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2013/2014  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, Third Quarter
Changes in course schedule may occur
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 (INT)
Administration: Birgit Dahlgren - bgd.int@cbs.dk
Main academic disciplines
  • Globalization, International Business, markets and studies
  • Management
  • Corporate and Business Strategy
Last updated on 15-02-2013
Learning objectives
To be awarded the highest grade (12), the student, with no or just a few insignificant shortcomings, must fulfill the following learning objectives:
  • Evaluate and identify strengths and weaknesses of major theories and frameworks that explain the behavior of multinational corporations (MNCs)
  • Identify current topics in the understanding of the modern MNCs.
  • Define the required theoretical background that will support the analysis of the contemporary MNC and review critically the existing literature.
  • Develop hypotheses or research questions that will address future developments in the study of the MNC.
  • Explain the strategic evolution of MNCs.
Examination
48 hour individual home assignment:
Examination form Home assignment - written product
Individual or group exam Individual
The exam will be an analysis of questions on topics from the course content. The questions will be provided by the teacher.
Size of written product Max. 5 pages
Assignment type Written assignment
Duration 48 hours to prepare
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Spring Term
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content and structure

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 15-02-2013