Analyzing Global Economy & International Trade: IB Strategy & MNCs

This essay delves into the intricate relationship between the global economy and international trade, emphasizing the strategic importance of International Business (IB) concepts and theories for Multinational Corporations (MNCs). It integrates key IB concepts such as change, continuity, and causation to highlight how MNCs can develop effective strategies and critically analyze their operations. The essay further discusses Porter's Five Forces, examining the challenges and benefits that MNCs encounter within the global value chain, particularly focusing on inbound logistics and production. The analysis underscores the need for continuous innovation, skills development, and strategic resource allocation to enhance the competitiveness and sustainability of MNCs in the international market. The study concludes that leveraging Porter's value chain and fostering technological innovation are crucial for MNCs to thrive in the global business landscape. Desklib provides access to similar solved assignments.

Running head: Global Economy and International Trade
Global Economy and International Trade
Name of the student
Name of the University
Student ID
Course ID

1
Global Economy and International Trade
Table of Contents
Introduction................................................................................................................................2
Integration of IB concepts and theories.....................................................................................2
Demonstration of strategy and critical IB thinking....................................................................3
Discuss porter’s five forces and stating challenges and benefits that MNC receives from value
chain...........................................................................................................................................4
Conclusion..................................................................................................................................5
Reference list..............................................................................................................................6

2
Global Economy and International Trade
Introduction
The concept of the international trade and business is associated with the development
of strong strategies that will definitely increase the strategy allocation among the firms.
Through the development of better innovation, it is important to introduce better
technological innovations. Through the implementation of better business strategies, the
development of IB is becoming more prominent in nature. The main aims and objectives of
this study is to highlight the indulgence of concepts and strategies that will automatically
ignite MNC to minimise the challenges of porter’s five forces in order to enjoy the benefits.
The study will be significant in the sense that it will definitely increase the development of
the IB.
Integration of IB concepts and theories
In order to understand the importance of IB, it is important to understand the concepts
of IB that will help the development of better policies. The six key concepts of the IB are
change, continuity, causation, significance, perspectives. These six key concepts are helping
in the development of the international business. Through the development of these six
concepts, it is important for the policymakers to identify the development of better innovative
technologies that will make most of the MNC to serve in an effective manner.
Changes
Most of the MNC is inviting modern technologies to increase the probability of
retaining the changes. Through the development of modern technologies it is important for
the MNC to increase the development of the business by which the MNC will be able to
indulge the development of better human resources. According to Brannen, Piekkari & Tietze
(2017) most of the MNC is looking to bring the changes in both the skill up gradation
technologies of human resources and the technological up gradation of the process that will
be required to manufacture the products.
Continuity
This is one of the important thing for most of the MNC because of the fact that it will
be defining the sources of revenue collection. Through the development of big data analytics
and developed technologies most of the MNC is going to establish their position in the
market. The view of Buckley, Doh & Benischke (2017) clearly claims that most of the

3
Global Economy and International Trade
emerging economies MNC is one of the crucial for most of the study dealing with
international business. The development of internationalisation theory is going to increase the
development of the business as they will be able to increase the strong hold of their resources
as they will be able to operate on the base of the comparative advantages. Through the
development of the comparative advantages most of the MNC is trying to increase the
continuous of the strategy. This is important in the sense that continuing the required changes
that will make better innovation in the marketing of the products.
Causation
This is important in the sense most of case of MNC has been looking for the causation
to increase the development of the causation. Through the incorporation of the internalisation
theory, the development of the multi-talent hub or multi searching operation will definitely
increase the resources utilisation. Through the indulgence of better identification of the
resources, the development of better innovation is also required in the process utilisation.
According to Casson (2015) internationalisation theory helps most of the developed nations
will be helping the development of better innovation as most of the MNC believes in cross
border transfer of resources.
Demonstration of strategy and critical IB thinking
According to Chen, Ni, Chen, Collings, Wang & Guanacos (2017) the modern trade
and business are helping in the development of the modern trade through the development of
the wireless transmission. Through the development of the wireless technology. Trade is
happening among the MNC taking the help of the internet and the wireless technologies
through the development of better innovations. It is important for the companies dealing with
better innovation. Modern trade is using the modern tools and technologies and developing
modern goods and products. This is extremely important in the sense that using the modern
resources, it is extremely important to bring in innovations in all departments. According to
Cumming & Zahra (2016), the skills and potentiality of the entrepreneurs is important in
order to develop the skills and potentiality of the employees. Most of the MNC is bringing
strategies in the form of digital training process for the employees. The development of better
technologies in the form of digital learning process that will allow the employees to
interchange the knowledge or education with the employees of other countries. On the other
hand, the development of online performances management technologies will also help in the
development of employee satisfaction and the employers will also be able to increase their

