Multinational Companies from Emerging Economies: Composition, Conceptualization and Direction in the Global Economy

229 Pages·2007·1.724 MB·English

by  Andrea Goldstein (auth.)

International Political Economy Series
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Leslie Elliott Armijo (editor)
FINANCIAL GLOBALIZATION AND DEMOCRACY IN EMERGING MARKETS
Robert Boardman
THE POLITICAL ECONOMY OF NATURE
Environmental Debates and the Social Sciences
Jörn Brömmelhörster and Wolf-Christian Paes (editors)
THE MILITARY AS AN ECONOMIC ACTOR
Soldiers in Business
Gordon Crawford
FOREIGN AID AND POLITICAL REFORM
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INTERNATIONAL POLITICAL ECONOMY AND MASS COMMUNICATION
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National Intellectuals and Transnational Hegemony
Martin Doornbos
INSTITUTIONALIZING DEVELOPMENT POLICIES AND RESOURCE
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Developing Winners and Losers
Fred P. Gale
THE TROPICAL TIMBER TRADE REGIME
Meric S. Gertler and David A. Wolfe
INNOVATION AND SOCIAL LEARNING
Institutional Adaptation in an Era of Technological Change
Anne Marie Goetz and Rob Jenkins
REINVENTING ACCOUNTABILITY
Making Democracy Work for the Poor
Andrea Goldstein
MULTINATIONAL COMPANIES FROM EMERGING ECONOMIES
Composition, Conceptualization and Direction in the Global Economy
Mary Ann Haley
FREEDOM AND FINANCE
Democratization and Institutional Investors in Developing Countries
Keith M. Henderson and O. P. Dwivedi (editors)
BUREAUCRACY AND THE ALTERNATIVES IN WORLD PERSPECTIVES
Jomo K.S. and Shyamala Nagaraj (editors)
GLOBALIZATION VERSUS DEVELOPMENT
Angela W. Little
LABOURING TO LEARN
Towards a Political Economy of Plantations, People and Education
in Sri Lanka
John Loxley (editor)
INTERDEPENDENCE, DISEQUILIBRIUM AND GROWTH
Reflections on the Political Economy of North–South Relations at the
Turn of the Century
Don D. Marshall
CARIBBEAN POLITICAL ECONOMY AT THE CROSSROADS
NAFTA and Regional Developmentalism
Susan M. McMillan
FOREIGN DIRECT INVESTMENT IN THREE REGIONS OF THE SOUTH AT
THE END OF THE TWENTIETH CENTURY
S.Javed Maswood
THE SOUTH IN INTERNATIONAL ECONOMIC REGIMES
Whose Globalization?
]ohn Minns
THE POLITICS OF DEVELOPMENTALISM
The Midas States of Mexico, South Korea and Taiwan
Lars Rudebeck, Olle Törnquist and Virgilio Rojas (editors)
DEMOCRATIZATION IN THE THIRD WORLD
Concrete Cases in Comparative and Theoretical Perspective
Benu Schneider (editor)
THE ROAD TO INTERNATIONAL FINANCIAL STABILITY
Are Key Financial Standards the Answer?
Howard Stein (editor)
ASIAN INDUSTRIALIZATION AND AFRICA
Studies in Policy Alternatives to Structural Adjustment
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Hampshire RG216XS, England
Multinational Companies
from Emerging Economies
Composition, Conceptualization and
Direction in the Global Economy
Andrea Goldstein
Foreword by Louis T. Wells
© Andrea Goldstein 2007
Foreword © Louis T.Wells 2007
Softcover reprint of the hardcover 1st edition 2007 978-0-230-00704-8
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Library of Congress Cataloging-in-Publication Data
Goldstein,Andrea E.
Multinational companies from emerging economies :composition,
conceptualization and direction in the global economy / Andrea
Goldstein ;foreword by Louis T.Wells.
p.cm.—(International political economy series)
Includes bibliographical references and index.
1.International business enterprises–Developing countries.I.Title.
HD2932.G62 2007
338.8(cid:2)881724—dc22 2006053272
10 9 8 7 6 5 4 3 2 1
16 15 14 13 12 11 10 09 08 07
Contents
List of Tables vii
List of Boxes ix
Foreword by Louis T. Wells x
Preface xiii
Acknowledgments xx
List of Abbreviations xxii
1 Introduction 1
2 Trends in Southern OFDI 7
2.1 What is corporate nationality? 7
2.2 The quality of the data 10
2.3 Aggregate statistics 11
2.4 The geography of investment 15
2.5 Enterprise data 24
3 Toward an Industry Categorization 31
3.1 General features 31
3.2 EMNCs in oil and gas 33
3.3 EMNCs in non-financial services 40
