MNB3701 Assignment 02 Solutions Semester 2 2023

UNISA ASSIGNMENT SOLUTIONS SEMESTER 2 2023



MNB3701



GLOBAL BUSINESS MANAGEMENT IA

ASSIGNMENT 02 SOLUTIONS

UNIQUE NUMBER: 797280

SEMESTER 2 2023

DUE DATE: 07 AUGUST 2023


DISTINCTION GUARANTEED!

WHATSAPP 065 934 4052 FOR FURTHER ASSISTANCE. ALL MODULES ARE AVAILABLE

,TABLE OF CONTENTS


1. EXECUTIVE SUMMARY ..................................................................................... 3

2. LITERATURE SEARCH ...................................................................................... 4

3. BACKGROUND ................................................................................................... 5

4. FORMAL INSTITUTIONAL FRAMEWORKS ......................................................... 6

4.1 Overview ........................................................................................................... 6

4.2. Evaluation of the determinants to the success or failure of an MNE in a formal
institution and key implications for management action of formal institutions ......... 7

5. INFORMAL INSTITUTIONAL FRAMEWORKS ..................................................... 9

5.1. Overview .......................................................................................................... 9

5.2. Evaluation of the determinants to the success or failure of an MNE in an
informal institution and key implications for management action of informal
institutions ............................................................................................................. 11

BIBLIOGRAPHY ...................................................................................................... 15




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, 1. EXECUTIVE SUMMARY


Globalization has facilitated the growth of multinational enterprises (MNEs) in many
countries, including those in Africa (ILO, 2021). With the increasing presence of
MNEs in the African market, it is important to examine the factors that contribute to
their success or failure in the region.

This paper will discuss the Multinational Enterprises (MNE‟s) as well as the formal
and informal institutions and the frameworks that govern them. Peng and Meyer
(2019) explained that a multinational firm or MNE is an enterprise that engages in
foreign direct investment and owns and controls value adding activities in more than
one country.

The paper will continue to evaluate the aspects of the workings of formal and
informal institutions that are key to the success or failure of the MNE, among other
things, the main objective of this report Identify and evaluate the determinants of the
success or failure of operating the MNE in the African context.

Overall, the success and failure of a firm around the globe are, to a large extent, are
determined by its ability to understand and take advantage of the different rules of
the game. In other words, how firms play the game and win (or lose), at least in part,
depends on how the rules are made, enforced, and changed. This calls for firms to
constantly monitor, decode, and adapt to the changing rules of the game in order to
survive and prosper. As a result, such an institution-based view has emerged as a
leading perspective on international business. Here, I focus on formal institutions
(such as political, legal, and economic systems) whereas I will upload an article
concerning informal institutions.




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