4
Global Economy and International Trade
policies and strategies that will definitely increase the innovation technologies required for
the formation of policy. In order to increase the level of the innovation and the effectiveness
of these policies, it is important for the MNC to indulge transfer of skills so that the
designation can be easily determined. Through the development of internationalisation theory
most of the MNC do take the policy of outsourcing so that they can only focus on the
development of the products based on their comparative and opportunity costs. Through the
development of this things the companies will be able to introduce technologies that will
increase the skills of the employees. According to Doh (2017), it is important to bring in
continuous innovations in the research projects that will definitely increase the production
ability of the companies. Through the development of better innovations the companies are
investing heavily on the research so that they will be able to increase the production.
Discuss porter’s five forces and stating challenges and benefits that MNC receives from
value chain
Taking the help of porter’s five forces, the companies will be able to introduce the
risks and benefits that will allow the company to reimburse their technologies so that their
strategies can increase the development of the business. On the other hand, the development
of business in the international market will allow the development of the business. Through
the development of porter’s values chains it is possible to reintroduce the development of
better innovations.
Inbound logistics
Inbound logistics is one of the important thing that most of the MNC is looking forward to
increase the storage of the goods and services. This is important in the sense that through the
development of better inbound logistics, the companies will be able to highlight the
development of technologies that will be helping in the development of inventories. Building
inbound logistics will be helping the development of better innovations in the process and
they will be able to introduce their comparative advantages.
Production
Production is importance in the sense that it will definitely increase the reputation of
the company in the international market. Through the opinion of Hassanpour, Wübben,
Dekorsy & Kurkoski (2017) the development of the advanced level of the industry and
bringing the industry out of the bottlenecks in important. This is important for the

5
Global Economy and International Trade
development of better algorithms that will increase the production ability. Through the
development of advanced level of algorithms it is important to bring advanced logistics that
will bring the technologies.
In order to identify the main challenges and the benefits that are mainly helpful for the
development of advanced technologies (Kim & Aguilera, 2016). It is important to introduce
the development in the benefits in the form of better comparative advantages and will be able
to produce goods in an effective way. They will be able to highlight the innovations in the
technologies and they will be able to identify the stakeholders that are mainly using the
development of better information. Another benefits that will be associated with this thing is
that they will be able to bring in identification of the skills and technologies so that the roles
and responsibilities can be identified.
One of the biggest challenge is that the cost is associated with the project. The firms
will be able to highlight the development of costs that will be allow the development of
international business.
Conclusion
The whole study is concluding to the fact that the development of the international
business is closely related with the development of better innovative technologies. Through
the utilisation of the porter’s values chain, most of the MNC is looking to develop the
innovations technologies that will boost up the development of the skills and potentiality of
the human resources. On the other hand, the development of innovations in the technologies
that will increase the production of the goods that will improve the position of the companies
in the international market.

6
Global Economy and International Trade
Reference list
Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical
challenge to MNC theory and performance. In Language in international
business (pp. 139-162). Palgrave Macmillan, Cham.
Buckley, P. J., Doh, J. P., & Benischke, M. H. (2017). Towards a renaissance in international
business research? Big questions, grand challenges, and the future of IB
scholarship. Journal of International Business Studies, 48(9), 1045-1064.
Casson, M. (2015). Coase and international business: the origin and development of
internalisation theory. Managerial and Decision Economics, 36(1), 55-66.
Casson, M., Porter, L., & Wadeson, N. (2016). Internalization theory: An unfinished
agenda. International Business Review, 25(6), 1223-1234.
Chen, X., Ni, W., Chen, T., Collings, I. B., Wang, X., & Guanacos, G. B. (2017). Real-time
energy trading and future planning for fifth generation wireless
communications. IEEE Wireless Communications, 24(4), 24-30.
Cumming, D. J., & Zahra, S. A. (2016). International business and entrepreneurship
implications of Brexit. British Journal of Management, 27(4), 687-692.
Doh, J. (2017). Phenomenon-based research in international business: making IB relevant
again. AIB Insights, 17(2), 14-16.
Hassanpour, S., Wübben, D., Dekorsy, A., & Kurkoski, B. M. (2017, May). On the relation
between the asymptotic performance of different algorithms for information
bottleneck framework. In 2017 IEEE International Conference on Communications
(ICC) (pp. 1-6). IEEE.
Kim, J. U., & Aguilera, R. V. (2016). Foreign location choice: Review and
extensions. International Journal of Management Reviews, 18(2), 133-159.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
23-34.

7
Global Economy and International Trade
Picciotto, S. (2017). Rights, responsibilities and regulation of international business.
In Globalization and International Investment (pp. 177-198). Routledge.
Richter, N. F., Sinkovics, R. R., Ringle, C. M., & Schlaegel, C. (2016). A critical look at the
use of SEM in international business research. International Marketing Review, 33(3),
376-404.