MNC Challenges, Entry Modes and Host Country Analysis

Assessment Task: International Business Essay

Course Code and Name: BUSM1222 – International Business Assessment Name: International Business Essay Type: Individual Weight: 60% Due Date: Sunday, 18 October 2026, at 11:59 pm Length: 2,000–2,500 words

Learning Objectives Assessed: This assignment assesses Learning Objectives 1 and 2.

Graduate Outcomes Supported: On successful completion of this course you will be able to:

1. Apply theoretical and technical knowledge to provide in-depth specialist and professional advice related to international business operations and strategy, cross-cultural management and ethical standards.
2. Critically analyse and synthesise information to formulate effective business decisions.

Aims and Background Appropriate decisions on internationalisation strategy emerge when firms conduct solid analysis of both their own capabilities and target market conditions. This assessment lets you examine a real-world multinational corporation (MNC) and apply core international business concepts to its operations. You will evaluate the firm’s profile, host-country influences, chosen entry strategies, and broader societal impacts while sharpening analytical and problem-solving skills.

Task The central question for this essay is: “What are the key challenges for an MNC in the international business arena?”

Step 1 Select one multinational corporation from the Forbes Global 2000 list of top multinational performers (updated 2025/2026 version).

Step 2 Choose one country (other than the MNC’s home country) where the company has made foreign direct investment. Address the following questions in your essay.

Part 1: Analysis of Your Multinational Corporation (MNC) Question 1: Explain your company’s profile as an MNC. Include its country of origin, history, scale of operations (revenue, employees, global presence), and evidence of multinational activity. Question 2: Use one key learning point from the topic on globalisation of business to analyse the company’s current status.

Part 2: Host Country Analysis Focus on one factor (political economy or sociocultural) from the host country that shapes the firm’s internationalisation. Question 3: What are the key country or regional factors that affected the firm’s choice of this market? Why did they matter? Question 4: Apply one theory covered in the course (for example, Uppsala internationalisation theory, the Eclectic paradigm, or Porter’s Diamond theory) to support your analysis.

Part 3: Foreign Entry Strategies Question 5: Identify the main entry strategy (or strategies) the company used in the chosen country. Draw on academic journal articles to define the strategy, outline its benefits and pitfalls, and discuss specific constraints the firm faced. Combine scholarly sources with company-specific information to evaluate real-world limitations.

Part 4: MNC and Its Impacts Question 6: Referring to the UN Global Compact Principles and/or Sustainable Development Goals, identify one priority area the MNC must address in its current and future operations. Explain why this area matters, drawing on relationships between MNCs and stakeholders.

Guidelines

• The assignment tests mastery of international business concepts and analytical depth; avoid purely descriptive writing.
• Keep the introduction short (maximum 200 words) and focus on analysis.
• Do not use PESTEL, SWOT, or five-forces frameworks.
• Maintain an international business perspective; avoid marketing-oriented analysis.
• Use recent data (2023 onwards where possible) and support all claims with credible academic and company sources.
• Submit via the designated portal with the standard Assessment Declaration.

Sample Essay Excerpt – Toyota Motor Corporation in the United States Toyota Motor Corporation originated in Japan and has grown into one of the world’s largest automakers since its founding in 1937. The company now maintains manufacturing plants, research centres, and sales networks across more than 170 countries with annual revenue exceeding $250 billion and a workforce of over 370,000. Globalisation of business enabled Toyota to achieve economies of scale through standardised lean production systems while adapting models to regional preferences. In the United States, political stability, large consumer market size, and favourable trade policies formed the primary attractions for investment. The Eclectic paradigm explains Toyota’s decisions by highlighting ownership advantages in hybrid and fuel-efficient technology, location advantages from access to North American demand, and internalisation benefits that justified building wholly owned facilities rather than relying solely on exports. Toyota primarily employed wholly owned subsidiaries combined with strategic joint ventures, which granted strong operational control yet introduced constraints such as substantial capital outlay and ongoing pressure to localise supply chains amid trade tensions. Looking ahead, Toyota should prioritise environmental sustainability principles from the UN Global Compact and SDG 13 on climate action because its manufacturing footprint and vehicle emissions directly affect long-term stakeholder relations and regulatory compliance.

Deepening Insights into Entry Mode Constraints

Academic literature reinforces that wholly owned subsidiaries deliver high control but expose firms to elevated financial and political risks. A recent study on emerging-economy multinationals notes that even established players such as Toyota must continually adjust to host-country pressures on local content and technology transfer (Do, 2026, https://doi.org/10.1186/s13731-026-00641-w). Real-world data from Toyota’s US operations shows that currency fluctuations and shifting tariffs have occasionally reduced expected returns on these heavy investments. Industry reports further illustrate how supply-chain localisation requirements added layers of complexity that pure exporting modes would have avoided.

Addressing Sustainability Priorities in MNC Operations

Many students overlook how sustainability commitments now shape entry mode viability and ongoing performance. Toyota’s focus on hybrid and hydrogen technologies aligns with SDG 13 yet still faces scrutiny over full lifecycle emissions and battery mineral sourcing. Comparative analysis with competitors reveals that firms integrating UN Global Compact principles early often secure better government incentives and consumer loyalty. Additional research highlights the growing investor demand for transparent ESG reporting, which can influence future capital access and brand reputation in developed markets. Students preparing similar essays should therefore examine not only initial entry decisions but also how evolving stakeholder expectations reshape long-term strategy.

References

(APA 7th Edition) Bıçakcıoğlu-Peynirci, N. (2023). Internationalization of firms: A systematic literature review and future directions. Journal of Business Research, 162, Article 113908. https://doi.org/10.1016/j.jbusres.2023.113908

Do, T. T. H. (2026). Theoretical approach to motives of emerging-economy multinational companies: The case of Cong in Vietnam. Journal of Innovation and Entrepreneurship, 15, Article 36. https://doi.org/10.1186/s13731-026-00641-w

Narula, R. (2024). Eclectic paradigm. In Encyclopedia of international business (pp. 245–258). Edward Elgar Publishing.

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1. Write a 2,000–2,500-word individual international business essay for BUSM1222 that analyses an MNC’s profile, host-country factors, entry strategy, and sustainability responsibilities using theories such as the Eclectic paradigm or Uppsala model.
2. Complete this 2,000–2,500-word assessment task by selecting a Forbes-listed MNC, evaluating its foreign investment in one country, and addressing six structured questions on internationalisation challenges and impacts.
3. Prepare an evidence-based international business essay examining an MNC’s operations, entry modes, and alignment with UN Global Compact principles.

 Assignment (Week 8 / Assessment 2 – Group Case Study Report) In Week 8 you will submit a group report (2–3 students) of 3,000 words that compares two MNCs operating in the same emerging market. The report requires application of two internationalisation theories, evaluation of cross-cultural management challenges, and recommendations for future strategy. Include a 10-minute recorded presentation and peer-review component. Focus on current geopolitical and sustainability issues. Submit by Sunday, 15 November 2026.