The Between China And India

2140 Words Jan 12th, 2015 9 Pages
As per definition of Pitelis and Sugden (2000, p.72), Multinationals (MNC’s) are corporations that operate in more than one country. Until recently, multinationals from developed economies had the primary control over the global market. They created opportunities, made acquisitions, made FDI’s in emerging markets. They were also sharing their knowledge and experiences with SME’s in emerging economies. The flows to a great extent were one way, however in the last few years, a considerable two way relationship has developed. The main reasons for the change in the set of circumstance has been due to the emergence of companies from rapidly developing economies, from what SME’s have learned from the knowledge and experience shared by multinationals and the contribution of external forces such as governments and cheap labour.

According to Jain (2006, p.384) the four largest emerging economies are Brazil, Russia, India and China (also known as BRIC) among which China and India are esteemed to have the largest economies. Other noteworthy economies are those of South Korea and Indonesia in Asia, Turkey in Europe, Mexico in North America and South Africa in Africa. According to Accenture (2007), the emergence of emerging economies was driven by contributions in technology, economic openness and expansion strategies.

Firstly, technology by breaking the barriers of time and distance has helped bridge the gap that existed between emerging and developed economies by allowing the latter…
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