The Growth Of Emerging Markets

1415 WordsDec 8, 20146 Pages
1. Introduction The last decade has seen an increase in internationalisation from emerging market multinationals (EMNCs), through outward foreign direct investment (OFDI). This internationalisation phenomenon, has led to increase interest from researchers in the international business discipline (Cavusgil, 1980; Hoskisson, Eden, Lau, & Wright, 2000; Jormanainen & Koveshnikov, 2012). In 2013, emerging economies invested $553 billion, representing 39% of global OFDI, compared with only 12% at the beginning of the 2000 (UNCTAD, 2014). These trends are consistent across different emerging market sub-regions, as organisations that are aggressively investing are doing so not only from large emerging economies like China, India, Brazil, and Russia but also from a number of new emerging economies in Asia, Latin America and Africa (Gammeltoft, Pradhan, & Goldstein, 2010; Goldstein & Bonaglia, 2007). Emerging markets (EM) are seen generally as low income, rapid growth countries using economic liberalisation as their primary engine of growth (Hoskisson et al., 2000). The economic liberalisation or open policies adopted by these emerging markets during the last two decades has led organisations from these economies to internationalize or seek markets abroad. Emerging markets are known to be heterogeneous in their level of development and environmental surroundings (Bianchi, 2014). Each manifests different starting points or different stages of
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