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MNB3701 ASSIGNMENT 2 REPORT 1 2024 (JAC MOTORS)
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MNB3701 ASSIGNMENT 2 REPORT 1 2024 (JAC MOTORS)
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MNB3701 REPORT 1 2024 passmatetutorials@gmail.comDISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A
POSSIBLE SOLUTION TO THE TASK CONSISTENT WITH THEORY OF
INTERNATIONAL BUSINESS. THIS REPORT IS INTENDED TO ASSIST
STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT, AND IN NO CASE
THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE THIS WILL
BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
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EXISTING THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE
AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE
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Table of Contents
Executive summary .................................................................................................... 3
Literature search ........................................................................................................ 3
Background ................................................................................................................ 5
Joint Ventures and Exportation as internationalisation strategy by JAC ................. 5
Institutional based view .............................................................................................. 6
Formal institutions ...................................................................................................... 6
Economic system .................................................................................................... 7
Exchange rate regime .......................................................................................... 8
Interest rates ........................................................................................................ 8
Political ideology ..................................................................................................... 9
Corruption ............................................................................................................ 9
Implications to management ................................................................................. 10
Informal institutions .................................................................................................. 11
Culture .................................................................................................................. 11
Ethics .................................................................................................................... 12
Relativism in ethical standards .......................................................................... 12
Implications to management ................................................................................. 13
Conclusion ............................................................................................................... 13
References ............................................................................................................... 15
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Executive summary
The primary objective of this report is to investigate the effects, both formal and
informal institutions, on the performance (success or failure) of MNEs. The institutions-
based view is an important framework that has been adopted by the report in order to
understand the success or failure of JAC Motors, a Chinese business operating in
Zimbabwe. This is because the report seeks to understand the success or failure of
JAC Motors. To put it another way, the report selected a business from one of the
BRICS nations that has operations on the African continent. The way in which
multinational corporations (MNEs) conduct their business is governed by formal
institutions that are commonly referred to as the rules of the game. These include
political ideologies and economic philosophies that Zimbabwe is following in its current
state of existence. According to this report, favourable contributions from both politics
and the economic system have been made to the success of JAC Motors. Additionally,
informal institutions such as culture and ethics had an effect on JAC Motors due to the
fact that they are distinct from those of the company's native country. JAC Motors
established a corporate culture that is inclusive to all of its stakeholders, as well as
ethical relativism, which helped to reduce outsidership liability within the organization,
as part of its effort to better align itself. This made a significant contribution to its overall
achievement.
Literature search
Literature drawn from a variety of sources is used to support and clarify the findings of
reports (Lefebvre, Glanville, & Briscoe, 2019). In this report, secondary sources were
utilised in such a way that allowed the report to comprehend how institutions contribute
to the success or failure of an organisation. This was accomplished by using
secondary sources. The majority of the report's sources were publications like journals
and articles, as well as textbooks. The emphasis of the study was on the years 2000-
2022. Some of the materials that were looked into for the sack of theories, such as the
history and background of JAC motors, date back to the 1980s. In addition, report
evaluated all 30 abstracts and discovered that only 16 of them were helpful in putting
together this report. In order to gain access to the published works available on the
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