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International business strategy

Question 1

(a)    What are the major risks of internationalisation for firms? Clarify your answers with appropriate examples.
(b)    Foreign Direct Investment (FDI) is both expensive and risky yet many organisations prefer FDI over either exporting or licensing. Discuss with examples the various firm-level (organisational) motives for FDI

Question 2
(a)    Explain the three basic decisions that firms contemplating foreign expansion must make. Use examples where possible to clarify your answers
(b)    Outline the various roles of a foreign subsidiary and discuss the organisational and host government factors that can determine the evolution of foreign subsidiaries?
Question 3

(a)    Explain the key tenants of institutional theory. Illustrate how institutions impact corporate decision-making in international business
(b)    Discuss the pressure for local responsiveness for firms in choosing a global strategy. What are the strategic implications for a firm in responding to this pressure?

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