Multinational Companies Business Strategies in Developing Countries

Over the last few years the number of MNCs embarking on business opportunities in developing countries has increased. Some are proposing that investments from MNCs can play a part in poverty reduction, but little academic literature exists on business strategies for MNCs in poor markets. MNCs engage in various activities through FDI in developing markets, but traditional business approaches to new markets are no longer adequate. This book examines the characteristics of poverty, explores the promise of FDI and evaluates three new business approaches developed for MNCs entering poor markets. The analysis of the business strategies suggests five pointers for MNCs to help reduce poverty in developing countries. By following the five pointers MNCs can create a competitive advantage and form sustainable businesses that include instead of exclude the poor. The analysis should help shed some light on business opportunities in poor markets, and should be especially useful for professionals in International Business and Strategy fields, or anyone else who may be considering doing business in developing countries.