Emerging Market companies such as India's Ranbaxy Laboratories and Hong Kong-based HSBC Bank may have a better springboard for going global than multinationals and firms based in rich countries, says McKinsey principal Jayant Sinha. In his February 2006 McKinsey Quarterly article entitled: "Global Champions from Emerging Markets", Sinha argues that the tough terrain of those companies' native countries hones skills in operating successfully in diverse markets.
IFC's half-century worth of experience in helping emerging market firms go global seems to support that view. In addition, recent research shows that in recent years “south-to-south” foreign direct investment – investment from a company in one developing country into another - has been growing five times faster than “north-to-south” investment from advanced economies into the developing world. For more on "south-to-south" investment trends, click here.
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