Multinationals
A Complete Course Handbook
Globalizing business · Formal and informal institutions · Firm resources · Investing abroad
and the OLI paradigm · Entry strategies · Competitive dynamics · Global growth · Organising
the MNE
Rania El Ghalbzouri
Multinationals and European Institutions — KU Leuven, MBA Bridging Programme
Rebuilt from the compact exam handbook. Every chapter, table, mock-exam signal and exam-focus box is
preserved, with the frameworks drawn out as figures.
Rania El Ghalbzouri — Multinationals Page 1
,Contents
Chapter 1 — Globalizing Business ................................................................................................ 5
1. Key definitions ........................................................................................................................ 5
2. Opening case: Adidas ............................................................................................................ 6
3. The European and global context ......................................................................................... 6
4. The unified framework............................................................................................................ 7
5. Three views on globalization ................................................................................................. 8
6. The global economic pyramid ............................................................................................... 9
Exam focus ................................................................................................................................... 9
Chapter 2 — Formal Institutions: Political, Economic and Legal Systems ............................ 10
1. The three pillars of institutions ........................................................................................... 10
2. Political systems ................................................................................................................... 11
3. Varieties of capitalism — LME versus CME ....................................................................... 12
4. Legal systems ....................................................................................................................... 13
5. Key debates ........................................................................................................................... 13
6. Case applications ................................................................................................................. 14
Exam focus ................................................................................................................................. 14
Chapter 3 — Informal Institutions: Analyzing Culture .............................................................. 15
1. Hofstede's five dimensions ................................................................................................. 15
2. Belgium versus the Netherlands ......................................................................................... 16
3. Meyer's eight scales — the Culture Map ............................................................................ 17
4. Gelfand's cultural tightness–looseness ............................................................................. 18
5. Religion, language and cultural clusters ........................................................................... 19
6. Debates: ethics, corruption and WEIRD ............................................................................. 19
Exam focus ................................................................................................................................. 20
Chapter 4 — Firm Resources: Competitiveness and Growth................................................... 21
1. Resource classification ........................................................................................................ 21
2. Capabilities ............................................................................................................................ 22
3. The value chain (Porter) ....................................................................................................... 22
4. The VRIO framework............................................................................................................. 23
5. Outsourcing, offshoring and reshoring ............................................................................. 24
6. Case applications ................................................................................................................. 24
Exam focus ................................................................................................................................. 25
Chapter 6 — Investing Abroad Directly: Modes and Theories ................................................. 26
1. FDI: definition and types ...................................................................................................... 26
2. Alternatives to FDI: contractual modes.............................................................................. 27
3. The OLI paradigm (Dunning) ............................................................................................... 27
4. Institutions and FDI .............................................................................................................. 29
5. Internationalization process models .................................................................................. 29
Exam focus ................................................................................................................................. 31
Chapter 11 — Starting International Business ........................................................................... 32
Rania El Ghalbzouri — Multinationals Page 2
, 1. Non-equity modes in detail .................................................................................................. 32
2. The Uppsala model: the knowledge–commitment cycle .................................................. 33
3. The network internationalization model ............................................................................. 33
4. Born globals and international new ventures.................................................................... 34
5. Institutions and early internationalization ......................................................................... 34
6. Debate: internationalization in the digital age ................................................................... 34
Exam focus ................................................................................................................................. 35
Chapter 12 — Foreign Entry Strategies ...................................................................................... 36
1. Why: the four strategic objectives of FDI........................................................................... 36
2. Where: location advantages and disadvantages .............................................................. 37
3. When: first-mover versus late-mover ................................................................................. 37
4. How: equity modes of entry ................................................................................................. 38
5. Institutions and entry strategy ............................................................................................ 39
6. Debates: scale of entry and acquisition types .................................................................. 40
7. Case applications ................................................................................................................. 40
Exam focus ................................................................................................................................. 41
Chapter 13 — Competitive Dynamics.......................................................................................... 42
1. The AMC framework and competitive strategies .............................................................. 42
2. Competition and collusion ................................................................................................... 43
3. The Herfindahl–Hirschman Index........................................................................................ 44
