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BUSM114 International Business Analysis- Foreign Direct Investment

International Business (IB) is about business or firms engaging in intercontinental (crossborder) economic activities and trading transactions and/or the activity of doing business abroad. The most important participants in International Business are known as MultiNational Enterprises (MNE) which-apart from making daily headlines-are firms participating in foreign direct investment by directly investing in, controlling and managing value- added activities in other countries.

The empirical evidence have identified two core theories which explain the evolution and the development of international business activity: (i) the Institution-Based Theory (IBT) and (ii) the Resource-Based Theory (RBT).

Required:
 
What is the role played by (i) the Institution-Based Theory (IBT) and (ii) the ResourceBased Theory (RBT) when it comes to MNE’s or IB’s in general “evolution”? You may illustrate your answer by referring to some specific examples What we mean by “evolution” of the MNE or International Business?
  • Foreign Direct Investment
  • Offshoring and Outsourcing
  • Foreign Entry Strategies

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