Emerging Asian Economies and multinational enterprises' (MNEs) Strategies. Focusing on Chinese MNE's activities

Abstract

The rise of emerging market multinationals is a new and dynamic process, while their approach towards their host economies are relatively unique compared to more developed MNEs. In this course material we summarized the existing theories of internationalization and foreign direct investment, presenting the mainstream theories, the Japanese School of FDI and some of the new theoretical avenues. After summing up the major characteristics of the East Asian model of development - including economic processes, institutional and political aspects - we analysed the major driving forces - push and pull factors - behind the international expansion strategies of Chinese MNEs. The analysis used a comparative approach and examined the similarities as well as differences of Japanese, South Korean and Chinese outward FDI. After presenting the main features of Chinese outward foreign direct investment globally, we narrowed the analysis to Chinese investments to the developed world and used Chinese outward FDI in Central and Eastern Europe as a case study, including its changing patterns, characteristics as well as major location determinants.