Question

Should companies be encouraged to seek opportunities in developing nations? 75 words or more.

Answer 1

Developing nations are the emerging economies that hold the huge potential in terms of market for goods, available resources, industry friendly policies by the government and scope of first mover advantage. In the light of these potential benefits, the companies should be encouraged to explore opportunities in these developing economies and cater the demand in these markets. Here, the companies can go for FDI with 100% control or they can opt for the joint ventures with the lcoal partners. It will make local people to have quality products at competitive prices, as well as these companies will get first exposure of these markets and gain higher market share. Further, new jobs will also be created and government in these developing countries will give attractive tax benefits, land and other beneficial facilities. Hence, it increases the presence and new market for their products and services. It also brings forex to the country of company's origin. Hence, it is a beneficial arrangement for all the parties concerned.