The case analysis:Bata Shoe

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Section 1: Introduction Multinational enterprises (MNEs) like Bata must operate in countries with different political and legal conditions, so the political impact on the foreign investments is very important. This paper explains this issue based on the Bata case in three parts. The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the second part, the advantages and disadvantages, which MNEs bring to their company and the host-country when doing foreign direct investment, are analyzed relating to the Bata case. And the last part gives a detailed analysis of the complex political impact on international business with reference to the political…show more content…
But after that special period, Bata successfully proved to the Communists that they could rebuild organizations in the economic restructuring of countries that used to be behind the Iron Curtain [4]. Take the investment in Czech republic for example, during the Second World War, Bata had to leave the former Czechoslovakia where its operations started because the political situation had worsened. After many years communists took power in Czechoslovakia and confiscated Bata. However, following the "velvet divorce" of the former Czechoslovakia, the Czech Republic rushed into a market economy with entrepreneurs being agents of social change [5]. After negotiating with the government over conditions surrounding the organization's investment in Czech Republic, Bata successfully got the ownership of the company in Czech Republic again and operated profitably. Opposite to its reinvestment in Czech Republic mentioned above, Bata faced considerably more government intervention in Slovakia. There is likely to be more political instability in Slovakia and Slovakia does not have a very positive attitude toward foreign investment (despite Bata's roots in the region). Bata's battle for restitution in Slovakia courts may be a long and expensive process [6]. 2.3 Critical foreign investments However, apart from its successful foreign investments in some countries, Bata should be also censured for critical operations under the

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