Critically discuss how home and host countries institutions can influence and determine Multinational Enterprises choices of international operations and their locations.
Instructions:
Word limit: 1500 words.
The discussion should be supported by examples from advanced economies as well as from emerging markets (EMs).
The work should demonstrate critical analysis and evaluation.
There should be an evidence of a wide reading to demonstrate your understanding of the theoretical underpinnings of your discussion.
Penalties will apply for exceeding word count.
Few references are given below, but this is not an exhaustive list, you
need to do your own literature review..
Aims of the module
The aim of the module is to provide students with the theoretical understanding of the relationship between two major themes in International Business: (i) the existence of differences in national business systems; and (ii) the present day character of processes of internationalisation and globalisation of economic and business activities. A major theme running through the module is the importance of knowledge for the understanding of the development and evolution of national business systems and international business.
Learning outcomes
On completion of this module, students should be able to:
Compare and contrast and critically analyse the institutional nature and structure of a number of business systems from a number of both developed and developing countries.
Explain and provide in-depth appraisal of recent trends in international trade and foreign direct investment (FDI).
Critically analyse various theoretical explanations of the internationalisation of firm activities and evaluate their relevance in todays context.
Explain the importance of knowledge in todays economy at both national and international level.
Here are some more examples of the type of studies that you should search for yourself :
Bnassy-Qur, A., Coupet, M., & Mayer, T. (2007). Institutional Determinants of Foreign Direct Investment. World Economy, 30(5), 764-782.
Bevan, A., Estrin, S. & Meyer, K. (2004), “Foreign Investment Location and Institutional Development in Transition Economies.” International Business Review, 13, No.1: pp. 43-64.
Buchanan, B. G., Le, Q. V., & Rishi, M. (2012). Foreign direct investment and institutional quality: Some empirical evidence. International Review of Financial Analysis, 21(1), 81-89.
Chen, C. (2012), “Foreign Direct Investment in China: Location Determinants, Investor Differences and Economic Impacts,” Cheltenham,UK, Edward Elgar Pub.
Gaur, A. S., Kumar, V., & Singh, D. (2014). Institutions, resources, and internationalization of emerging economy firms. Journal of World Business, 49(1), 12-20.
Groh, A. P. and M. Wich (2012). “Emerging Economies’ Attraction of Foreign Direct Investment.” Emerging Markets Review13(2): 210-229.
Holmes, R. M., Miller, T., Hitt, M. A., & Salmador, M. P. (2013). The interrelationships among informal institutions, formal institutions, and inward foreign direct investment. Journal of Management, 39(2), 531-566.
Meyer, K. E., Estrin, S., Bhaumik, S. K., & Peng, M. W. (2009). Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal, 30(1), 61-80.