4. EU competition policy and merger control ........................................................................ 45
5. Case: AB InBev / SABMiller ................................................................................................. 46
6. Anti-dumping and patent races ........................................................................................... 46
7. Closing case and debate: Brussels versus Google .......................................................... 47
Exam focus ................................................................................................................................. 47
Chapter 14 — Global Growth Strategies: Partnerships and Acquisitions .............................. 48
1. Competitive advantages of the global firm ........................................................................ 48
2. The AAA typology (Ghemawat) ........................................................................................... 48
3. Growth paths ......................................................................................................................... 49
4. Mergers and acquisitions..................................................................................................... 50
5. The M&A graveyard .............................................................................................................. 51
6. Institutions governing acquisitions .................................................................................... 51
7. Debates .................................................................................................................................. 52
8. Case applications ................................................................................................................. 52
Exam focus ................................................................................................................................. 53
Chapter 15 — Organizing and Innovating in the MNE ............................................................... 54
1. The fundamental tension ..................................................................................................... 54
2. The integration–responsiveness framework ..................................................................... 55
3. Organizational structures .................................................................................................... 56
4. Subsidiary roles .................................................................................................................... 57
5. Knowledge management in the MNE .................................................................................. 57
6. Institutions, VRIO and debates............................................................................................ 59
Rania El Ghalbzouri — Multinationals Page 3
, Exam focus ................................................................................................................................. 60
Exam Preparation .......................................................................................................................... 61
1. The two pillars across all chapters ..................................................................................... 61
2. Key framework connections ................................................................................................ 62
3. How to structure open-ended answers .............................................................................. 62
4. The thirteen common traps.................................................................................................. 63
5. Must-know numbers ............................................................................................................. 64
6. Professor-specific emphasis ............................................................................................... 64
7. Practice questions with full explanations .......................................................................... 65
8. Open-question templates ..................................................................................................... 67
Rania El Ghalbzouri — Multinationals Page 4
A Complete Course Handbook
Globalizing business · Formal and informal institutions · Firm resources · Investing abroad
and the OLI paradigm · Entry strategies · Competitive dynamics · Global growth · Organising
the MNE
Rania El Ghalbzouri
Multinationals and European Institutions — KU Leuven, MBA Bridging Programme
Rebuilt from the compact exam handbook. Every chapter, table, mock-exam signal and exam-focus box is
preserved, with the frameworks drawn out as figures.
Rania El Ghalbzouri — Multinationals Page 1
,Contents
Chapter 1 — Globalizing Business ................................................................................................ 5
1. Key definitions ........................................................................................................................ 5
2. Opening case: Adidas ............................................................................................................ 6
3. The European and global context ......................................................................................... 6
4. The unified framework............................................................................................................ 7
5. Three views on globalization ................................................................................................. 8
6. The global economic pyramid ............................................................................................... 9
Exam focus ................................................................................................................................... 9
Chapter 2 — Formal Institutions: Political, Economic and Legal Systems ............................ 10
1. The three pillars of institutions ........................................................................................... 10
2. Political systems ................................................................................................................... 11
3. Varieties of capitalism — LME versus CME ....................................................................... 12
4. Legal systems ....................................................................................................................... 13
5. Key debates ........................................................................................................................... 13
6. Case applications ................................................................................................................. 14
Exam focus ................................................................................................................................. 14
Chapter 3 — Informal Institutions: Analyzing Culture .............................................................. 15
1. Hofstede's five dimensions ................................................................................................. 15
2. Belgium versus the Netherlands ......................................................................................... 16
3. Meyer's eight scales — the Culture Map ............................................................................ 17
4. Gelfand's cultural tightness–looseness ............................................................................. 18
5. Religion, language and cultural clusters ........................................................................... 19
6. Debates: ethics, corruption and WEIRD ............................................................................. 19
Exam focus ................................................................................................................................. 20
Chapter 4 — Firm Resources: Competitiveness and Growth................................................... 21
1. Resource classification ........................................................................................................ 21
2. Capabilities ............................................................................................................................ 22
3. The value chain (Porter) ....................................................................................................... 22
