Essay
MNG4804 POE 2025
- Institution
- University Of South Africa (Unisa)
Essay of 19 pages for the course International Business - MNG4804 at Unisa (MNG4804 POE 2025)
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MNG4804 POE 20250612521185/0717513144/0680538213
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THE TASK CONSISTENT WITH THEORY OF INTERNATIONAL BUSINESS
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0612521185/0717513144/0680538213
Introduction
Due to globalisation, technological advancements, and the interdependence of trade and
financial networks, the dynamics of international business and global economics have
undergone significant change in recent decades. South Africa and other developing countries
face both the benefits and challenges brought forth by these developments. Four key areas of
international business are thoroughly examined in this Portfolio of Evidence (POE), which
offers a thorough examination of the strategies and effects that influence international
economic participation and decision-making. With a focus on South Africa, Question 1
explores the nuanced impacts of globalisation on developing countries. Both the positive
effects—like improved market access and technology dissemination—and the negative ones—
like economic dependence and social injustice—are assessed in the analysis (Azam, 2019).
These ideas are supported by specific examples that show how globalisation affects South
Africa's socioeconomic structure. The performance and utility of Africa's four primary financial
markets—South Africa, Nigeria, Egypt, and Kenya—during the past three decades are
examined in Question 2. This analysis highlights the connection between robust financial
institutions and sustainable development by contrasting market performance with overall
economic growth. The importance of each market in fostering regional and continental
economic development is highlighted by a comparative analysis. Question 3 looks at how
businesses expand internationally and explores the methods available to businesses looking to
expand internationally. The discussion highlights the strategic importance of various business
models, such as joint ventures, direct exports, franchising, and fully owned subsidiaries. This
investigation uses MTN's entry into the Iranian mobile market as a case study, concentrating
on the chosen approach to market entry in light of theories of international business such as
Transaction Cost Analysis and Dunning's Eclectic Paradigm. The operational complexities of
multinational corporations are examined in Question 4, with a focus on how different
accounting standards and control systems across countries affect decision-making. In the role
of a fictitious CEO, the response outlines methods for coordinating financial reporting and
putting strong control mechanisms in place across a range of regulatory environments.
Transparency, compliance, and corporate governance are discussed in order to ensure
operational effectiveness and adherence to international best practices.
QUESTION 1
, MNG4804 POE 2025
0612521185/0717513144/0680538213
Evaluate and extensively assess the impact of globalisation on developing countries such
as South Africa. Give practical scenarios to substantiate your viewpoint. (20)
For developing nations like South Africa, globalisation has a complicated and
multidimensional effect that brings with it both chances and difficulties (Barauskaite &
Streimikiene, 2021). It is described as the transition to a global economy that is more
interconnected and interdependent, including the globalisation of production and markets.
Positive Impacts of Globalization:
Economic Growth
By increasing international trade and cross-border investment, globalisation can boost
economic growth in developing countries, which could account for over 60% of global
economic activity by 20307. Increased incomes and job creation can result from this, as
demonstrated by the growth of India's software sector (Collins, 2021).
Foreign Direct Investment (FDI)
FDI inflows into developing nations have increased markedly, becoming a significant stimulus
for economic growth. China has been a major recipient of FDI. This investment can bring
capital, technology, and expertise, fostering economic development.
Access to Markets
Globalization provides developing countries with access to larger global markets for their
products and services. This can boost export revenues and promote industrial development
(Gomera & Mafini, 2020). For example, a developing country can export agricultural products
to developed markets, thereby increasing its revenue and creating jobs.
Technological Advancement
Globalization facilitates the transfer of technology and knowledge from developed to
developing countries. This can enhance productivity and innovation. For instance, access to
new technologies can improve agricultural practices, or the manufacturing of goods.
Reduced Poverty
Globalisation has the potential to alleviate poverty. Over the past three decades, the proportion
of the global population living in extreme poverty has significantly decreased10. Increased
agricultural trade may help alleviate poverty even further. The World commerce Organisation
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