Monday, November 13, 2006

Ambiguity shock: How Western firms lose!

Second, once companies from emerging markets have demonstrated a degree of success, they too, can tap capital and talent markets in developed countries. Like American and European companies, they can raise money by, say, listing themselves on the New York Stock Exchange or on the Nasdaq. Emerging giants oft en become investors’ darlings, making it easy for them to sell equity shares or bonds. In the talent market, intermediaries from developed countries that are trying to fill the gaps in the soft infrastructure in emerging markets help local businesses get more competitive.

Third, multinational companies are reluctant to tailor their strategies to every developing market in which they operate. They find it costly and cumbersome to modify their products, services and communications to suit local tastes, especially since the opportunities in developing countries tend to be relatively small and risky.

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Source:- IIPM Editorial

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