4. The VRIO framework............................................................................................................. 23
5. Outsourcing, offshoring and reshoring ............................................................................. 24
6. Case applications ................................................................................................................. 24
Exam focus ................................................................................................................................. 25
Chapter 6 — Investing Abroad Directly: Modes and Theories ................................................. 26
1. FDI: definition and types ...................................................................................................... 26
2. Alternatives to FDI: contractual modes.............................................................................. 27
3. The OLI paradigm (Dunning) ............................................................................................... 27
4. Institutions and FDI .............................................................................................................. 29
5. Internationalization process models .................................................................................. 29
Exam focus ................................................................................................................................. 31
Chapter 11 — Starting International Business ........................................................................... 32
Rania El Ghalbzouri — Multinationals Page 2
, 1. Non-equity modes in detail .................................................................................................. 32
2. The Uppsala model: the knowledge–commitment cycle .................................................. 33
3. The network internationalization model ............................................................................. 33
4. Born globals and international new ventures.................................................................... 34
5. Institutions and early internationalization ......................................................................... 34
6. Debate: internationalization in the digital age ................................................................... 34
Exam focus ................................................................................................................................. 35
Chapter 12 — Foreign Entry Strategies ...................................................................................... 36
1. Why: the four strategic objectives of FDI........................................................................... 36
2. Where: location advantages and disadvantages .............................................................. 37
3. When: first-mover versus late-mover ................................................................................. 37
4. How: equity modes of entry ................................................................................................. 38
5. Institutions and entry strategy ............................................................................................ 39
6. Debates: scale of entry and acquisition types .................................................................. 40
7. Case applications ................................................................................................................. 40
Exam focus ................................................................................................................................. 41
Chapter 13 — Competitive Dynamics.......................................................................................... 42
1. The AMC framework and competitive strategies .............................................................. 42
2. Competition and collusion ................................................................................................... 43
3. The Herfindahl–Hirschman Index........................................................................................ 44
4. EU competition policy and merger control ........................................................................ 45
5. Case: AB InBev / SABMiller ................................................................................................. 46
6. Anti-dumping and patent races ........................................................................................... 46
7. Closing case and debate: Brussels versus Google .......................................................... 47
Exam focus ................................................................................................................................. 47
Chapter 14 — Global Growth Strategies: Partnerships and Acquisitions .............................. 48
1. Competitive advantages of the global firm ........................................................................ 48
2. The AAA typology (Ghemawat) ........................................................................................... 48
3. Growth paths ......................................................................................................................... 49
4. Mergers and acquisitions..................................................................................................... 50
5. The M&A graveyard .............................................................................................................. 51
6. Institutions governing acquisitions .................................................................................... 51
7. Debates .................................................................................................................................. 52
8. Case applications ................................................................................................................. 52
Exam focus ................................................................................................................................. 53
Chapter 15 — Organizing and Innovating in the MNE ............................................................... 54
1. The fundamental tension ..................................................................................................... 54
2. The integration–responsiveness framework ..................................................................... 55
3. Organizational structures .................................................................................................... 56
4. Subsidiary roles .................................................................................................................... 57
5. Knowledge management in the MNE .................................................................................. 57
6. Institutions, VRIO and debates............................................................................................ 59
Rania El Ghalbzouri — Multinationals Page 3
, Exam focus ................................................................................................................................. 60
Exam Preparation .......................................................................................................................... 61
1. The two pillars across all chapters ..................................................................................... 61
2. Key framework connections ................................................................................................ 62
3. How to structure open-ended answers .............................................................................. 62
4. The thirteen common traps.................................................................................................. 63
5. Must-know numbers ............................................................................................................. 64
6. Professor-specific emphasis ............................................................................................... 64
7. Practice questions with full explanations .......................................................................... 65
8. Open-question templates ..................................................................................................... 67
Rania El Ghalbzouri — Multinationals Page 4
