Emerging opportunities in International marketing

Opportunities are becoming more and more global in an increasing number of industries and
markets. With the progressive liberalization of economic policies in many countries, firms
encounter growing competition not only in markets but in domestic markets as well.

Multinational Corporations

Multinational Corporations (MNCs) are major players in the world of international business.
In India, the mention of an MNC usually elicits mixed reaction among the Indians. On one
hand, MNCs are associated with exploitation and ruthlessness. They are often criticised for
moving resources in and out of the country as they strive for profit without much regard for the
country’s social welfare.

Example: Varity Corporation, an MNC of Canada was criticised for its action in 1991 to
relocate its headquarter from Toronto to United States (Buffalo) in order to take advantage of
the US – Canadian Trade Agreement. For a long time, India referred to MNCs as “agents of
neo- colonialism”. It was not until 1991 that India began to woo MNCs. Yet several years later,
MNCs are still not welcome to India. To many Indians, such MNCs as Pepsi, Coca-Cola,
Kentucky Food Corporation (KFC) and Enron Corporation are all “foreign devils”.
• In defence of MNCs more and more of them have been trying to be responsible members
of the society.

Example: Pepsi and Coke are contributing a lot for the development of sports especially
cricket in India.

• On the other hand, MNCs have power and prestige; additionally, they create social
benefit for facilitating economic balance. As explained by Miller, “with resources, capital,
food, and technology unevenly distributed around the planet and all in short supply, an
efficient instrument of quick and effective production and distribution of a complex of
goods and services is the first essential.” This instrument is the MNC.

• Regardless of whether MNCs are viewed positively or negatively, they are here to stay
and the important point is to understand when a company becomes a member of this elite
group. MNC is not a one-dimensional concept. Similarly, globalisation does not have a
single definition. There is no single criterion that proves satisfactory at all times in
identifying an MNC; whether a company is identified as MNC or not depends on a
number of criteria used.
 Notes
Example: Even though the dollar value of the home market for Japanese companies is
the second largest in the free world (after the United States), the
market outside Japan is 85 percent of the world potential for Japanese
companies.

For European countries, the picture is even more dramatic. Even though
Germany is the largest single-country market in Europe, 94 percent of the
world market potential for German companies is outside of Germany.

Many companies have recognized the importance of conducting business

activities outside, the home country. Industries that were strictly national
in scope only a few years ago are dominated today by a handful of global
companies. The rise of the global corporation closely parallels the rise of
the national corporation, which emerged from the local and regional
corporation in the 1880s and the 1890s in the first quarter of the 20th
century, there were thousands of auto companies in the world, and more
than 500 in the United States alone. Today, fewer than 20 companies
remain worldwide, and only 2 of them are American. In most industries,
the companies that will survive and prosper in the next country will be
global enterprises. Some companies that do not respond to the challenges
and opportunities of globalisation will be absorbed by more dynamic
enterprises; others will simply disappear.