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IB M6 ,M7 & M8 Final Discussion & Assignment Overview Readings Read Chapters 15 & 16 Learning Activities Written Assignment # 4: Foreign Markets Entry Decision for a Singaporean Firm Discussions Discussion Topic: Should Countries Limit Foreign Control of Key Industries? Ch 15 - Direct Investment and Collaborative Strategies Objectives         Clarify why companies may need to use modes other than exporting to operate effectively in international business Comprehend why and how companies make foreign direct investments Understand the major motives that guide managers when choosing a collaborative arrangement for international business Define the major types of collaborative arrangements Describe what companies should consider when entering into arrangements with other companies Grasp why collaborative arrangements succeed or fail See how companies can manage diverse collaborative arrangements Appreciate how growth in project size and complexity will require future collaboration Chapter Overview Although most companies operating internationally would prefer exporting to other market entry modes, there are circumstances in which exporting may not be feasible. In these cases, companies may engage in direct investment in other countries, or enter markets through various collaborative strategies such as joint ventures and alliances. Collaborative strategies allow firms to spread both assets and risk across countries by entering into contractual agreements with a variety of potential partners. Chapter Fifteen first discusses reasons for not exporting and then explores the motives that drive firms to engage in noncollaborative and collaborative arrangements, as well as the various types of possible arrangements, including foreign direct investment, licensing, franchising, joint ventures, and equity alliances. It goes on to explore the various problems that may arise in FDI and collaborative ventures and concludes with a discussion of the various methods for managing these evolving arrangements. Ch 16 - The Organization of International Business OBJECTIVES      Profile the evolving process of organizing a company for international business Describe the features of classical structures Describe the features of neoclassical structures Discuss the systems used to coordinate and control international activities Profile the role and characteristics of organization culture CHAPTER OVERVIEW Structuring organizations is a complex task made even more complex when those organizations span national boundaries. Chapter Sixteen examines the ways in which firms group their operations in order to implement their strategies and control processes, as well as the role of organizational culture. The chapter begins with a discussion of the principles of organization and then explores the dynamics of various organizational structures. It considers the trade-offs between centralizing and decentralizing the decision-making process and discusses the various mechanisms that can be used to help ensure control measures are in fact implemented. The chapter concludes with an examination of organization in special situations such as acquisitions and shared ownership as well as the role of legal structures. M6 Discussion - Should Countries Limit Foreign Control of Key Industries? Read the following point and counterpoint carefully. In light of your understanding of the reading materials for the course, especially chapter 15, what point of view would you agree with and why? Please explain. It is expected that your explanation will include evidence of adequate and appropriate background reading. You must also provide evidence for the argument you are making, by citing publications in the field (i.e. from the textbook). Citation includes summarizing what you have read or directly quoting an appropriate extract from a source. Whether you summarize or quote, you must acknowledge the source, by providing the author’s name and the publication details - both in your text and also in a list of References, or Bibliography, at the end of your comments. POINT: Countries should limit foreign control of key industries in order to protect their economic and security interests, especially in key industries such as transportation, mass media, and energy. History has shown that home governments have used powerful foreign companies to influence policies in the countries where they operate, and that foreign companies have used their home governments as instruments to improve their interests in a country. Whenever a company is controlled from abroad,