ABSTRACT
When thinking about multinational corporations (MNCs) in Asia, consider the following snapshots …
A senior executive from a U.S. fast-food franchise explains that from a business point-of-view, the company was better off when some of their Indonesian stores were burnt down: “We weren’t making any money from those stores in a particular Southeast Asian country and there was no graceful way we could close them down.”
A multinational corporation selling industrial goods to a large state-owned company in a different country chafes at a requirement that they use a local middleman to sell their goods: “This is not an opportunity for corruption. This is mandated corruption.”
One of the largest glass manufacturers in the world quits the China glass market, writing off a multi-million dollar investment because their local joint-venture partner went into competition against them.
Japan is the second largest economy in the world but has created virtually no global brands in fifty years. Some experts point to cumbersome capital markets in Japan as to why there are no Japanese start-ups such as FedEx or Apple Computer.
A Dutch pharmaceutical company has a US$100,000 order unpaid from a state-owned company in China. “We can’t sue. And we can’t stop selling to this client,” complains the general manager.
A large beverage producer looks at Vietnam: “We sell about a can of soda a day per person in the United States and two a year per person in Vietnam. Talk about potential.”
