Globalisation , the World Economy and MNE's mini essay - 4

Globalisation , the World Economy and MNE's mini - Essay Example This paper therefore seeks to explore the emerging global markets, the advantages and disadvantages that accrue from venturing into such markets based on a case study of Research in Motion (RIM). The paper further endeavours to ascertain the extent to which RIM has been successful in penetrating this market. Basically emerging markets are developing countries that are experiencing a fast growth rate that are shifting from centrally planned economies to more liberalized economies. There are several advantages that accrue from emerging markets that make it attractive for investment purposes. The main advantage of these markets is target markets. For example in India, there is a large pool of skilled workers that are readily available and at a relatively affordable price (Hansen 2010). On the same note, its counterpart has equally a large pool of highly skilled and technical staff whose rates are affordable. In relation To The case study, RIM through it research and development unveiled a strategy to choose R&D sites that were backed by mature skills and strong technological institutions. For example, RIM curved out a niche as a centre for innovation with doubling number of patents every two years and the R&D ratio to GDP doubling in the previous decade. The two emerging markets have an advantage as manufacturing bases. There is readily available skilled labor at reasonable wages for manufacturing and assembly operation. Due to the cheaper production costs, was able to attract a sharp increase in the foreign direct investments between 1994 and 2007 with a steep increase in 2006. The same case is applicable to India. Under such circumstances, RIM’s strategy of investing in these emerging markets is valid and helps in reducing production cost whilst making the company stay competitive. Another critical advantage is the outsourcing of expatriates (Dolfsma, Duysters, & Costa 2009). RIM’s