Domestic advantage in emerging markets (EM)

Domestic companies in emerging markets (EM) use leverage to compete against Multi-national companies (MNC's). The advantage home grown companies has is its understanding of the native market. Emerging markets acquire labor at cheaper rates, knowing the native recipes and traditions, and use loyalty as a selling point. The same way companies in America advertise the "made in the USA", or "buy local" marketing slogans to foster pride and guilt in consumers other countries do it too. Domestic brands use heritage knowledge to identify with the consumer market. According to Kotabe & Helsen, 2014 "Looking at China, the fastest growing EM, local champions throw their weight in dozens of industries". The advantage MNC has in recruiting talent from emerging markets is in the ability to pay workers above what they would receive working for a company in their home land. MNC also invest large sums of dollars in an undersaturated market if trade laws permit. Understanding emerging markets requires an understanding of the sophistication of its consumers. MNC should know; if consumers buy brands or no name, new or used, and even market disposable income and per capita (Kotabe & Helsen, 2014). Reference Kotabe, M., & Helsen, K. (2014). Global marketing management (6th Ed.). New Jersey, NJ: John Wiley