Expanding an MNC Essay Example | Topics and Well Written Essays - 1250 words - 2

Expanding an MNC - Essay Example However, it was unable to compete with the already established competitors in the market and therefore, the company is now entirely focused on domestic devices required for household work. Overall, Nestfree has around 200 factories in the above mentioned countries with around 150,000 employees worldwide. The range of products provided by Nestfree is as follows: However, the company is now seeking to expand its markets in emerging countries of the world. The emerging markets of China, India and Brazil. The information and relative factors of these countries is provided below. The economic system followed in China is a modern one which is supported by a strong financial services sector. One of the major advantages is that the government has zero debt and the Chinese citizens are savers as compared to the borrowing nature of the citizens of United States. The savings by consumers result in high amounts of capital available for banks to invest. This further boosts up investments in the economy which results in economic growth. The political environment in China is relatively stable as compared to other emerging markets. The political risk involved is quite low however; lower transparency in legal and regulatory policies is a big hurdle for foreign companies. The stability in the political environment is brought about by the one party system which results in lower arguments and therefore, greater peace. The business rules and regulations are not very effective with serious transparency issues. Especially for high tech and commodity companies, the regulatory transparency becomes a major issue as well as a big challenge. The Chinese technological environment is quite advanced and the government plans to make china a world leader in the field of science as well as technology. The aim is to make china self sufficient in terms of technology as a result of effective policies designed by the government. The Chinese