Evolving MNE(2)

Evolving MNE(2) - The Evolving MNE MOTIVATIONS MEANS AND...

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The Evolving MNE MOTIVATIONS, MEANS, AND MENTALITIES
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Why Evolve??? What are some reasons for businesses to expand abroad?
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Abroad = Opportunity New markets Access to resources Lower costs New sources of information Expansion of strategic capabilities What does this mean???
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Internationalization Increasing involvement internationally!
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What is the MNE 1. Define MNE - is it the same as being international? 2. How did it start? 3. How does an MNE impact us? 4. Are MNE’s typically large? 5. What makes up a company’s “value added” contribution to GDP
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What is the MNE International business has been ever present. Most notably, however, was the 19th century Industrialization led to growth which led to investment in less- developed areas.
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MNE Definition IB is different from MNE MNE = substantial substantial direct investment in foreign countries AND active active management of offshore assets not just trade, not just sourcing, not just licensing, etc. MNE is a phenomena - since WWII it has greatly evolved since!!
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UN Definition of MNE In 1973 = an enterprise as one "which controls assets, factories, mines, sales offices, and the like in two or more countries." By 1984 § comprising entities in two or more countries regardless of legal form and fields of activities of both entities § operates under a system of decision making permitting coherent policies and a common strategy through one or more decision-making centers § the entities are so linked, by ownership or otherwise, that one or more of them may be able to exercise a significant influence over the activities of the others, in particular to share knowledge, resources, and responsibilities.
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UN Definition of MNE Enterprise comprising of active entities in two or more countries Operates under a system of coherent policies and common strategy Linked by ownership and shares knowledge, resources, and responsibilities
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MNE is. .. ACTIVE, COORDINATED MANAGEMENT ACTIVE, COORDINATED MANAGEMENT of operations located in different countries strategic and organizational integration
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http://money.cnn.com/magazines/fortune/global500/2011/full_list/101_200.html
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This note was uploaded on 02/10/2012 for the course IBA number taught by Professor Staff during the Fall '10 term at Temple.

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Evolving MNE(2) - The Evolving MNE MOTIVATIONS MEANS AND...

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