Multinational enterprise and global strategy: Internationalization, global value chains, sovereignty and responsible governance

Multinational enterprise strategy begins where country-level international economics stops: with the firm deciding why, where and how to commit resources across jurisdictions that differ in markets, institutions, currencies, politics, cultures and legitimacy expectations. This chapter integrates the principal theories of internationalization with the practical architecture of foreign market selection, entry mode, foreign direct investment, multinational configuration, global value chains, headquarters-subsidiary relations, alliances, geopolitical risk and strategic renewal. It critically compares Uppsala, internalization, transaction-cost, eclectic/OLI, network, institutional and born-global perspectives, showing that each explains a different part of the internationalization problem. African evidence is analytically central through Shoprite and research on African multinationals, while TSMC provides a global comparative case on geographic diversification, industrial policy and sovereignty. Current evidence on foreign direct investment and value-chain reconfiguration is interpreted cautiously. Christian moral reasoning treats cross-border corporate power as accountable stewardship, requiring truthful dealing, labour dignity, local value creation, anti-corruption, tax responsibility, respect for sovereignty and cultural integrity, and disciplined responsibility for foreseeable consequences.

Keywords: multinational enterprise; internationalization; foreign direct investment; entry modes; global strategy; global value chains; headquarters-subsidiary relations; geopolitical risk; African multinationals; responsible governance