Explanation of Japanese Electronic MNE's Global Expansion Pa

             Explanation of Japanese Electronic MNE's Global Expansion Pattern
             During the late 1970's leading up to the 80's and early 90's, Japanese electronic firms expanded their organisation vigorously. As well as domestic expansion, the firms also spread globally in all regions. However, a discernable pattern can be found among the relationship between the nature of the activities and the target countries. In this essay, I will first assess the possible expansion strategies that were possible to the Japanese multinational enterprises (MNE's) and suggest my personal recommendation. This will be done through the use of several frameworks, most notably the OLI (ownership, location, and internalisation) model to describe the firm's motives for expansion, and Porter's Diamond of National Advantage and the PEST framework to explain the benefits of different regions. Then I will draw from the article "Global Location Behaviour and Organizational Dynamics of Japanese Electronics Firms and Their Impact on Regional Economies" by Masahisa & Ryoichi for supporting empirical evidence.
             The firms in question are nine Japanese electronic companies; Hitachi, Matsushita Electric, Toshiba, NEC, Mitsubishi Electric, Fujitsu, Sony, Sanyo Electric, and Sharp providing a broad range of electronics products, from consumer electronics to industrial systems to electronic devises.
             To examine the motives for MNE's expansion, we can utilise the OLI framework. The OLI model looks at the ownership advantages, location-specific advantages, and internalisation advantages that can be gotten out of foreign direct investment (FDI) to overseas countries. Ownership looks at firm-specific characteristics that might justify the move abroad (such as competitive advantage over competitors in host country through strong branding), location-specific advantages look at the benefits the target countries present to the MNE, an...

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Explanation of Japanese Electronic MNE's Global Expansion Pa. (1969, December 31). In MegaEssays.com. Retrieved 09:45, September 13, 2025, from https://www.megaessays.com/viewpaper/27471.html