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MNB3702/201/1/2019Tutorial Letter 201/1/2019
Global Business Management
MNB3702
Semester 1
Department of Business Management
IMPORTANT INFORMATION
Please register on myUnisa, activate your myLife e-mail address and
make sure that you have regular access to the myUnisa module
website – MNB3702-2019-S1, as well as your group website.
Note: This is an online module and, therefore, necessary study materials are
available on the myUnisa platform. However, in order to support you in your learning
process, you will also receive some study material in printed format.
BARCODE
, MNB3702/201/1/2019
1. INTRODUCTION.................................................................................................... 3
2. COMMENTS ON ASSIGNMENT 01 ...................................................................... 3
3. CONCLUSION ..................................................................................................... 13
4. REFERENCE LIST…………………………………………….……………………….14
, MNB3702/201/1/2019
1. INTRODUCTION
This tutorial letter provides guidelines on how you were expected to answer the essay-
type questions contained in Assignment 01, as contained in Tutorial Letter 101/3/2019.
In this assignment, there are four comprehensive questions. The purpose of these
questions is to cover a wide range of material appearing in the prescribed journal
article, entitled: “Imperialism in Africa: a case of multinational corporations”. This
journal article was made available to you on myUnisa under Additional Resources.
In addition, you were required to use the conceptual background presented to you in
the prescribed textbook. We also suggested that you consult additional reading
material to boost your understanding of the determinants of investment patterns in
Africa.
As a part of your learning tools, you are urged to study the guidelines provided to you
in this tutorial letter, together with the extensive reference list appended to the
prescribed article. As you may have discovered, a single article or academic
publication is not, in any way, sufficient to teach or provide understanding of this
module. To that extent, you are urged to consult various publications (including
periodicals) on wide-ranging topics of relevance to the compartments of global
business management and praxis.
Should you have any academic-related queries, please take the liberty of contacting
the teaching team for this module.
2. COMMENTS ON ASSIGNMENT 01
This assignment comprises four essay-type questions. These questions have been
designed to give you maximum exposure to the material contained in the prescribed
article, as well as the major determinants of investment behaviour in Africa, as
documented in the prescribed textbook. In so doing, you are required to cover a
significant portion of the syllabus of the module in order to be able to complete the
assignment successfully. Please note that you are required to consult additional
academic material to enable you answer the questions and achieve the learning
outcomes related to the topics covered in this assignment. These questions must,
therefore, be treated as a thorough preparation for the forthcoming semester
3
, MNB3702/201/1/2019
examination. In the case of this assignment, you were required to answer all the
questions raised and to use as many practical examples as possible. Under
examination conditions, you will be expected to present your response to questions in
your own words, and to base your understanding of the topics being examined on their
concrete connotation. To justify your understanding of the topics being examined, you
are urged to use practical examples generously.
The proposed answers provided in this tutorial letter suggest an appropriate response
to the questions posed in this assignment. Please, be informed that you may contact
the teaching team if you require further explanation on the topics covered in the
assignments or the approach that we adopted in this tutorial letter.
Question 1: Critically identify the major determinants of the direction of
multinational corporation’s (MNC’s) investment, with specific reference to
African countries. 20 marks
To understand the major determinants of investment decisions by MNCs, various
factors have to be considered. However, keep in mind that the major driver of offshore
expansion is operational efficiency and ultimately, return on equity. To start with,
institutional determinants of investment patterns have been documented in extant
academic literature, apart from the international functional considerations at firm and
industry levels. The considerations for overlapping aspects of firm dynamics have also
been developed in recent studies. Given the far-reaching components of investment
drivers, this tutorial matter approaches the question in a concise stylised manner.
Conceptually, part 2 of the prescribed book (specifically chapters 5, 6 and 8) presents
academic evaluation of motivations for offshore investment in a broad manner. In
those chapters, an attempt was made to explore the generic academic tools that are
largely adopted to arrive at investment decisions, essentially in chapter 5. Therein, the
generic PESTEL approach was remodelled, and various others tools (e.g. BM, Ansoff
matrix, BS, RBV and others) were discussed. This was done to situate investment
decisions within theoretical processes, which in most cases, are largely adopted by
Western-originated MNCs when they consider expanding into neighbouring or
4
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