Marketing Strategies of Foreign Multinationals towards the Majority in a Developing Country: A Case of Government Indirect Expropriation in Sri Lanka

摘要

Examining the role of foreign multinational corporations (FMNC) in developing economies is part of a larger discussion on globalization. The current discussion looks at one aspect of the larger globalization topic, specifically, marketing strategies by FMNCs towards the poor majority. Using HSBC in Sri Lanka over a three year period (2006-2008) as a case example we explore a bank's strategy to introduce a product designed for the majority of the population and the subsequent government intervention (e.g., indirect expropriation) by the host-country. By focusing on the institutional aspects of this case study we draw attention to underlying complex dynamics of foreign multinationals entering into markets with the global poor. The results of our qualitative findings suggest that under ideal conditions a smaller developing nation inherently lacks the infrastructure and political influence to effectively manage FMNC. Concluding that well-intentioned corporate imperialism by FMNCs is a significant threat to smaller developing nations, and indirect expropriation is a useful tool for governments to intervene. India will not be a helpless partner in her own exploitation and foreign domination.