MNB 3701 ASSIGNMENT 02 MEMO DUE 20 MARCH 2023

As protectionist barriers crumble in emerging markets around the world, multinational companies are rushing in to find new opportunities for growth. Their arrival is a boon to local consumers, who benefit from the wider choices now available. For local companies, however, the influx often appears to be a death sentence. Accustomed to dominant positions in protected markets, they suddenly face foreign rivals wielding a daunting array of advantages: substantial financial resources, advanced technology, superior products, powerful brands, and seasoned marketing and management skills. Often, the very survival of local companies in emerging markets is at stake. Research Objectives • To identify and evaluate the determinants of the success or failure of operating the MNE in the African context. • to accomplish and to draw implications for management action from evaluation of the determinants of the success or failure of operating an MNE. Literature Research The world is big and, when it comes to business, everyone is intertwined. Whether or not you produce and sell goods internationally, global business impacts every organization. “Everybody has to care about macroeconomics and the global economy,” says Harvard Business School Professor Forest Reinhardt in the online course Global Business. So, how can you, as a business owner, manager, or employee, stay informed and find your organization’s place in the global market? International business is the production and sale of goods and services between countries. There are several ways a business can be international: • It produces goods domestically and sells both domestically and internationally. • It produces goods in a different country but sells domestically. • It produces goods in a different country and sells both domestically and internationally. Background Businesses typically produce goods overseas due to lower labor costs or taxes, and they sell products and services in the global market because of the high potential for gaining a larger audience, new customers, and increased revenue. “Although international business is extremely exciting, it can also be risky,” Reinhardt says in Global Business. Because every country has its own government, policies, laws, cultures, languages, currency, time zones, and inflation rate, navigating the global business landscape can be difficult. Guidelines for preparing and writing up the section on formal institutional frameworks. Formal institutions represent the foundation of different industries and the government directives of a country, so they could have a great impact on global entry strategies. These formal institutions influence how well multinational companies can develop and execute their global entry strategies. If MNEs pass over the institutional pressures from host country governments and NGOs,1 they may delay acquiring legitimacy or face operational risk. In addition, subsidiaries should take into account not only the institutional environment of the host country but also the institutional pressures from the home country. Multinational companies maintain production and marketing operations in different countries. In each country, the business may oversee multiple offices that function through several branches and subsidiaries.