4 The New Asian Multinationals 52
4.1 Asian Tiger multinationals 52
4.2 Nurturing and sustaining competencies
in Chinese MNCs 61
5 Multilatinas 67
5.1 The early phase 67
5.2 The consequences of market reforms 68
6 Existing Theories and Their Relevance to EMNCs 74
6.1 The monopolistic advantage and the
product lifecycle 74
6.2 Behavioral models 77
6.3 The eclectic paradigm – ownership,
location, internalization 79
v
vi Contents
6.4 Dynamic capabilities and the
resource-based view 84
6.5 Conglomeration and internationalization 87
7 The Role of Governments 94
7.1 The role of support policies 94
7.2 The role of competition policies 99
7.3 The role of international policies 102
7.4 The political economy of EMNCs 104
8 Some Key Questions 117
8.1 The role of diaspora entrepreneurship
in homeland FDI 117
8.2 The challenge of multinational management 122
8.3 Financial market issues 127
8.4 The impact on the host economies 130
9 Consequences for OECD Governments, Firms,
and Workers 136
9.1 Motivations and entry modes 136
9.2 Performance 139
9.3 The risk of protectionism 142
9.4 Proactive strategies 144
9.5 A complex issue 146
10 Conclusions – The Way Ahead 148
Appendix 1 Selected EMNCs’ acquisitions in
the OECD market 153
Appendix 2 Representative disputes between EMNCs and
host governments in developing countries 165
Notes 169
References 181
Company Names Index 199
Subject Index 205
List of Tables
2.1 FDI outflows from emerging and
transition economies 12
2.2 Outward FDI stocks from emerging and
transition economies 13
2.3 Geographical destinations of FDI from
selected emerging and transition economies 18
2.4 Geographical origin of FDI in selected economies 20
2.5 Surveys of investment abroad in emerging economies 22
2.6 Employment at emerging multinationals’
affiliates in selected OECD countries 23
2.7 Summary statistics for the world’s largest MNCs 25
2.8 The top 50 MNCs based in developing countries 26
2.9 The top MNCs based in developing countries 29
3.1 The top 50 MNCs based in developing countries 32
3.2 Overseas expansion by main non-OECD
national oil companies 35
3.3 Fast-food chains from the developing world 48
3.4 Selected foreign investments by Indian
BPO companies 50
4.1 Major Korean greenfield investments in Europe and
North America 54
4.2 Singapore’s industrial township projects 57
6.1 The world’s 100 largest contractors 77
6.2 The eclectic framework of different
industrial typologies 80
6.3 The investment development
path (IDP) model 83
7.1 The regulation of outward FDI in
selected countries 97
7.2 EMNCs’ participation in the MIGA
portfolio 104
8.1 Foreign directors on the boards of some
of the world’s largest EMNCs 127
8.2 Major deals since 2004 in energy and
telecommunications industries 128
vii
viii List of Tables
8.3 Russian and CIS listings on London’s
main market 131
9.1 OECD countries’ initiatives to attract
Chinese MNCs 137
9.2 Selected Chinese MNCs’ R&D centers
in OECD countries 139
List of Boxes
2.1 Regional strategies in Central and Eastern
European energy markets 16
2.2 Typologies of FDI activity data 21
3.1 The Orascom Group: an Arab multinational 42
4.1 The role of Temasek in Singapore’s
regionalization strategy 55
4.2 Asian investors in the Southern Africa
textile industry 60
4.3 Making a Chinese global brand: the Haier case 64
5.1 Two EMNCs follow their customers 71
6.1 Cemex: linking, leveraging, and learning 85
6.2 Tata: from Indian to global conglomerate 90
6.3 A Thai conglomerate in China: the Charoen
Pokphand Group 91
6.4 D’Long Strategic Investment: a multinational
conglomerate 92
7.1 Recent policy changes in South Africa 96
7.2 The Malaysian South–South Corporation
Berhad (MASSCORP) 98
7.3 Economic diplomacy and corporate
internationalization: the case of Venezuela 107
7.4 Cemex in Indonesia 111
7.5 Petrobrás in Bolivia 114
8.1 Ethnic ties and FDI: the case of Techint 121
8.2 Human resource management at SABMiller 124
8.3 Ramatex Namibia 134
9.1 China International Marine Containers (Group)
in the United States 140
9.2 EMNCs to the rescue: the case of MG Rover 145
ix