International Business Management

  • What are the key drivers of economic globalization? Use examples to support your explanation.

 

  • Explain three options that MNEs may use to capture the upside of market demand growth and mitigate the downside risk of market fluctuations. What are potential issues for MNEs to use real options’ theoretical view to increase their value?

 

  • The attractiveness of a country as a place for doing business depends on the benefits, costs, and risks it presents. If you were to start up a company in media industry, choose two countries, and discuss how they differ in terms of the benefits, costs, and risks of doing business.

 

 

  • What are Hofstede’ four cultural dimensions? Describe the meaning of each of them. Explain how they may influence individual preferences and business practices?

 

  • Dunning classified FDI into four types. What are they? Use at least one example for each type of FDI to explain the motives of the investment.

 

  • Intel invested a large FDI project in Costa Rica in 1997. Explain what the factors are that made Intel choose Costa Rica over its rivals, such as Indonesia, Thailand, Brazil, Argentina, Chile, and Mexico.

 

  • Consider a transnational strategy based on the generic international business model by Bartlett and Ghoshal (1989). Why would a firm choose this strategic alternative? Explain and critically discuss how other strategies will be changed to a transnational strategy from evolutionary model of the multinational enterprise (MNE) support with an example.

 

  • Many multinational enterprises (MNEs) choose to set up a joint venture with a local partner when they enter a new foreign market. Discuss the pros and cons of joint venture in comparison with wholly owned subsidiaries.

 

  • Multinational enterprises may pursue one of the four possible environmental strategic strategies: fictitious forcing, local compliance, standard extension and standard upgrading. Describe two of them; and explain for what kind of MNEs that they are most suitable for.