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2012/2013  BA-HA_E137  International Corporations and Global Markets

English Title
International Corporations and Global Markets

Course information
Language English
Exam ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Course period Spring
Changes in course schedule may occur
Tuesday, 11.40 - 14.15, week 5-12.
Monday, 11.40-14.15, week 5,12.
Time Table Please see course schedule at e-Campus
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Nicolai Pogrebnyakov - Department of International Economics and Management
Administration: Birgit Dahlgren - bgd.int@cbs.dk
Main Category of the Course
  • Globalization, International Business, markets and studies
  • Management
  • Corporate and Business Strategy
Last updated on 01-11-2012
Examination
48 hour individual take-home case analysis.
48 hour individual take-home case analysis:
Type of test Home Assignment
Marking scale 7-step scale
Second examiner No second examiner
Exam period Spring Term
Aids Open Book, Written Aid is permitted
Duration 48 Hours
Examination
The exam will be an individual 48-hour take-home analysis of questions on topics from the course content. The questions will be provided by the teacher. The student must write max. 7 pages (1 page is counted as 2,275 characters including spaces).

The make-up/re-exam will be held in the same way and with the same conditions as the ordinary exam.
Course content

The course examines two levels of international business activities: the firm and the nation. The level of the firm considers the theories and practice of international activities of firms. The level of the nation examines why firms choose to do business in particular countries and how international corporations and individual nations impact each other.

The following topics are covered:

· Theoretical frameworks of international business activities of firms (Vernon’s product life cycle, Hymer’s approach, the internalization approach, internationalization process model, transaction cost economics).

· The growing presence of multinationals from emerging economies in the international business community.

· Specifics of international business activities of service firms and patterns of their internationalization.

· Competitive advantages of nations and the ability of nations to attract international corporations.

· The influence of national and supranational institutions on international business activities.

· Mutual impacts of international firms and national economies on each other.
Teaching methods
Lectures and case study discussions. Active class participation is expected.
Expected literature

Part I. The firm: theory and practice of international activities of corporations


Week 1. Course intro. FDI in the world economy and recent trends. History and overview of international corporations.

Readings
World Investment Report 2011 by UNCTAD.
http://www.unctad.org/en/docs/wir2011_en.pdf
 

Week 2. Internationalization theories A: Vernon.

Readings
Dunning, J. (1998). “Location and the Multinational Enterprise: A Neglected Factor?” Journal of International Business Studies, 29(1), 45—66.
 

Week 3. Internationalization theories B: Hymer. Internalization. Geography and oligopolistic reaction

Case
Ribe Maskinfabrik A/S — Developing New Business Areas
  
Readings
Prahalad, C. K. and Hamel, G. (1990). “The Core Competence of the Corporation.” Harvard Business Review, May/June, 79—91.

Week 4. Incentives theory and the firm

Readings

Eisenhardt, M, K. (1989). “Agency theory: An assessment and review.” Academy of Management Review, 14(1), 57—74.
Narayanan, V. G. and Raman, A. (2004). “Aligning incentives in supply chains.” Harvard Business Review, November, 94—102.
 

Week 5. Transaction cost theory. Core competencies.

Case
ECCO A/S - Global Value Chain Management (Ivey case 908M14)


Readings
Malone, T. W., Yates, J., and Benjamin, R. I. (1987). “Electronic markets and electronic hierarchies.” Communications of the ACM, 30(6), 484—497.
Quinn, J. B. and Hilmer, F. G. (1994). “Strategic Sourcing.” Sloan Management Review, 35(4), 43—55.
Gomes-Casseres, B. (2009). “Outsourcing: where will you draw the line?” http://blogs.hbr.org/cs/2009/08/outsourcing_where_will_you_dra.html



Part II. The Nation: Why and How Corporations Choose to do Business in Particular Countries
 

Week 6. The impact of FDI and multinationals on local economies

Readings
OECD (2006). “Outward Direct Investment: What Benefits to the Home Countries?” In International Investment Perspectives, chapter 4, 97—120.

 

Week 7. The role of policies and institutions in FDI

Readings
Busenitz, L. W., Gómez, C. and Spencer, J. W. (2000). “Country institutional profiles: unlocking entrepreneurial phenomena.” Academy of Management Journal, 43(5), 994—1003.
 

Week 8. Roles of subsidiaries. The role of technology in the multinational corporation, issues of organization and management.

Case
Globalization of Wyeth

Readings
Bartlett, C. A. and Ghoshal, S. (1986). “Tap your subsidiaries for global reach.” Harvard Business Review, November/December, 87—94.

Pearce, R. (1999). “The evolution of technology in multinational enterprises: The role of creative subsidiaries.” International Business Review, 8, 125—148.
 

Week 9. The process of internationalization and production strategies for multinationals. Dunning’s eclectic framework and investment development path.

Case
IPC Corporation, Singapore (Ivey case 996G05)

Readings
Dunning, J. H. (2000). “The eclectic paradigm as an envelope for economic and business theories of MNE activity.” International Business Review, 9, 163—190.

Johanson, J. and Vahlne, J.-E. (1977). “The Internationalization Process of the Firm-A Model of Knowledge Development and Increasing Foreign Market Commitments.” Journal of International Business Studies, 8(1), 23—32.

Week 10. MNCs from emerging economies. Course wrap-up.


Readings
Kumar, N. (2007). “Emerging TNCs: trends, patterns and determinants of outward FDI by Indian enterprises.” Transnational Corporations, 16(1), 1—26.
Gammeltoft, P. (2010). “Emerging multinationals, emerging theory: macro- and micro-level perspectives.” Journal of International Management, 16, 95—101.
The Economist (2011). “Nipping at their heels.” http://www.economist.com/node/17957117
Last updated on 01-11-2012