Multinational Enterprises In Asian Development Case Study

Multinational Enterprises In Asian Development - Case Study ExampleThe research will review the trends and expansionist strategies employed by multinational enterprises from these nations and evaluate how they managed to attain successes on the global level. Japanese Businesses The Japanese European Trade organisation (JETRO) studied a number of things about the expansion if Japanese businesses into Europe (Sachwald, 1995). They identified five main motives for the expansion of Japanese businesses into Europe. First of all, Japanese businesses seeking to expand into Europe for production reasons. Geographically, Japan has non been a very rich island in terms of natural resources. As such, their expansionist drives into foreign nations include the desire to acquire much needed raw materials. Thus, the establishment of foreign companies enabled them to establish production systems with their engineering science and capital and produce at points close to the customers that they prev iously exported to. Secondly, the cost of energy and electricity has been traditionally high. Japanese expansionist ideology was to make use of cheap electricity and energy costs. Again, Japan has always been an overpopulated island. due to that, land costs are generally higher. The expansion into foreign lands enabled Japanese businesses to economize and save importantly on rent. Other costs like pollution and transport costs were significantly lower in other parts of the world. Thus, Japanese businesses expanded to foreign lands to take advantage of these production-related advantages. Secondly, Japanese businesses moved to various parts of the world in order to develop new markets. In the 1970s, Japanese businesses had exported large volumes of products to nation in different parts of the world.