multinational firm considering a global expansion plan
Econ : Final Paper Guidelines
Imagine that you are a manager in a multinational firm considering a global expansion plan. You are required to make a presentation to the senior management team arguing the reasons for your proposed strategy.
Pick an industry/product (Chipotle, Victoria’s secret, Doritos, etc) and a country or region and analyze the factors that you need to take into consideration before you decide to enter that market.
This will include firm level factors, country level factors, and why you would recommend exports vs. FDI vs. licensing your technology to a local firm in the host country.
Be sure to clearly identify the business goals and objectives you desire to accomplish before you start your analysis.
Draw on the academic research in the area and explain how you will go about incorporating those ideas into your analysis.
You need to explain very clearly using economic tools why each factor you have included in your analysis is important and how it affects the objectives you are maximizing. You will need to use at a minimum 4 concepts we have studied in this class in your analysis. In addition, you will be drawing upon economic concepts you have studied during the program.
– Internalization (Important)
– MNE Strategies (Export, FDI, Licensing options) -> home centralization (exporting), Foreign centralization (importing), replication
– Competitive interaction
– Exchange rate risk
– Trade protection and Trade rules
– Quotas, Tariffs, non tariff distortion, Transportation costs
– Regional Integration
– Environmental Adaptation: Topography, Climate, Population
– Developmental Adaptations: Income effects, Education effects
– Cultural Adaptation: Traditions, Conformism
Please include your references and acknowledge all sources clearly.
A paper that references only writings in the popular press will not constitute an acceptable paper.