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2010/2011  BA-HA_E137  International Corporations and Global Markets

English Title
International Corporations and Global Markets

Course Information

Language English
Point 7,5 ECTS (225 SAT)
Type Elective
Level Bachelor
Duration One Semester
Course Period Spring
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
Secretary Marianne Lindvig Christensen - mc.int@cbs.dk
Main Category of the Course
  • Corporate and Business Strategy
  • Globalization, International Business, markets and studies
  • Management

Taught under Open University-Taught under open university.
Last updated on 29 maj 2012
48 hour individual take-home case analysis.
Exam Period May/June

The exam will be an individual 48-hour take-home case analysis. The problem (a case) will be provided by the teacher. The student must write max. 7 pages.
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.

Week 1. Introduction: history and overview of international corporations

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

Week 2. Internationalization theories A: Vernon, Hymer, internalization


Ietto-Gillies, G. (2002). “Hymer, the nation-state and the determinants of multinational corporations’ activities.” Contributions to Political Economy, 21(1), 43—54.

Sat, N. A. (2009). “Revisiting transnational corporations’ literature: the implicit emphasis on spatial reflections.” GU Journal of Science, 22(1), 41—50.

Week 3. Internationalization theories B: internationalization process model, born-globals


Chetty, S. and Campbell-Hunt, C. (2004). “A strategic approach to internationalization: a traditional versus a born-global approach.” Journal of International Marketing, 12(1), 57—87.

Ghemawat, P. (2001). “Distance still matters: the hard reality of global expansion.” Harvard Business Review, September, 137—147.

Week 4. Explaining outsourcing and offshoring: resource-based view, transaction cost economics


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


Gomes-Casseres, B. (2009). “Outsourcing: where will you draw the line?” http://blogs.hbr.org/cs/2009/08/outsourcing_where_will_you_dra.html

Narayanan, V. G. and Raman, A. (2004). “Aligning incentives in supply chains.” Harvard Business Review, November, 94—102.

Week 5. Multinationals from emerging economies


BCG Report (2006). The New Global Challengers: How 100 Top Companies from Rapidly Developing Economies are Changing the World. http://iis-db.stanford.edu/evnts/4326/New_Global_Challengers_May06.pdf

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

Week 6. National competitive advantage


Competitive Advantage of China (Stanford case IB57)


Porter, M. E. (1990). “The Need for a New Paradigm.” In The Competitive Advantage of Nations, New York: Free Press.

Week 7. Policies and institutions


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. Multinationals and national economies: mutual impacts


McKinsey (2003). Multinational Company Investment: Impact on Developing Economies, 1—23.