Asian Market Case Study

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Recommended: The Impact of Multinational Corporations

Multinational corporations are growing in with the increase in globalization over the last fifty years. As competition between organizations continues to rise with the increase in international trade, companies are continuously looking for opportunities to expand their operations. The Asia market is one area of the world that has generated significant interest from multinational corporations. The purpose of this document is to discuss the reasons that Asia is such an attractive market for multinational corporations. Other emerging markets are also being to challenge the dominance of developed country’s multinational corporations. Why this trend is developing and how developed countries can address this challenge will also be discussed. …show more content…

The first reason is that the local companies understand the needs of their consumer population and can quickly adjust to meet the needs of those individuals. Another advantage that local companies possess is the ability to develop business models that adapt to the culture of their region. Culture can be defined as “the complex system of values, traits, morals, and customs shared by a society” (Guffey & Loewy, 2011, 2008, p. 83). Having an understanding of behaviors of a society can allow for adjustments to various product lines that support these cultures. The last reason is the adoption of the latest technologies. Emerging markets can be more flexible since they are not confided by costly infrastructures from old technology. This can be a significant advantage in multiple industries as well as appealing to the younger generation which is very technology savvy (Cullen & Parboteeah, 2011).
Developed countries such as the United States, Europe and Japan need to adjust their strategies based on the impact of emerging markets. Developed countries do have some advantages or emerging markets that have allowed for longer term stability in their economies. These countries usually have less volatility in their economic performance, are less impacted by global economic shocks due to their ability to shift or modify their response to the situation (Hoen,

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