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Can you think of any other advantages that MNEs from developed countries may have when entering...

Can you think of any other advantages that MNEs from developed countries may have when entering an emerging market?

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Answer #1

Advantages of entering emerging markets to MNEs:

1. First-mover advantage: International companies enjoy a wide and a stable market in emerging markets if they are among the first such corporations to do so. They develop an household name and enjoy a large market.

2. Access to capital. MNEs enjoy easy access to capital like land and natural resources which are abundant in emerging markets.

3. Potential for high growth. MNEs have potential for large growth as the consumers are large in emerging markets and have disposable income.

4. Lower costs. Labor cost is lower in emerging markets as labor is available in plenty.

5. Diversification of risk.

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