This page is a guide through a series of notes that establish frameworks for thinking about cultural, economic, political, and legal differences across countries.  (As geographers, we realize that there's substantial variation within countries, as well).  These notes also outline some ways to think about the interaction between MNCs and home and host countries.  "DRS" refers to the Daniels, Radebaugh, and Sullivan text.
 

DEFINITIONS

"Culture refers to the learned norms based on attitudes, values, and beliefs of a group of people....  Our emphasis will be on national cultures [as opposed to simultaneously operative cultures based on individuals class, ethnicity, or religion]"   (DRS, p.49)

Extraterritoriality:  attempts by the government of one country to have jurisdiction over the actions of companies in other countries, becuase those companies are owned by an entity in the first country (see DRS, p.174)

Intellectual property rights (IPR):  "ownership rights to intangible assets, such as patemts, trademarks, and know-how" (DRS p 752;  also see DRS p.108-110;  also see on-line notes)

national treatment:  the practice (and provision in most recent trade agreements) that imported products, foreign-owned businesses, and foreign investors will be subject to the same laws and priveleges as products, businesses, and investors based in the same country (see on-line notes)

Managing across Cultural Differences (DRS Ch.2; on-line notes)
DRS Ch.2 provides some examples and case studies of culutral issues occuring in international operations.

Managing in Different Political and Economic Environments (DRS Ch. 3;  on-line notes)
The opening case study for Ch.3 tries to characterize China's business environment and its implications for foreign-based companies operating there.

1. What are the alternative motivations for a company to engage in FDI?
2. Understand the balance-of-payments implications of inward FDI.
3. What are the potential losses to the origin (home) and destination (host) country of FDI?

• ****What do national (and provincial) governments want from inward FDI?  What do MNCs want from FDI?
• ****What circumstances gave the host-country government a strong negotiating position?
• ****What circumstances give the MNC a strong negotiating position?
• What kinds of things need to be negotiated between MNC and host-country government?