Business Week: Emerging Markets’ Uneven Recovery Creating New Strategic Openings – Multinationals in the Midst of the Downturn

Mirtchev, A. (2009, February 26). Emerging Markets’ Uneven Recovery Creating New Strategic Openings – Multinationals in the Midst of the Downturn. Business Week.  Business Week.

BusinessWeekThe President of Krull Corp. analyzes how the financial crisis and massive across-the-board government intervention could affect the short to medium-term strategies of multinationals. Dr. Alexander Mirtchev argues that the multinationals feeling pressure from the economic downturn should not shy away from increased expansion in rapidly developing economies and emerging markets. At first glance, developing economies have a wider scope of unutilized profit margins and untapped resources. A more in-depth look provides the opportunity to glimpse more long-term benefits for those non-state actors that wish to secure a new position for themselves in the global economy. These markets can provide a positive factor that could offset some of the negative results that are anticipated in multinationals’ core markets. Many of these economies are expected to emerge from the crisis sooner than the developed economies which are likely to continue to struggle with the consequences of heavy government intervention in the markets and subsequent sovereign indebtedness. International conglomerates should be bold in embracing new opportunities that the emerging markets provide because it may put them ahead of the curve and allow them to take full advantage of the subsequent economic recovery.