an unfamiliar environment. Companies need a comprehensive approach to assess the benefits and potential pitfalls in going global. Grolsch does so through its MABA (Market Attractiveness, Business Assessment) framework. The MABA, as described in the case, is used by Grolsch’s employees to judge the

is not so. MNEs are not monolithic; in fact, the largest 500 multinationals are spread across the triad economies of NAFTA, the EU, and Japan/Asia. Recent research shows that of these 500, there are 198 headquartered in NAFTA countries, 156 in the EU, and 125 in Japan/Asia.6 Additionally, these triad-based MNEs compete for global market shares and profits across a wide variety of industrial sectors and trade services. And this process of regional competition erodes the possibility of sustainable long-term profits and the possibility of building strong, sustainable political advantage (Rugman, 1996; Rugman and D’Cruz, 2000). A third misunderstanding about globalization is the belief that MNEs develop homogeneous products for the world market and through their efficient production techniques are able to dominate local markets everywhere. In truth, multinationals have to adapt their products for the local market. For example, there is no worldwide, global car. Rather, there are regionally-based American, European, and Japanese factories that are supported by local regional suppliers who provide steel, plastic, paint, and other necessary inputs for producing autos for that

Globalization and technology have generated many changes to the world’s economy as it has opened the doors for businesses all over the world to international markets. This means, expanding their economies by growing their target market areas. Now a day, businesses don’t talk about understanding their local markets, but understanding the global market. Some developing nations have taken advantage of this opportunity to grow their economies and they are working on becoming a global power. International Outsourcing has generated a significant change in the way business is conducted and has most definitely been a key element to the growing global economy. India is a good example of a developing country that has broken

This is brought to you by the decline of trade tariffs, in which corporations are increasingly taking advantage of. They are looking overseas to outsource for cheap foreign labour and new markets. Developing countries openly welcome MNCs to their countries with expectations of employment and economic growth. They try to persuade the MNCs by offering incentives such as tax breaks, government subsidies and lax regulations.

There is a fact that rarely can a firm extend its domestic structure into a global environment.