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2010/2011  KAN-OE24  The Global Firm

English Title
The Global Firm

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Mandatory
Level Full Degree Master
Duration One Semester
Course Period Spring
Time Table Please see course schedule at e-Campus
Max. participants 25
Study Board
Study Board for MSc in Advanced Economics and Finance
Course Coordinator
  • Paul Duo Deng - Department of Economics
Main Category of the Course
  • Economics, macro economics and managerial economics
Last updated on 29 maj 2012
Learning Objectives
Students are required to:
  • • Analyse the opportunities that a firm faces with respect to location. This includes consideration of whether to export or to become a multinational. This decision in turn, includes evaluation of differences in production costs, taxes, tariffs and growth opportunities.
  • • Analyse the policy choices faced by governments in the presence of internationally mobile firms
  • • Apply the taught theoretical models of international economic aspects to real world situations.
  • • Explain empirical findings on firms’ internationalisation behaviour and
  • • Develop new hypotheses on unexplained trends.
The Global Firm
Marking Scale 7-step scale
Censorship No censorship
Exam Period May/June
The exam consists of two parts: a term paper and a 4 hours written exam, closed book.
In the final grade, the weight of the term paper is 40% and the weight of the written exam is 60%. The weighted average is rounded to the closest grade on the Danish scale in order to obtain the grade for the course. If the student passes the course as a whole, he/she cannot re-take parts of the exam (e.g. if the student passes the course as a whole, the student cannot re-take a term or final exam even though he/she fails this constituent part).

Prerequisites for Attending the Exam
Course Content

Why do some firms become global while others just stay domestic? Why do some choose to outsource production to other firms while others produce everything inside the firm? Are exporting firms more productive firms or are they just firms with a good product? How does the presence of multinational firms shapegovernment policies?These are some of the questions that will be answered in “The Global Firm” course. The course partly builds on recent developments in international trade theory that put emphasis on firm behaviour and characteristics rather than country characteristics (the standard international economics approach) and partly draws on contributions in international taxation. Using modern theories of firm heterogeneity and incomplete contracting, the course will bring together views on firms’ internationalisation behaviour.

Teaching Methods
The format of the course is based on the following elements:
• Lectures
• Discussions in class
• Term paper