Multinational Enterprises In Asian Development Case Study

Multinational Enterprises In Asian Development - Case Study Example The research will review the trends and expansionist strategies employed by multinational enterprises from these nations and evaluate how they managed to attain successes on the global level. Japanese Businesses The Japanese European Trade Organisation (JETRO) studied a number of things about the expansion if Japanese businesses into Europe (Sachwald, 1995). They identified five main motives for the expansion of Japanese businesses into Europe. First of all, Japanese businesses seeking to expand into Europe for production reasons. Geographically, Japan has not been a very rich island in terms of natural resources. As such, their expansionist drives into foreign nations included the desire to acquire much needed raw materials. Thus, the establishment of foreign companies enabled them to establish production systems with their technology and capital and produce at points close to the customers that they previously exported to. Secondly, the cost of energy and electricity has been tradi tionally high. Japanese expansionist ideology was to make use of cheap electricity and energy costs. Again, Japan has always been an overpopulated island. Due to that, land costs are generally higher. The expansion into foreign lands enabled Japanese businesses to economize and save significantly on rent. Other costs like pollution and transport costs were significantly lower in other parts of the world. Thus, Japanese businesses expanded to foreign lands to take advantage of these production-related advantages. Secondly, Japanese businesses moved to different parts of the world in order to develop new markets. In the 1970s, Japanese businesses had exported large volumes of products to people in different parts of the world.