Lakshmi Mittal and the Growth of Mittal Steel

1. What forces drove Mittal Steel to start expanding across peopleal borders?
In the early 70s, what was then a family-owned firm was cosmos constrained by limited growth opportunities in its inborn country of India. Further it is identified that government regulations inhibited the go withs ability to spread out and improve amplification opportunities, and finally Mittal faced direct competition from a state-owned and unavowed manufacturing competitors.
2. Mittal Steel expanded into different nations through mergers and acquisitions, as irrelevant to greenfield investments. Why?
To be fair, the first expansion into foreign lands was a greenfield investment, establishing a steel-making plant from scratch in Indonesia in 1975, beyond that initially described FDI it was much more than cost utile to purchase the assets of already established distressed companies much more cheaply rather than to invest astronomic sums of capital and magazine in construction and customer base development in a foreign land as well as providing potential buffers to foreign protectionist pressures. Further many executives see FDI as a way of circumventing future trade barriers, additionally having a footprint in a foreign nation reduces be of doing business in that country from the perspective of transportation and merchandise costs.
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What receiptss does Mittal Steel bring to the countries that it enters? Are there any drawbacks to a nation when Mittal Steel invests there?
To fairly comment on the benefits that Mittal Steel bring to the countries that it enters you first must consider whether it is accounting entry a developed versus underdeveloped country. In underdeveloped countries in many instances there is a lack of technology and large MNEs (Multi-National Enterprises) such as Mittal Steel had become, can take back technology required to stimulate economic growth, in that nation where such technology did not exist. Labor will benefit as well since struggling companies in many countries would...If you hope to get a full essay, order it on our website: Orderessay



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