Reference no: EM132870195

Based on Opening Case: Wal-Mart in Germany (page 153) of Mike W.Peng - Global Strategy answer these questions:

1.During the 1990s, many North American, European, and Asian MNEs set up operations in Mexico, tapping into its location-specific advantages such as (1) proximity to the world's largest economy, (2) market-opening policies associated with NAFTA membership, and (3) abundant, low-cost, and high-quality labor. None of these has changed much. Yet, by the 15th anniversary of NAFTA (2009), there is a significant movement for MNEs to curtail operations in Mexico and move to China. Why?

2. From institution- and resource-based views, identify the obstacles confronting MNEs from emerging economies interested in expanding overseas. How can such firms overcome them?

3. ON ETHICS: Entering foreign markets, by definition, means not investing in a firm's home country. What are the ethical dilemmas here? What are your recommendations as (1) MNE executives, (2) labor union leaders of your domestic (home country) labor forces, (3) host country officials, and (4) home country officials?