[Solution]International Business Theory and Strategy

Answer FOUR questions. 1. Based on Dunning’s Eclectic (‘OLI’) Paradigm, to what extent can ownership/firm-specific advantages explain why multinational corporations enter foreign markets through foreign…

Answer FOUR questions.

1. Based on Dunning’s Eclectic (‘OLI’) Paradigm, to what extent can ownership/firm-specific advantages explain why multinational corporations enter foreign markets through foreign direct investment?

2. Critically explain the concept of a nonmarket environment and how multinational enterprises may formulate nonmarket strategies, according to Bach and Allen, to enhance their competitiveness in that environment.

3. Critically evaluate the potential of foreign direct investment to contribute to economic ‘development’ in the host countries of their investments.

4. Critically assess the advantages and disadvantages of ‘bilateral investment treaties’ for foreign investors and host country governments.

 5. Explain the development of ‘firm specific advantages’ in understanding the outward foreign direct investment of firms from emerging economies.

 6. Adopt Hamel’s view on competitive collaboration to discuss the motivation of international strategic alliances.

7. Based on Rugman and Verbeke’s view on regional strategy, assess whether multinational enterprises are globally or regionally based in terms of breadth and depth of market coverage.
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