This module focuses on the decision-making process of multinational enterprises (MNEs). We will study the drivers of globalization and MNEs' value chain, and we will develop a framework for making strategic and operational decisions about foreign investments. In entering a new foreign market, the key decision is to select the most appropriate entry mode: when should an MNE consider exporting, when should it license, and when invest? When is it appropriate to pursue a joint venture with a foreign partner? How does the firm's value chain fit into this? How should businesses deal with the governments of their host countries?
This module will cover a string of practical challenges for multinational enterprises. There is a multitude of instruments through which governments try to influence the location decisions of MNEs, including subsidies, tax breaks, industrial parks, and special customs zones. MNEs are also concerned with differential tax rates across countries and the domestic treatment of foreign income. Governments also impact MNEs through their intellectual property right regimes. Further sessions will address strategies for international marketing, choosing organizational structures, and managing human resources abroad. This module will also touch on ethical issues such as labour standards, sustainability concerns, and corruption.