Over the last two decades, the world has witnessed the fall of the Soviet bloc, an increase in the number of failed states, the rise of international terrorism, trade liberalization coupled with the formation of new trade blocs, a series of devastating financial crises, the expansion of the Internet, the beginnings of a green revolution, a spike in migration, and a drastic geographical reconfiguration of production. While these changes represent major shifts and discontinuities in the global political and economic landscape, looking towards the future the one that is likely to bring about the deepest consequences is the rise of the new multinationals from upper-­middle-income, emerging, and developing countries. The international growth of these new multinationals marks the coming of age of a tier of countries that have hitherto being passive players in global economic, financial, and political affairs. It is hard to underestimate the importance of this phenomenon as one industry after another feels the impact of the increasing size, sophistication, and geographical reach of the new multinationals, challenging our assumptions regarding the division of labor between developed and emerging countries.

While research on the new multinationals has blossomed in parallel with the phenomenon itself, little has been said or documented about the capabilities that the new multinationals bring to the table. Often dismissed as creatures of protected home markets, beneficiaries of subsidized lending, and technology laggards, the new multinationals have been the subject of multiple jokes, condescending comments, and dire predictions of ultimate failure.