• Essay Task

Critically discuss how institutions influence Multinational Enterprises’ (MNEs) choices for their international operations and strategies.

• Instructions:
• The work should demonstrate critical analysis and evaluation.
• There should be an evidence of a wide reading to demonstrate your understanding of the theoretical underpinnings of your discussion (i.e. institutional theory, the meaning and the different types of institutions, the impact of different types of institutions on MNEs’ decisions and options etc).
• You can focus on one aspect related to the operations of MNEs (such as FDI location, foreign market entry modes, etc) and then study the impact of institutions on this aspect/s. Instead, you can talk broadly about the impact of institutions on MNEs’ choices and strategies and use aspects of their operations as examples.
• Few references are given below, but this is not an exhaustive list, you need to do your own literature review.
• Please take care on the presentation of your submission. Appendices should be used for essential information only and should be clearly referenced in the text.
• Penalties will apply for exceeding word count.
• Presentation:

• Examples of the work that should be used to address this essay:

Your essay should be based on academic articles similar to those listed below. Some IB books can be useful, such as the first item:

North, D. (1990), “Institutions, Institutional Change, and Economic Performance,” NewYork, Norton.
Meyer, K. E., Estrin, S., Bhaumik, S. K., & Peng, M. W. (2009). Institutions, resources, and entry strategies in emerging economies. Strategic Management Journal, 30(1), 61-80.
Peng, M. W., Wang, D. Y., & Jiang, Y. (2008). An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies, 39(5), 920-936.
Lucke, N., & Eichler, S. (2016). Foreign direct investment: the role of institutional and cultural determinants. Applied Economics, 48(11), 935-956.
Gaur, A. S., Kumar, V., & Singh, D. (2014). Institutions, resources, and internationalization of emerging economy firms. Journal of World Business, 49(1), 12-20.
Holmes, R. M., Miller, T., Hitt, M. A., & Salmador, M. P. (2013). The interrelationships among informal institutions, formal institutions, and inward foreign direct investment. Journal of Management, 39(2), 531-566.
Buchanan, B. G., Le, Q. V., & Rishi, M. (2012). Foreign direct investment and institutional quality: Some empirical evidence. International Review of Financial Analysis, 21(1), 81-89.
Bénassy-Quéré, A., Coupet, M., & Mayer, T. (2007). Institutional Determinants of Foreign Direct Investment. World Economy, 30(5), 764-782.