Tuesday, September 10, 2019

Globalisation , the World Economy and MNE's mini essay - 3

Globalisation , the World Economy and MNE's mini - Essay Example er strategy investing in India than in China where the political, economic and social factors are more favorable to IT related firms and due to the immense potential of penetrating the untapped market in the Indochina region. One of the major location specific advantages that RIM has to evaluate in considering India as a lucrative destination is favorable government policies on FDIs. The Indian government allows 100% FDI in some sectors, which include research and development and infrastructure (Himachalapathy, 2010), two sectors where RIM has an interest. In other words, India has an investor friendly climate that RIM may capitalize to access the more than a billion Indian population in addition to prospective customers in the Indochina region, a market that has immense opportunities for growth. For instance, considering the unsaturated penetration of mobile technologies in the region, RIM has a chance to undertake comprehensive research and development in coming up with a product that targets the specific needs of the population through its Blackberry model. In other words, as Dickens (2011) argued, Rim by taking such an approach will be in a position to connect with different social strata and classes in the region and produce specific products that target the needs of people, which will result in more market penetration. Similarly, as a consequence of globalization, China has opened up its doors to FDIs, with the country being the current highest destination of FIDs globally driven by improved economic policies (Himachalapathy, 2010). As such, RIM has a huge prospective market in the new and untapped Chinese market where the Blackberry brand can find an impressive market driven by a rapidly broadening middle class population with a high purchasing power that is attracted to spending on foreign products (Sinha, 2007). Labor is another location specific advantage that makes both India and China lucrative destinations for investors and where RIM may lower its

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