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Guidelines for preparing and writing up the resource appraisal section (maximum 1000 Words): - In the preparing to write section, you will have to do your "homework" that includes the required readings. Then identify the resources and capabilities that the MNEs possess. You must then decide which of these resources is key in determining the success or failure of the MNE. Make use of the required article reading to develop a sound understanding of appraising resources: - Required article reading: Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management 17(1):99-120. - Pick no more than 4 to 5 key resources/capabilities to do the appraisal. - Then complete a resource appraisal of the KEY resources identified. You may use a table to give an overview of your assessment. However, you must indicate the strategic implications you have drawn from your resource appraisal. - Furthermore, you must clearly show the analysis process you have followed and the criterion you have used to do the resource appraisal. 7.2.6 Challenges trading internationally Important: - The two main theoretical perspectives, the institutions and resource-based were useful in answering the central question in this assignment: What determines the success or failure of MNE operating in different locations? The management implication on trading internationally is location, local and location, location is key to the success or failure of an MNE! - The main challenge for managers of MNEs trading internationally is their primary role to find a comparative advantage in a location, nurture, leverage a comparative advantage and then find new locations to exploit the comparative advantages the MNE possesses. - Required article reading: Grant, RM. 1991. Porter's 'competitive advantage of nations': an assessment. Strategic Management Journal 12(7):535-548 - It is important that you have a very good understanding of classic and modern trade theory before you start writing up this section. Guidelines for preparing and writing up the section on challenges trading internationally (maximum 1000 words): - In the preparing to write section, you will have to do your "homework" to evaluate whether the MNE possesses a comparative advantage in the location the MNE is operating and the resource endowments that underpin the comparative advantage. - You may also consider modern trade theories in doing your evaluation, as a comparative advantage is not fixed. Managers need to constantly monitor and nurture their current comparative advantage. - What implications for management action have you drawn from your evaluation of the MNE's challenges trading internationally? (20 Marks) Guidelines for preparing and writing up the section on foreign direct Investment (maximum 1000 words): - In preparing to write this section, you will have to do your "homework" in evaluating whether ownership, location, or internalisation advantages (see OLI paradigm) are key to the success of the MNE. If not, what other forms of the organisation other than FDI would you recommend? - Required article reading: Dunning, JH. 2000. The eclectic paradigm as an envelope for economic and business theories of MNE activity. International Business Review 9:163-190 - Furthermore, evaluate if the location advantages gained are a good fit for the strategic goals of the MNE. - Finally evaluate if institutional constraints and enablers governing FDI enhance the legitimacy of the MNE in the host country. - What implications for management action did you draw from your evaluation of FDI in the host country? 7.2.7 Conclusions - Update your conclusions section to reflect the work done in the second report. - In writing the conclusions section (maximum 750 words), you must show how the management problem identified connects to the conclusions derived from your evidence presented in the report. In other words, connect what you investigated with the facts found about the management problem identified. - The conclusions should close the "circle" of your report by connecting to the management problem initially presented