The Challengers

The world is making way for the ambitions, innovations and confidence of multinational companies based in emerging economies, reports the Economist. Examples include Tata Group, owner of Tata Motors, which just released a tiny fuel-efficient car that costs a mere US $2500; Embraer of Brazil, the world's third-largest aircraft company; and Wipro, Infosys and Tata Consulting Services, which have turned information-technology outsourcing into a global consulting enterprise. The new multinationals enjoy low costs and fast-growing markets at home, while practicing flexibility in new economies with all their challenges. One challenge: Mid-level managers based in Europe or the US earn more than senior executives based in India, Brazil or China. Specializing for vast numbers of customers in emerging markets – building efficient cars and other products, offering patient customer service, and investing in regional products, standardized systems and state-of-the-art information technology – has paid off for the new multinationals. – YaleGlobal