scholarly journals The Internationalization of Firms: Some Lessons from ASEAN Firms

Author(s):  
Mohamad Hanapi Mohamad

In the last 50 years the debate on the development of international business remained unsettled, especially that concerning the establishment of multinational firms from developing countries. Using the Ownership Locational Internalization (OLI) Model this paper examined the formation of multinational firms from ASEAN countries. We found positive similarities in the advancement of the firm’s specific ownership advantages such as skills, management know-how, R&D and technological capabilities. Unlike the firms from developed countries, the firms from developing countries adopted local elements in their products and services.  

2014 ◽  
Vol 10 (3) ◽  
pp. 225-230
Author(s):  
Wei-Li Wu ◽  
Yi-Chih Lee

Firms in developing countries generally have lower technological and marketing capabilities compared to firms in developed countries. Joining OEM alliances can help firms with fewer capabilities to learn from their partners and then upgrade their technological capabilities. In this kind of scenario, learning firms in OEM alliances are usually from developing countries, and they play the role of suppliers; on the other hand, teaching firms are usually from developed countries and play the role of buyers. Although OEM alliances provide a platform for acquiring, transferring and creating knowledge, few suppliers can sufficiently upgrade their technological capabilities to reach a higher level and develop marketing capabilities in order to complete in the global market. Therefore, it is an important issue to know how an OEM supplier from developing countries can become a leading firm in the global market. In this study, we choose Giant Bicycles to explore this issue. We conduct a case study to explore the growth of Giant Bicycles from an OEM supplier to a leading company in the bicycle industry.


2019 ◽  
Vol 34 (3) ◽  
pp. 790-809 ◽  
Author(s):  
Niels Johannesen ◽  
Thomas Tørsløv ◽  
Ludvig Wier

Abstract This paper uses a global dataset with information about 210,000 corporations in 142 countries to investigate whether tax avoidance by multinational firms is more prevalent in less-developed countries. The paper proposes a novel approach to studying cross-border profit shifting, which has relatively low data requirements and is therefore particularly well-suited for the context of developing countries. The results consistently show that the sensitivity of reported profits to profit-shifting incentives is negatively related to the level of economic and institutional development. This may explain why many developing countries opt for low corporate tax rates in spite of urgent revenue needs and severe constraints on the use of other tax bases.


Media Ekonomi ◽  
2014 ◽  
Vol 22 (3) ◽  
pp. 221
Author(s):  
Agustina Suparyati

<p>The purpose of this study is to examine the effect of economic development on economic growth. Economic freedom as an indicator of the progress of a country's welfare level consisting of 10 constituent components namely Property Rights, Freedom from Corruption, Fiscal Freedom, Government Spending, Business Freedom or Regulatory Freedom, Labor Freedom, Monetary Freedom, Freedom Trade, Investment Freedom and Financial Freedom. This study uses annual quantitative data in the span of time between 2001-2012 with the object of research in developed countries in Asia (Japan, China, South Korea and Singapore) and developing countries in Asia (Indonesia, Malaysia, Laos, Thailand, Philippines, Singapore and Vietnam ) The results obtained that in ASEAN countries the variables that affect economic growth are variables of right property, business freedom, trade freedom and financial freedom while in developed countries in Asia, the components of influential economic freedom are property right, freedom from corruption, government spending, monetary freedom , business freedom, and financial freedom.</p>


Author(s):  
Swapan Kumar Patra

Multinational Enterprises usually keep their crucial R&D close to their home base. However, recent trends show that MNEs are increasingly offshoring their R&D activities. A couple of decade ago this R&D offshoring phenomenon was mainly restricted in the developed countries. Since early 1990’s this paradigm has changed and many Multinational firms prefer developing countries as their R&D destination. Among developing countries, India and China are favorable destinations for many MNEs. The R&D alliance trends of foreign firms show that, in India they prefer Indian domestic firms and in China, they prefer universities and government research institutes. Government of both these countries should take policy measures to strengthen the linkages between foreign firms and local actor of innovation system. Also, innovation is no longer restricted to or confined within a firm’s border. Firms are acquiring knowledge from outside its boundary by “Open Innovation Mode.”


2016 ◽  
Vol 16 (1) ◽  
pp. 91-112
Author(s):  
David Gomtsyan

Evidence suggests that advanced economies make and attract relatively more FDI as a share of GDP than developing countries. Comparing the composition of international liabilities across countries the paper argues that higher risks and regulatory barriers in developing countries are the primary reasons behind the relatively lower levels of FDI liabilities to GDP in developing countries. The paper uses a model with heterogeneous multinational firms to explain this empirical observations. In the model developed countries make relatively more FDI because the average productivity of firms in these countries is higher, thus there are relatively more firms with sufficiently high productivity levels, that can profitably enter into foreign markets.


