Global Financial Crisis and Opportunities for Emerging Global Giants
Just as automotive sales declined in recent years, many automakers have launched new models, which boosted global competition. Tamo is well positioned to weather the recent global financial crisis. First, it enjoys low-cost production capacity, party based on employing inexpensive labor in India. Second, the firm has significant experience in emerging markets, which are growing rapidly. By contrast, advanced-economy markets are largely saturated. Third, as the global financial crisis unfolded, many advanced-economy MNEs retrenched and focused more heavily on their home markets, especially in Europe and North America. For example, bankruptcy and restructuring led General Motors to refocus on the United States.