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Outward Internationalization and FDI: Motives for Malaysian MNEs Moving into China

Published on Jan 1, 2012in Review of Business and Finance Studies
Fariza Hashim5
Estimated H-index: 5
(Prince Sultan University)
Abstract
Firms are pressured to operate globally to reap the benefits of other locations through foreign investment. This phenomenon occurs not only among multinational enterprises from developed countries but also younger multinational enterprises from developing countries. Various factors induce them to invest in foreign locations. This paper highlights the motives of multinationals from developing countries engaging in foreign locations and capitalizing on location to enhance their competitiveness. This study uses one Malaysian company’s experiences to analyze the situation through a qualitative analysis. The results show that intense competition in the domestic and global market has forced firms to move out of their home country and relocate their production centers in China. China offers various factors that entice Malaysian MNEs to escalate their global expansion.
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