BUSM114 INTERNATIONAL BUSINESS ANALYSIS SEMESTER A COURSEWORK

1 SEMESTER COURSEWORK QUESTION
International Business (IB) is about business or firms engaging in intercontinental (crossborder) economic activities and trading transactions and/or the activity of doing business
abroad. The most important participants in International Business are known as MultiNational Enterprises (MNE) which-apart from making daily headlines-are firms participating
in foreign direct investment by directly investing in, controlling and managing value- added
activities in other countries.
The empirical evidence have identified two core theories which explain the evolution and
the development of international business activity: (i) the Institution-Based Theory (IBT)
and (ii) the Resource-Based Theory (RBT).
Required:
What is the role played by (i) the Institution-Based Theory (IBT) and (ii) the Resource-Based
Theory (RBT) when it comes to MNE’s or IB’s in general “evolution”?
What we mean by “evolution” of the MNE or International Business?
• Foreign Direct Investment
• Offshoring and Outsourcing
You may illustrate your answer by referring to some specific examples
The word count for this assessment is 2,500 (this is the maximum limit). This does not include
reference lists, bibliographies, tables, figures and captions.

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