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2 You have been engaged as a sole consultant by a large manufacturing focal firm in Ghana planning to undertake a foreign direct investment. The
2 You have been engaged as a sole consultant by a large manufacturing focal firm in Ghana planning to undertake a foreign direct investment. The Board has been in a protracted debate on the inherent risks in the choice of a target country in Europe but lack the competence, expertise and knowledge in identifying and evaluating the potential risks and the usefulness of going international. They have asked you to develop a paper for the consideration of the board spelling out the potential risks and how to possibly mitigate them. For the purpose of clarity you are to name the proposed target European country in your evaluation and report. Also provide an opinion or recommendation to the Board. The board has proposed the structure below for your presentation 1. An executive Summary 2. Introduction/ Background/ Terms of Reference 3. The Internal Market Dynamics and the Pull and Push Factors 4. The Inherent Risks In The Target Market In Europe 5. Strategies For Mitigating the Identified Risks 6. Conclusions and Opinion/ Recommendations To The Board (3.0 Marks) (3.0 Marks) (3.5 Marks) (4.0 Marks) (3.0 Marks) (3.5 Marks) Page 4 of 8 (5.0 Marks) QUESTION 3 (i) Using FDI-Based Explanations, discuss how MNEs Gain and Sustain International Competitive Advantage. (10 Marks) (ii) How relevant are the following Global Sustainable Competitive Advantage listed below to focal firms; 1. Efficiency 2. Flexibility 3. Learning
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