Introduction

Question 1

What is an MNE?

Answer 1

It has facilities and other assets in at least one country other than its home country

They usually have factories in different countries and a centralised head office where they coordinate global management

Question 2

How have the best performing companies changed from 2013-2019?

Answer 2

Movement from petroleum; Royal Dutch Shell, Exxon Mobil, BP to technology Apple, Microsoft, Amazon

Question 3

Where the global 500 companies largely located?

Answer 3

130+ in the US
70 in Japan
75 in China
25 in Britain

Question 4

How is China demanding the luxury market?

Answer 4

China luxury delivering 65% of 2018-2025 global growth

2020-25 growth rate 6% companied to other worldwide consumers 0 2%

Question 5

What does the globalising economy consist of?

Answer 5

• New competitors
• Disintegrating boraders
• CSR
  and ethics
• Growing trade and investment
• Global product/customers
• Internet and IT

Question 6

What are the external challenges and internal challenges related to the globalising economy?

Answer 6

External

• Foreign law and regulations
• Tax competition
• Political instability

Internal

• International organisational structure
• Communication difficulties and cultural differences
• Cost reduction and local responsiveness

Question 7

How does being locally responsive reduce tension?

Answer 7

It makes local customers and governments happy but increases costs

Question 8

How can an MNE be managed strategically?

Answer 8

Formulation of strategies and design of management systems that take advantage of International opportunities and respond to threats and challenges