• Semester 1 (External)

Synopsis

In this unit students will be exposed to three dimensions in the study
of  multinational  enterprise (MNE).  First, an understanding  of  the
operations  of  the  MNE  requires  that  the  significance  of  their
involvement  in  international business be  first  established.   This
background  exploration yields some insights into the  development  of
theoretical  underpinnings to the MNE. Second, after these foundations
have  been formed, the dynamics of the MNE and the ensuing development
of  corporate  strategies  can be appreciated.   Finally,  the  global
politics  of the MNE must be exposed, if this mode of organisation  is
to be included as a possible form of internalisation.

More  specifically,  the existence of transaction  costs  in  business
exchange   provides  the  focus  for  identifying  the   multinational
enterprise  as an organisational form which resolves the  problems  of
coordinating   its   various  activities  through   the   process   of
internalisation.  As such, the multinational enterprise is depicted as
a  hierarchy, in the context of the markets - hierarchies paradigm.  A
selection  of  current  organisational  forms,  their  attributes  and
strategic implications will be explored as will the broader process of
internationalisation of the firm into the global economy.