Critically Assess the Opportunities and Challenges of Emerging Market Multinational Enterprises (Emmes) When They Internationalise Into Developed Markets
Expansion strategies by Multinationals, with many of these enterprises reaching out to emerging economies to perform many of their activities, taking advantage of their raw materials, low labour costs and capital.
EMMEs then began to export to these developed economies and with this transition comes a complete contradiction to Economic Theory, which should be seeing richer countries exporting to poorer ones, and the flow of FDIs flowing similarly in the same direction, and with it, a high level of managerial and entrepreneurial skill. (http://www.economist.com/node/10498492&arubalp=4660316c-3d2b-47c5-bdca-f894fb2d6b)
With these trends, and the way the market is turning, many opportunities are presenting themselves for EMMEs. One opportunity is having a completely New Market to target their products at. Initially, you would look at minimising the psychic distance, by internationalising into markets 'similar' to that of their own (psychic distance reference), sequentially targeting