International businesse in emerging market Assignment - 1

International businesse in emerging market - Assignment Example The emerging market accelerated growth of its international business, which were up 4% LFL. In June 2014, the company planned to invest $20 billion in a gas-fired power complex in Vietnam. In its planning, the company recognized the need to create a partnership with a host well-known company in Vietnam in an attempt to sell its products in this emerging market. It, therefore, collaborated with Vietnam’s state-owned petrol Vietnam. It erected two power plants with a capacity to produce between 6000 and 6500 megawatts of power. In this perspective, the company focuses on capturing the gas and oil market in Vietnam through provision of cheaper prices and diversified oil and gas brands (Regester & Larkin, 2014). It proposed to position its operation in 700 locations and several retail operations. In addition, the strategy aims to present its brands closer to consumers and therefore making its brand most accessible products in Vietnam. Vietnam is one of the top five developing nations in Asia. It has a robust middle class, a crucial driver of economic expansion in a developing country. It is valid to argue that middle class mainly supports the policy change significantly to the success of the country and in supporting capitalist democracy. The country has the fastest-growing middle class in the whole Southeast Asia and is expected to double in size from 12 million (2014) to 32 million by 2020. Generally, Exxon Mobil was experiencing various impending challenges in Vietnam such as complex foreign investment laws, corruption in infrastructure projects, lack of comprehensive and transparent legal system and restricted land usage rights (Plunkett, 2014). However, Vietnam is currently undergoing trade liberalization through negotiations toward a free agreement with the European Union (Van Dyke, et al., 2014). The negotiation presents viable market to Exxon Mobil since its