Chapter 2
The Multinational enterprise (MNE)
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.2
The Multinational enterprise (MNE)
• Objectives
• The nature of multinational enterprises
• Strategic management and multinational enterprises • A framework for global strategies: the FSA/CSA matrix. Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.3
Objectives
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Describe the characteristics of MNEs.
Explain the internationalization process.
Explain why firms become MNEs.
Discuss the strategic philosophy of these firms.
Introduce a country/firm framework for examining a firm’s competitiveness.
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.4
The Multinational enterprise (MNE)
• A company headquartered in one country but with operations in one or more other countries.
• MNEs often downplay the fact that they are foreign-held. Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.5
The nature of MNEs
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.6
Table 2.1
The world’s largest 500 multinational enterprises, 2007
Source: Authors’ calculations and adapted from Fortune, The Global 500, July 23, 2007
Alan M Rugman and Simon Collinson, International Business, 5th Edition, © Pearson Education Limited 2009
Slide 2.7
Characteristics of MNES
• Affiliates must be responsive to a number of important environmental forces, including competitors, customers, suppliers, financial institutions, and government.
• Draw on a common pool of resources, including assets, patents, trademarks, information, and human resources.
• Affiliates and business partners are