Syllabus: International Baccalaureate - Individuals and Societies - Business management (Higher Level)
Module: Unit 1: Introduction to Business Management
Lesson: 1.6 Multinational Companies (MNCs)
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Introduction
This lesson aligns with IB Business Management HL – Unit 1.6: Multinational Companies (MNCs), part of the Individuals and Societies strand. It offers a rich context for exploring the operations, advantages, challenges, and ethical considerations of businesses operating across borders.
For educators, this topic is not only essential for understanding global business structures but is also a powerful opportunity to embed commercial awareness, workplace readiness, and career-linked thinking—critical priorities under Gatsby Benchmarks 4, 5, and 6.
Key Concepts
According to the IB syllabus, learners should understand:
Definition and Characteristics of MNCs: Businesses with operations in more than one country, often with a global presence and integrated strategy.
Reasons for the Growth of MNCs: Market expansion, economies of scale, access to talent, and strategic asset-seeking.
Impacts on Host Countries:
Positive: Employment, technology transfer, increased investment.
Negative: Exploitation, cultural erosion, tax avoidance, environmental concerns.
Ethical and Sustainability Considerations: Global supply chains, fair trade, CSR obligations, and environmental stewardship.
Stakeholder Conflicts and Tensions: Between host governments, employees, shareholders, and pressure groups.
These areas underpin critical debates around globalisation, ethical business practices, and corporate influence—making them ideal for linking classroom theory to real-world contexts.
Real-World Relevance
Multinational companies shape the modern economy. Real-time examples can bring this topic to life:
Apple Inc.: Its use of global supply chains in China and Vietnam highlights outsourcing benefits and ethical dilemmas around labour standards.
Unilever: Demonstrates CSR in emerging markets, combining profitability with sustainability, particularly in water conservation and plastic reduction campaigns.
Nestlé in Africa: Raises questions on ethical sourcing and local development versus profit motives.
Tesla: A case study in entering international markets (e.g. Gigafactory in Berlin) to reduce logistical costs and benefit from regional incentives.
Case discussions on these firms allow students to interrogate theory through the lens of current affairs and business strategy.
How It’s Assessed
In IB Business Management HL, assessment formats for this topic may include:
Paper 1 (Compulsory Case Study): May include a fictional MNC, with structured and extended response questions.
Paper 2 (Data Response & Essay):
Section C essay questions often ask students to critically evaluate ethical or strategic dilemmas facing MNCs.
Command words: Evaluate, Examine, Discuss, Justify—students should practise higher-order thinking responses.
Internal Assessment: Students may select real MNCs as the subject of their research projects, often focusing on market expansion strategies or stakeholder impacts.
Mark schemes reward not only knowledge but also analysis, application and critical evaluation—making teaching strategies that develop these skills especially valuable.
Enterprise Skills Integration
This unit naturally links to the Enterprise Skills thematic framework, particularly:
Commercial Awareness: Understanding how firms adapt strategies across markets and manage cost vs. ethical trade-offs.
Decision-Making & Problem-Solving: Students weigh complex scenarios—e.g. whether to outsource, how to manage stakeholder conflict, or how to respond to local protests.
Workplace Readiness: Students reflect on how decisions made by global firms affect careers, economies and communities—key to preparing for a globalised world.
Enterprise Skills simulations or Skills Hub tools such as the Global Market Entry Tool and Stakeholder Mapping Scenarios enable active learning around MNC decisions.
Careers Links
Unit 1.6 presents a strong platform for careers-focused learning, directly supporting Gatsby Benchmarks 4, 5 and 6:
Benchmark 4: Curriculum learning links to roles in international marketing, supply chain management, international law, CSR, and trade compliance.
Benchmark 5: Use employer case studies (e.g. guest videos or news reports from companies like Unilever or Nike) to deepen student understanding.
Benchmark 6: Skills Hub Futures’ virtual workplace scenarios offer simulated experience of MNC roles such as global analyst or sustainability officer.
Invite employer engagement via guest talks or sector-specific Q&As to extend these insights.
Teaching Notes
Tips for Delivery:
Start with a question: “Why do companies become multinational?” and map student responses to strategic business motives.
Use maps and timelines to trace MNC growth into emerging markets—helps visual learners.
Apply stakeholder role-play debates to explore conflicting priorities (e.g. profit vs. people).
Common Pitfalls:
Students often conflate globalisation with MNCs—clarify that MNCs are one result of globalisation, not the cause.
Some students treat ethical considerations superficially. Push for depth—What is the business risking by ignoring ethics?
Extension Activities:
Ask students to track an MNC’s operations across 3 countries and evaluate the differing stakeholder impacts.
Use real news stories for critical review tasks (e.g. Apple’s labour standards, Amazon’s tax practices).
Integrate tools from Skills Hub Business for applied commercial thinking with zero prep time.
