People claim that MNEs pay too little attention to the needs of emerging economies such as Chemicals, pharmaceuticals, soft drinks, etc. Which products should companies sell in the International Market? What are your thoughts and feelings about this subject?
A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is one that spans multiple nations; these corporations are often very large. Such companies have offices, factories or branch plants in different countries. They usually have a centralized head office where they coordinate global management.
They should deal in the goods in which it has comparative advantage. Comparative advantage exists when one has lower opportunity cost in the production of a good or service
The term emerging markets is commonly used to describe business and market activity in industrializing or emerging regions of the world. It is sometimes loosely used as a replacement for emerging economies, but really signifies a business phenomenon that is not fully described by or constrained to geography or economic strength. Examples of emerging markets include China, India, South Korea, Brazil, Malaysia, countries in Eastern Europe, and parts of Africa.
Limits of Comparative Advantage in Emerging Economics
They tend to specialize in products based on intensive labour and/or land. The law of comparative advantage demonstrates their standards of living rise and factor rewards increased given appropriate exchange rates..
Case of MNC's
With the end of the Cold ...
This explains the products that can be sold in international markets.