Landscape and

Challenges 12
Dr. Gilbert K. Adarkwah, PhD., LLM., MSc., MA., BA
Session # Name
8 Foreign Direct Investments and
Multinational Corporations
Reading week
9 Competition in a Globalized Word and
Global Technological Innovation
10/11 Political Frictions: Corruption, War, and
Terrorism
Emerging Markets: Base of the Pyramid,
Institutional Voids, and Market-based
Solutions to Poverty Alleviation
12 Grand Challenges: Solving the World's
Problems (and Adapting to the Response)
13 Research Project
Student activities
Work progress for the first team blog entry. +
Presentation
Publication of first entry
Presentation of the narration in general and
co-creation work
Work progress for the second team blog
entry + presentation
Work progress for the second team blog
entry + presentation
finalize blog entry
Publish second blog entry
Session 12: Grand
Challenges
References

• Climate change mitigation and

internationalization: The competitiveness
of multinational corporations S
Chakrabarty, L Wang - Thunderbird
International Business Review 2013
[Click here]

• Buckley, P.J., Doh, J.P. & Benischke, M.H.

Towards a renaissance in international
business research? Big questions, grand
challenges, and the future of IB
scholarship, Journal International
Business Stud (2017) [Click here]
Agenda

1 Some data...
2 Context
3 Solutions?
4
New challenges?

5 Conclusion
 Some questions
1.What are the world problems?

2.How are they different from the XXth century?

3.Can multinational corporations play a role in

solving these issues?
• Adding a new layer to The Heckscher-Ohlin (H-O)
theorem : the cost of the environment
The Heckscher-Ohlin (H-O) theorem

Stockholm School
of Economics

Eli Filip Heckscher Bertil Gotthard Ohlin

(1879 – 1952) (1899 – 1979)
The Heckscher-Ohlin (H-O) theorem

• A country will export the good that requires relatively more

intensive use of the relatively abundant production factor and
will import the good that requires relatively more intensive use
of the relatively scarce production factor.

• A country that is capital abundant will export the capital-

intensive good. Likewise, a country that is labor abundant will
export the labor-intensive good.
•Current climate change is real and largely caused by humans.

•97% of climate scientists believe climate change is real and is largely caused by
humans.

•56% of Americans do not know or believe that climate change is real and is largely
caused by humans.

•About 30% of Canadians attribute climate change to natural causes and feel that
any debate on this issue is useless because nothing can stop these changes
1. Some data...
•https://climate.nasa.gov/interactives/climate-time-machine
2. Context
https://climatetrace.org/
Is global warming happening and is it
mostly human-caused?
 Debate:
Great Thunb
erg
&
Marcel Boye
r
3. Solutions?
Scientific Consensus vs.
« public wisdom »

• The Intergovernmental Panel on Climate Change:

• Established in 1988

• Nobel Peace Prize Winner (2007)

• Concluded in its first report (1990) that CO2 emissions

resulting from human activities are responsible for
over half of the enhanced greenhouse effect (a view
that was swiftly accepted as fact by Shell and BP)
 Global problems as a result of
institutional voids

•Require a variety of approaches by different

types of actors including:

•Non-governmental organizations (NGOs)

•Interest groups and/or coalitions

•Multinational enterprises (MNEs)

•These actors also formulate market and

nonmarket strategies to get around, or
substitute for, institutional voids (Cantwell et al., 2010;
Child et al., 2012; Mair et al., 2012; Teegen et al., 2004; Meyer &
Nguyen, 2005)
 Multinational
enterprises
• Danone and its new mission
• Even in a country that is known for its
top social programs, board of directors
may still be more influenced by the
bottom line.
https://www.forbes.com/profile/yvon-chouinard/?
sh=16a23f794fb5
Bloomberg Carbon Clock: Measuring Carbon Dioxide that
Causes Global Warming
Pollution and
trade
 •Even if they can help raise awareness about
NGOs issues, they are not in a position of power:
they need firms’ decision-makers to act for
sustainable changes.
Where did the
money go?
Multilateralism

•Multilateralism versus bilateralism

•The game of trust: https://ncase.me/trust/

Lets play the game

4. New
Challenges?
http://
www.globalcarbonatlas.org/
en/CO2-emissions
 Air Pollution in World: Real-time Air Quality Index Visual Map (aqicn.org)

•http://aqicn.org/map/world/
Conclusion
Summary

• A number of issues in the global landscape

escape the authority of the state, the market,
or international institutions

• NGOs can play a role in filling these voids,

either through advocacy and pressures on
MNEs and institutions, or through operations
on the field

• Despite their influence, NGOs are not in a

position of power when it comes to addressing
global issues

• There is a need for Inclusive Innovation

• Today's global architecture

• As for multinationals, they will continue to exist with value

chains that will need to further integrate risk management.

• For governments, economic and industrial policies will need to

give even greater consideration to international risk
management.

• As far as international institutions are concerned, their

coordinating role will have to be strengthened to deal with global
crises (e.g. societal, political and environmental).

• In short, international risk management is a necessity in this

context of growing complexity. And withdrawal does not
diminish this complexity..

Global architecture
• The good news in the face of these risks, which are sometimes
new and often growing, is that humanity today is the most
technologically advanced.

• We have access to algorithmic analysis tools thanks to artificial

intelligence techniques and mass data like never before.

• The international risk manager or analyst has access to this

toolbox: data science for international business.

• In addition to other methodologies, with this toolkit, the analyst can

look for weak signals anywhere on the planet and work on better
risk analysis models and solutions.

• Understanding international business dynamics is therefore more

necessary than ever.

Technology
at the
most • The core: incentives

granular
level:
•https://www.globalshapers.org/
 your own carbon footprint:
Ducky - Actions you can be proud of!
More people create
sand castles than
those that destroy
them
Be one of them
Thank you for a
great semester!
Midterm Exam (25 %)
• A midterm exam will take place during class time after the first six sessions.

• The content of this mid-term quiz will deal with the material that are covered from Session 1 to Session 6.

• The midterm will have short essay.

• Be as fact-driven as possible -data and references will matter in your evaluation.

• Demonstration of autonomy

• Formulation of the problem

• Review of the literature allowing to identify and solve the studied problem

• Choice of methods for the resolution of the problem

• Application of methods

• Analysis of results and conclusion

• Quality of communication in writing a report

Final Exam (30%)
• The final exam will be essay questions. It will be open book: Journal articles (i.e. weekly
summary articles), student presentations, class notes, class slides, and summaries.

• You can use all the material available to you except using Google Search or chatGTP.

• Evaluation criteria is the same as the midterm!

 "Medium" project (in teams) (30 %)

1. Quality of data
2. Analysis
3. Reporting
4. Peer evaluation. No free-riding!

samedi 17 juin 202 61

 "Medium" project (in teams) (30 %)

1. Quality of data
2. Analysis
3. Reporting
4. Peer evaluation. No free-riding!

samedi 17 juin 202 64

Beware of plagiarism