1. Multinational business
Tutorial week 1

2. Agenda Revision Practice questions
Case study: Whirlpool’s Dramatic Turnaround Through Internationalization

3. Revision questions
What do you understand by “globalisation of economic activity”?
What role do multinational enterprises play in the globalisation of economic activity?
Why do firms pursue internationalisation strategies?
Discuss the main drivers of globalisation.
Discuss the view that globalisation weakens national sovereignty, promotes growth that is detrimental to the earth’s environment, and skews income distribution.
Briefly discuss the different operating modes used by firms when entering foreign markets.

4. Role of MNCs in Globalisation
Balance of Payments
Employment
Technology transfer
Social responsibility
Government control
Competition among local and foreign brand

5. Why companies engage in international business?
Seek opportunities for growth through market diversification
Earn higher margins and profits
Gain new ideas about products, services and business methods
Better serve key customers that have relocated abroad
Be closer to supply sources
Gain access to lower cost or better-value factors of production
Develop economies of scale in sourcing, production, marketing and R&D
Challenge international competitors more effectively or stop the growth of competition in the home market
Invest in a potentially rewarding relationship with a foreign partner

6. The forces driving globalisation
Increase in and expansion of technology
Market Liberalisation and adoption of free market trade
Industrialization and economic development
Growing consumer pressures
Increased global competition
Changing political situations
Integration of world financial markets

7. Modes of operation in international business
Importing and exporting
Tourism and transportation
Licensing and franchising
Turnkey operations
Management contracts
Direct and portfolio investment (including joint ventures)

8. Assignment
Comment on the future prospects of international business and globalisation.
What do you say about Nepal with respect to globalisation?