Outward Investments from Emerging Markets: An Overall Assessment of the Opportunities and Challenges that Firms from Emerging Markets Face in the Era of the Global Business Revolution

Abstract

The
 global
 business
 revolution
 has
 witnessed
 an
 unprecedented
 concentration
 of
 business
 power
 at
 the
 global
 level.
 Gigantic,
 multinational
 corporations
 with
 globally
 recognized
 brands
 and
 technologies
 have
 extended
 their
 supply
 chains
 as
 well
 as
 their
 distribution
 channels
 globally.
 They
 now
 threaten
 companies
 in
 emerging
 markets
 and
 even
 in
 their
 own
 domestic 
markets 
as 
well.
Emerging‐market 
companies 
must 
often 
go 
global
 to
 be
 able
 to
 survive.
 Globalization
 brings
 not
 just
 opportunities
 but
 also
 numerous 
challenges 
that 
these 
companies 
must 
master 
in 
order 
to 
compete
 and
 with
 multinationals.
 This
 essay
 provides
 an
 overview
 of
 opportunities
 and 
challenges 
that 
emerging‐market 
companies 
face, 
discusses 
the
 political
 dimension
 involved,
 and
 points
 out
 the
 major
 difficulties
 for
 firms
 that
 companies 
in
 emerging 
markets 
must 
compete
 with 
such 
as 
well‐established
 multinationals.
 An
 example
 of
 the
 Chinese
 pharmaceutical
 company
 Sanjiu
 will 
be 
used 
in
 this 
discussion.



Keywords: Outward Investments, Emerging Markets, China, Pharmaceutical Industry, Globalization