Saittakari, I., Ritvala, T., Piekkari, R., Kähäri, P., Moisio, S., Hanell, T., & Beugelsdijk, S. (2023).

Question 1

What is one of the main arguments made in the article regarding MNCs and political environments?

Answer 1

MNCs actively shape their political environments through corporate political activity and lobbying.

Question 2

The article identifies three major shifts in IB research. Which of the following is NOT one of them?
A) Expansion of MNC agency in shaping the political environment
B) Increased focus on artificial intelligence in business decisions
C) A wider diversity of actors in the business-government-society interface
D) Extension of analysis levels from national to sub- and supra-national levels

Answer 2

b.

Question 3

Which IB framework originally conceptualized political risk as an external locational factor?

Answer 3

Ownership-Location-Internalization (OLI) Paradigm

A classic IB framework by Dunning (1980) explaining why MNCs engage in FDI. The L (Location) component includes political risk, institutional quality, and regulatory environments. It originally treated these factors as external constraints.

Question 4

Wider Diversity of Actors in IB

Answer 4

Traditionally, IB research focused on bilateral MNC-government relations. Now, studies recognize that MNCs interact with local governments, NGOs, social movements, international organizations, and other stakeholders in shaping policies and regulations.

Question 5

Multi-Level Analysis in IB

Answer 5

IB research has shifted from focusing on country-level analysis to considering subnational (cities, regions) and supranational (EU, WTO) levels, recognizing that political and economic power is distributed across different scales.

Question 6

Political Corporate Social Responsibility (Political CSR)

Answer 6

This theory suggests that MNCs are political actors, shaping governance by setting global standards, influencing regulations, and filling governance gaps. It challenges the idea that only governments create policies.

Question 7

Political Geography in IB
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Answer 7

Back:
Unlike traditional IB research, political geography studies the political and ideological struggles over places. It sees cities, regions, and global value chains as spaces of economic and political contestation, not just locations for business.

Question 8

Jurisdiction Shopping

Answer 8

MNCs strategically choose host countries or regions based on regulatory benefits, tax advantages, and favorable political conditions rather than just economic incentives. This can influence policy-making across borders.

Question 9

Global Cities as Political and Economic Hubs

Answer 9

Global cities like New York, London, and Shanghai are no longer just economic hubs—they influence regulations, global governance, and MNC strategies. They play a growing role in international business beyond just location advantages.

Question 10

Which of the following factors is increasingly associated with globalization?

A) Increased national security.

B) Socio-economic inequality.

C) Decreased geopolitical tensions.

Answer 10

B

Question 11

What is the main difference in how international business (IB) and political geography view “location” for MNCs?

A) IB sees location as a measurable factor, while political geography sees it as a place with different social and political meanings.

B) Both view location as primarily a place for investment.

C) IB sees location as a political field, which can be shaped in its favor, while political geography sees it as a place with different social and political meanings.

Answer 11

C