Economics ◽  
2015 ◽  
pp. 321-343
Author(s):  
Swapan Kumar Patra

Multinational Enterprises usually keep their crucial R&D close to their home base. However, recent trends show that MNEs are increasingly offshoring their R&D activities. A couple of decade ago this R&D offshoring phenomenon was mainly restricted in the developed countries. Since early 1990's this paradigm has changed and many Multinational firms prefer developing countries as their R&D destination. Among developing countries, India and China are favorable destinations for many MNEs. The R&D alliance trends of foreign firms show that, in India they prefer Indian domestic firms and in China, they prefer universities and government research institutes. Government of both these countries should take policy measures to strengthen the linkages between foreign firms and local actor of innovation system. Also, innovation is no longer restricted to or confined within a firm's border. Firms are acquiring knowledge from outside its boundary by “Open Innovation Mode.”


1976 ◽  
Vol 6 (4) ◽  
pp. 609-626 ◽  
Author(s):  
Michael B. Bader

The decline in birthrates in the developed countries of the world has forced multinational corporations engaged in the production of infant formula to seek out new markets in the developing countries, where burgeoning population rates potentially guarantee the long-term profitability of these corporations. This development, ostensibly benign and nutritionally advantageous to infants in developing countries, has serious public health consequences, due to the high relative cost of purchased formula and the paucity of hygienic facilities essential to the sterile preparation of bottle formula. This paper delineates in detail economic and contraceptive advantages of breast-feeding, and examines the role of health personnel and multinational advertising techniques which have catalyzed the decline in breast-feeding. In addition, the paper focusses on the question of cultural imperialism and current efforts to regulate the multinational firms through both United Nations groups and stockholders' suits. Finally, some suggestions are made concerning ameliorative public policy approaches to the breast-feeding controversy.


2011 ◽  
Vol 81 (4) ◽  
pp. 238-239 ◽  
Author(s):  
Manfred Eggersdorfer ◽  
Paul Walter

Nutrition is important for human health in all stages of life - from conception to old age. Today we know much more about the molecular basis of nutrition. Most importantly, we have learnt that micronutrients, among other factors, interact with genes, and new science is increasingly providing more tools to clarify this interrelation between health and nutrition. Sufficient intake of vitamins is essential to achieve maximum health benefit. It is well established that in developing countries, millions of people still suffer from micronutrient deficiencies. However, it is far less recognized that we face micronutrient insufficiencies also in developed countries.


1995 ◽  
Vol 34 (4III) ◽  
pp. 1025-1039 ◽  
Author(s):  
Yasmeen Mohiuddln

The purpose of the present paper is to formulate a composite index of the status of women and to rank both developed and developing countries on the basis of that index. This index is presented as an alternative or complement to the current status of women index, published by the Population Crisis Committee (PCC) and used by the World Bank and the United Nations, which focuses on indicators measuring health, education, employment, marriage and childbearing, and social equality. The paper argues that these indicators have a poverty-bias and measure women's status in terms of structural change rather than in terms of their welfare vis-ii-vis men. The PCC index is also based on the implicit assumption that women's status in developing countries ought to be defined in a similar way as in developed countries, thus including primarily only those indicators which are more relevant for developed countries. To remedy these defects, the paper presents an alternative composite index, hereafter labelled the Alternative Composite (AC) index, based on many more indicators reflecting women's issues in both developed and developing countries. The results of the statistical analysis show that the ranking of countries based on the AC index is significantly different from the PCC index.


1970 ◽  
Vol 10 (4) ◽  
pp. 469-490
Author(s):  
Nurul Islam

Foreign economic aid is at the cross-roads. There is an atmosphere of gloom and disenchantment surrounding international aid in both the developed and developing countries — more so in the former than in the latter. Doubts have grown in the developed countries, especially among the conservatives in these countries, as to the effectiveness of aid in promoting economic development, the wastes and inefficiency involved in the use of aid, the adequacy of self-help on the part of the recipient countries in husbanding and mobilising their own resources for development and the dangers of getting involved, through ex¬tensive foreign-aid operations, in military or diplomatic conflicts. The waning of confidence on the part of the donors in the rationale of foreign aid has been accentuated by an increasing concern with their domestic problems as well as by the occurrence of armed conflicts among the poor, aid-recipient countries strengthened by substantial defence expenditure that diverts resources away from development. The disenchantment on the part of the recipient countries is, on the other hand, associated with the inadequacy of aid, the stop-go nature of its flow in many cases, and the intrusion of noneconomic considerations governing the allocation of aid amongst the recipient countries. There is a reaction in the developing countries against the dependence, political and eco¬nomic, which heavy reliance on foreign aid generates. The threat of the in¬creasing burden of debt-service charge haunts the developing world and brings them back to the donors for renewed assistance and/or debt rescheduling.


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