1.You first need to select one factor out of culture, language or religion. Critically discuss how
this factor can influence the extent of cross border activities of a country. For example, if
you select culture, you need to critically discuss in what ways a country’s cross border
activities can be influenced by its culture. Then illustrate your arguments in the first part
using a country (or a suitable set of countries) listed in the Depth Index of Globalisation in
Ghemawat and Altman (2013) by demonstrating how the factor that you have selected (i.e.
culture, language or religion) has influenced their globalisation levels.

Globalisation, the process that refers to the growth of integration and inter-dependencies
between national markets and industries on a worldwide scale, represents one of the most
powerful levers available for boosting growth. Extent of globalisation of a country differs
significantly from country to country, some countries, emerging economies in particular,
being far less integrated than that is commonly believed. There can be many factors that
can help or limit the globalisation process of countries. Cross-national diversity, such as
language, culture and religion, can be a main barrier that limit the integration between
countries.
In this essay, you need to select one factor out of culture, language or religion, and then
critically discuss in what ways this factor can influence the cross border activities of a
country. For example, if you select culture, you need to critically discuss in what ways a
country’s cross border activities can be influenced by its culture.
Then you need to Illustrate your arguments in the first part using a country (or set of
countries) listed in the Depth Index of Globalisation in Ghemawat and Altman (2013). For
example, you can select two countries in which one’s globalisation level is positively
affected by its culture (or language or religion) and the other’s globalisation level is
negatively affected by its culture (or language or religion) and then demonstrate how the
globalisation level of the first country is positively affected by its culture and how the
globalisation level of the other country is negatively affected by its culture. This is only an
example, you may select the number of countries as appropriate. You need to select the
countries from the country list in the Depth Index of Globalisation (Figure 6.1 in page 87) so
you can have a good sense of their globalisation levels

2.Critically discuss how foreign divestment can affect the host country and assess whether
foreign divestment is beneficial or harmful to the host country.

Although FDI is expected to bring in an array of benefits to the host country, whether FDI
benefits a host country is a much debated argument because there are positive effects as
well as negative effects of FDI. Effects of FDI can materialise either as direct effects (own
firm effects) or spillover effects (effects on other firms and on the host country environment).
There is a large literature that examine the effects of incoming FDI on the host economy.
Although FDI represent a long term commitment, MNEs frequently divest their subsidiaries
in foreign locations. Foreign Divestment is the counterpart to Foreign Direct Investment
(FDI) where an MNE divest its stake in a foreign subsidiary. Foreign divestment is
considered as one of the most neglected research areas in international business. But this
fact is changing with the growing attention received by foreign divestment activities (see for
example, UNCTAD (2015)). Increasingly many scholars are interested in studying foreign
divestment, however, studies examining the impact of foreign divestment on the divested
firms or host economies are still very limited.
You first need to read the literature on the impact of FDI in order to understand how FDI can
affect the host country. This will enable you to comprehend the positive and negative
effects of FDI. There is a large literature on this topic, therefore, this task is fairly
straightforward. You also need to read the literature on foreign divestment.
After reading the literature on impact of FDI and foreign divestment, you need to critically
discuss whether foreign divestment is beneficial or harmful to the host country. The impact
of foreign divestment on the host country is largely understudied and there is a very limited
literature on this topic. Therefore, only relying on the literature on foreign divestments may
not be sufficient to develop a coherent thesis. Thus, your task involves (1) relating your
discussion to available literature on foreign divestments and (2) extending arguments from
the literature on the impact of FDI to understand the impact of foreign divestments.

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