Home Volume 13 No1 2023 Foreign Affiliated Enterprises in the Emerging Economies in Asia Pacific; Low Labor...

Foreign Affiliated Enterprises in the Emerging Economies in Asia Pacific; Low Labor Cost and Culture Shocks

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Michael Yemoh, National University of Samoa
Marie Passi-Westerlund, National University of Samoa

Abstract

In the most recent decades, we have seen a few competitive multinational organizations opening operations within the emerging economies in Asia Pacific. Unfortunately, some have had to close their operations after some time whilst others have been able to survive and thrive in the region. The emerging economies in Asia Pacific face material resource constraints which makes attracting, retaining, and sustaining foreign direct investments and globally competitive multinational organizations a very valuable contributor to their nations. Many of the economies have the competitive advantage of low minimum wages. However, these appear not to be enough to retain these multinationals. This report presents some considerations which makes the region that has a comparative competitive advantage of low minimum wages, not enough to attract, retain and sustain globally competitive multinationals.

Keywords: competitive advantage, emerging economies, foreign direct investments, low minimum wages

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