The word change is a vast understatement in describing what is to occur in the world inthe 21st century. The current statistics, based on purchasing power parity, place the U.S.as having the world’s largest economy. This makes the common man, looking throughan Anglocentric perspective, quite content. But a recent projection in the FinancialTimes states that by the Year 2020, China is to be ranked #1 as the world’s largesteconomy, followed by the US, then India, and then Japan. These predictions joltAmerica’s comfortable position as number one and show that a new focus needs to becreated. Specifically it is important for researchers in America to understand whatmultinational companies in developing countries are doing differently and how this isimpacting their expansion and progress.My research is on multinational corporations in the developing world. Going global is adecision that may be based on pressures to maximize shareholder wealth, market share,or gain financial flexibility within the company. Using information on the characteristicsof multinationals of developing nations, including differences in their economic, legaland governmental policies, and corporate cultural ideals, I’ve learnt what impacts theirabilities and progress. To list a few other differences in infrastructure of developingmultinationals, the corporate philanthropy, market strategy, financial undertaking, androle of acquisitions play a key role in shaping their identities. This will prove thepossibilities and potential India and other emerging developing countries have byexpanding their multinational presence. It is important to see both sides of the spectrum,the glamorized examples of the affluent developed countries’ multinational position aswell as the lesser known developing countries’ multinationals.By learning about India’s Tata Group, specifically Tata Motors, and how it’s taking thelead in domestic and foreign markets, there is proof of the importance and power ofemerging multinationals. If continued attention is not placed on these countries, Americamay be left behind as the developing underdogs make leaps and bounds towardcapturing strength and lasting market power.
