This essay is an individual assignment. The format for this essay should include a title page and a
references list. A table of contents is not necessary.
The essay should draw on the neo-institutional theory (NIE) that we have covered in the unit.
For this essay, you need to discuss and explain the institutional environment and its impact on firms.
Please see below the structure and what you have to address in each section
• Introduction
● Introduce your topic, your sections and your conclusion here.
• A critical explanation of a formal and informal institutional environment based on the theory
that was covered in the reading, lectures and tutorials.
• An explanation of how and why the institutional environment can affect the following:
● foreign firms’ investment decisions and performance
● the transaction costs that a firm will face in a foreign country
● the attractiveness of a country.
● You can also consider and discuss the impact of specific elements of institutions on
● firms
• Up to two cases to illustrate your points. Choose either a country or a firm for each
case. For each case:
● If you choose a country for your case: you can discuss how the institutional
● environment of a specific country affects the flows of investments
● If you choose a firm: you can discuss how and why the institutional environment
● affects a specific firm (its investment decisions and/ or operations in a country).
• Conclusion
● This draws your argument together to restate your point coherently and succinctly.
Readings:
Euromonitor Passport
• World Trade Organisation (WTO)
• International Monetary Fund (IMF)
• World Bank (especially the Doing Business index)
• United Nations Conference on Trade and Development (UNCTAD)
• Organisation for Economic Cooperation and Development (OECD)
• Financial Times
• Journal of International Business Studies
• Journal of World Business
• International Business Review
• Academy of Management Journal
• Strategic Management Journal
• International Journal of Management Reviews
• Harvard Business Review
• MIT Sloan Management Review
