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Starting from 1980s the increasing growth of commercial relationships between firms from different countries has lead to the rise of several multinational companies (MNCs). Generally speaking a MNC IS a company with a global strategy which has its headquarter in the home country and one or more subsidiaries in at least one foreign country. While the majority of MNCs today is from developed countries, in the past decade there has been an increase in number of MNCs from developing countries.

According to a study by Ernst&Young (May 2008), these are claiming growing share f the global market, manufacturing and consuming themselves high-technology products and establishing their production bases abroad, most phenomenon is calle trend of having devel Íng•: levels comparable to o competitors. Among PACE 1 ors countries. This refers to the erforming at zed nations stock market, 8 companies are from emerging countries.

Nevertheless, there is a Sharp distinction between the BRIC countries (grazil, Russian Federation, India and China) and other developing countries: the first ones represent 53% in number among the world’s top 1000 companies. For a country to be classified by the UN as a “developing country’, it must meet three critena: a low-income crite to page criterion, a human resource weakness criterion and an economic vulnerability criterion. Among developing countries there are now considerable differences between the catching-up countries (e. . newly Industrialized countries) and falling behind, less developed countries. Developing countries-MNCs tend to be less competitive than developed countries-MNCs because of underdeveloped institutions and problematic environments. They have smaller ize, less cutting-edge technology and less sophisticated resources. gut empirical analysis shows that when both types of MNCs operate in countries with difficult governance conditions (poor regulatory quality, corruption, inefficient market mechanisms, etc. the first ones can gan a competitive advantage since they are more used to operate in such conditions with respect to the others_ Both types of MNCs face difficulties in their internationalization but developing country-M NCs are most prevalent among the largest foreign firms in LDCs (least- developed countries). The implication for this is that managers of developing countries- MNCs can better select foreign countries in which to expand and become leading investors in those countries.

In comparison with developed countries-MNCs, developing countries-MNCs mainly meet the following disadvantages: ‘k They have less ownership in areas such as branding, advertising and technology; * Host governments tend to favor the establishment of developed countries-MNC technology; developed countries-MNCs that are believed to bring more advanced technolo»,’ to the nation; * Consumers tend to prefer products provided by foreign firms rom developed countries; * They have to compete against well-established foreign MNCs.

On the contrary, in their home countries developing country- MNCs experience these advantages: * They know their clients better * Their production and distribution facilities are better adapted to the condltlons of the country * They know how to move in the challenging institutional environment The familiarity with such conditions and the expertise in managing offer developing countries -MNCs a huge potential to become stronger than their industrialized nations counterparts in LDCs.

This concept is empirically supported by the 2005 World Banks Global Development Finance Report that indicates that firms from China, Russia, India, Malaysia and South Africa have comparative advantages in LDCs in the form of: greater managerial experience with economical, political and legislative conditions in the host country, cultural similarities, geographical proximity, managers who are indigenous to the area. Most of the studies have been confined to firms operating in well-established developed countries. The pattern of internationalization in less developed and newly industrializing conomies is different.

Since the late 1960s, a PAGF3rl(FS less developed and newly industrializing economies is different. Since the Iate 1960s, an increasing number of firms from these economies have emerged as active players in Foreign Direct Investment (FOI): Argentina, Brazil, Hong Kong, India, Republic of Korea, Singapore, and Taiwan. Since 2003, the growth rate of Outward FDI (OFDI) from emerging markets has overtaken the growth from industrialized countries, and in particular OFDI from the BRIC countries has received growing attention.

In this context e are presenting the example ofTATA GROUP, namely the Tata Motors example. Tata Motors is one such name that comes central as one talk about successful national growth together with international expansion. It is currently India’s largest automobile company, where It is by far the leader in commercial vehicles and the second largest player in the passenger vehicles market. Headquartered in Mumbai, Tata Motors became the first company from India’s engineering sector to be listed in the NYSE in September 2004.

Established in 1945, Tata Motors Limited has high international resence in developing countries with demand similar to India such as South Africa, Thailand and Argentina – where it has established manufacturing and assembly plants. Internalization is a key component in the company’s strategy, given strong competition from other Indian companies. To gain advantage against new entrants in the market and reducing the risks given by Indian economy cycl PAGF gain advantage against new entrants in the market and reducing the risks given by Indian economy cyclicality, Tata Motors started looking overseas.

Today the company is further trying to invest in nexplored countries with potential for big business-such as US, European countries, Africa, China, etc. Even though Tata is so powerful, its name is not so famous in Western country. his is due to the fact that Tata’s fortune has been made in developing countries. While historically Asian companies belonging to developing countries (like Japanese firms decades ago and Southern-Korean Samsung more recently) go global by building their strength in their domestic markets and then focusing on expanding towards West with heavy FDI, Tata has undertaken a different pattern.

It has become tremendously big and powerful while selling to people in poor developing SOURCES: Developing Country Multinational Companies: Vehicles of Globalization 2. 0; A. Wade, The African Finance Journal, 19 June 2008 Transforming disadvantages into advantages: developing-country MNES in the least developed countries; Avaro Cueruo-Cazurra and Mehmet Genc, Journal of International Business Studies (2008) 39, 957-979 Industrial Development, Globalization and Multinational Enterprises: New Realities for Developing Countries; Rajneesh Narula & John H. Dunning http://www. un. org/