MNB3701
Assignment 2 Semester 2 2025
Unique Number: 884546
Due Date: September 2025
INTRODUCTION
International business plays a crucial role in shaping the strategies of multinational
enterprises (MNEs) as they engage with foreign markets under diverse institutional and
cultural conditions. The study of global business requires an understanding of both formal
institutions such as political, legal, and economic frameworks, and informal institutions such
as culture, values, and social norms (Meyer & Peng, 2019:32). These institutional factors
strongly influence trade, investment, and production decisions. The two cases presented in
this assignment, namely China’s growing investment footprint in Africa and Apple’s reliance
on manufacturing partnerships in China, highlight how multinational firms balance
opportunities and risks in global operations. The China–Africa case demonstrates how
comparative advantage, resource access, and the eclectic paradigm shape foreign direct
investment strategies in developing economies, while the Apple case illustrates the
challenges of outsourcing, supply chain efficiency, and responsible business conduct. By
applying theoretical frameworks from international business, this assignment critically
evaluates how firms pursue global competitiveness, manage risks, and respond to ethical
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
INTRODUCTION
International business plays a crucial role in shaping the strategies of multinational
enterprises (MNEs) as they engage with foreign markets under diverse institutional
and cultural conditions. The study of global business requires an understanding of
both formal institutions such as political, legal, and economic frameworks, and
informal institutions such as culture, values, and social norms (Meyer & Peng,
2019:32). These institutional factors strongly influence trade, investment, and
production decisions. The two cases presented in this assignment, namely China’s
growing investment footprint in Africa and Apple’s reliance on manufacturing
partnerships in China, highlight how multinational firms balance opportunities and
risks in global operations. The China–Africa case demonstrates how comparative
advantage, resource access, and the eclectic paradigm shape foreign direct
investment strategies in developing economies, while the Apple case illustrates the
challenges of outsourcing, supply chain efficiency, and responsible business
conduct. By applying theoretical frameworks from international business, this
assignment critically evaluates how firms pursue global competitiveness, manage
risks, and respond to ethical considerations in complex international environments.
QUESTION 1
1.1
Using the institution-based view, explain how formal and informal institutions
influence foreign investment decisions in African markets. Give two examples
for each institution.
The institution-based view emphasises that business decisions are shaped by the
―rules of the game‖ in a given environment. These rules are divided into formal
institutions, laws, regulations, and rules created by governments or authorised
bodies and informal institutions, norms, values, cultures, and ethics that are
embedded within societies. Both play a critical role in shaping foreign direct
investment (FDI) decisions in African markets because they reduce uncertainty and
signal what is legitimate or acceptable behaviour for firms (Peng & Meyer, 2019:34)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 2 Semester 2 2025
Unique Number: 884546
Due Date: September 2025
INTRODUCTION
International business plays a crucial role in shaping the strategies of multinational
enterprises (MNEs) as they engage with foreign markets under diverse institutional and
cultural conditions. The study of global business requires an understanding of both formal
institutions such as political, legal, and economic frameworks, and informal institutions such
as culture, values, and social norms (Meyer & Peng, 2019:32). These institutional factors
strongly influence trade, investment, and production decisions. The two cases presented in
this assignment, namely China’s growing investment footprint in Africa and Apple’s reliance
on manufacturing partnerships in China, highlight how multinational firms balance
opportunities and risks in global operations. The China–Africa case demonstrates how
comparative advantage, resource access, and the eclectic paradigm shape foreign direct
investment strategies in developing economies, while the Apple case illustrates the
challenges of outsourcing, supply chain efficiency, and responsible business conduct. By
applying theoretical frameworks from international business, this assignment critically
evaluates how firms pursue global competitiveness, manage risks, and respond to ethical
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
INTRODUCTION
International business plays a crucial role in shaping the strategies of multinational
enterprises (MNEs) as they engage with foreign markets under diverse institutional
and cultural conditions. The study of global business requires an understanding of
both formal institutions such as political, legal, and economic frameworks, and
informal institutions such as culture, values, and social norms (Meyer & Peng,
2019:32). These institutional factors strongly influence trade, investment, and
production decisions. The two cases presented in this assignment, namely China’s
growing investment footprint in Africa and Apple’s reliance on manufacturing
partnerships in China, highlight how multinational firms balance opportunities and
risks in global operations. The China–Africa case demonstrates how comparative
advantage, resource access, and the eclectic paradigm shape foreign direct
investment strategies in developing economies, while the Apple case illustrates the
challenges of outsourcing, supply chain efficiency, and responsible business
conduct. By applying theoretical frameworks from international business, this
assignment critically evaluates how firms pursue global competitiveness, manage
risks, and respond to ethical considerations in complex international environments.
QUESTION 1
1.1
Using the institution-based view, explain how formal and informal institutions
influence foreign investment decisions in African markets. Give two examples
for each institution.
The institution-based view emphasises that business decisions are shaped by the
―rules of the game‖ in a given environment. These rules are divided into formal
institutions, laws, regulations, and rules created by governments or authorised
bodies and informal institutions, norms, values, cultures, and ethics that are
embedded within societies. Both play a critical role in shaping foreign direct
investment (FDI) decisions in African markets because they reduce uncertainty and
signal what is legitimate or acceptable behaviour for firms (Peng & Meyer, 2019:34)
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
