1. MNCs face a fundamental strategic dilemma when competing internationally. Explain the...

Question

1. MNCs face a fundamental strategic dilemma when competing internationally. Explain the complexities of the global-local dilemma facing multinational organizations. Compare and contrast local-responsiveness solution and global integration solution. Do not forget to mention multidomestic strategy, transnational strategy, international strategy, and regional strategy in your answer.
Your response should be at least 200 words in length.

As a major form of political risks, the world has witnessed the impact of terrorism on the operations of multinationals, especially within the past decade. Explain the different kinds of political risks and tools multinationals use in fighting them.
Your response should be at least 200 words in length.

Explain basic and generic strategies multinationals use in competing locally and internationally. How can generic strategies strengthen competitive advantage in multinational business?
Your response should be at least 200 words in length.

Some MNCs operate a single business. However, many MNCs have more than one type of business strategy. What are the basics of multinational diversification? How do they choose their mix of different businesses? Explain both related and unrelated diversification.
Your response should be at least 200 words in length.

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Sanchita · Accepted Answer

Assignment 
1.  From the United Kingdom’s extraordinary decision to withdraw from the European Union to significant and unpredictable United States’ Presidential Election that shocked many political pundits in 2016 has been filled with uncertainty. Economic, Political and Environmental issues are gradually becoming the revoking point of International business leaders as well as Governments.
While the international marketplace becomes more and more interconnected & accessible with every passing day, the risks of conducting business in an international scenario need to be taken seriously. Expanding business in the international circuit means tremendously expanding its customers base & potentially expanding profits. The most chronic crisis faced by the multinational corporations is Country Risks(i.e., it relates to the inherent risk of accumulating financial risks that are influenced by a nations’ specific political, economic & social events. It is necessary to calculate all sort of risks while making direct overseas investment)& Political Risks(i.e., any sort of political atrocities and unrest such as wars & protests, can become a major drawback for such multinational organizations) (Husted et al., 2007). 
It must also be remembered that all political risks are quintessentially the country risks but all country risks need not be political in nature, and sovereign risks arises from financial points i.e., bonds & bank loans. For instance, Greek’s financial tumultuous financial crisis in 2015 was result of high sovereign risk. 
The following are the methods curb these risks are:-
· Control of crucial Corporate Element;
· Joint venture;
· Local debts, etc.
Multinational organizations also use Multi-Domestic Strategies(to achieve huge response by customizing any product to match a nation’s conditions); Transnational Strategies(a combination of Global, International & Multinational strategies and it works through coordination, combination & interdependence for the benefit of the organization at the centre and the local subsidiaries.)
       2. The main risk/crisis faced by multinational organizations are Political Risks. These risks mainly concern all sort of wars and atrocities which happens within a country but has a global effect.

1. MNCs face a fundamental strategic dilemma when competing internationally. Explain the complexities of the global-local dilemma facing multinational organizations. Compare and contrast...

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