| Summary: | 碩士 === 國立臺灣大學 === 企業管理碩士專班 === 97 === This research analyzes FDI flows and cross border M&A of emerging markets to understand their status in international investment. The results show that outward FDI’s actual amount and its proportion to the world are both growing. The idea that only advanced countries are able to invest globally is breaking down. Companies from emerging markets like Tata and Lenovo had made cross-border M&A in developed countries. Tata Motors acquired Jaguar and Land Rover brands in 2007, besides acquisitions, Tata Motors had launched the world’s cheapest car “Tata Nano” in 2008. Another company in Tata group, Tata Steel, had acquired the sixth largest steel maker in the world, Corus Steel of UK, in 2007. Lenovo is another example from emerging market; Lenovo had acquired IBM PC division in 2005. These acquisitions raised people’s curiosity about emerging markets’ ability in international M&A. Emerging markets used to be low cost production sites for developed countries, now they are ambitious to acquire foreign assets.
Sub-prime mortgage crisis happened in 2008 reduced developed economies’ economic power and M&A cases, with the increasing financial strength of developing economies, a higher proportion of world cross-border M&A is carried out by them. Outward foreign investment of emerging markets started at earlier stage of development challenges the theory of investment development path (IDP). During the transformation of emerging markets, countries should build up competitive advantages and expect to get stronger in next economic boom.
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