• describe and critically discuss theories and approaches that address the complex interface between MNC business strategy and host country development strategy, with a particular eye to MNC investment in emerging markets and developing countries
• relate these theories and approached to each other and identify similarities and differences
• identify and explain specific patterns of MNC investment and sourcing strategies in non-OECD countries against the backcloth of empirical examples and cases
• analyze development impacts of FDI, including the spill over effects of linkages between MNCs and local firms in developing countries
• discuss and evaluate FDI’s role in economic development strategies in developing countries
• discuss and evaluate the role of regulative initiatives, such as global, regional and host country measures to promote investment by MNC, as well as the role assigned to MNCs in industrial development strategies.

The aim of this course is to provide the student with a comprehensive theoretical and empirical understanding of the complex interface between the strategies of multinational corporations (MNCs) and host country development strategy, emphasizing MNC investments in emerging markets and developing countries. One of the most significant economic developments of recent decades is the economic globalization process as reflected in the rapid growth in international trade and the surge in foreign direct investment (FDI). This process is driven by MNCs. A growing share of MNC trade and investment activities are conducted with non-OECD countries, that is with emerging markets and developing countries. Evidently, MNCs are seeking to exploit the vast but also precarious market and resource potentials of these countries. Simultaneously, emerging markets and developing countries are increasingly embarking on economic development strategies aimed at attracting MNC investment as a means to access technology, capital, organizational and marketing know-how, etc.

The course includes the following main elements:

• Introduction: Mapping trends in foreign direct investment and MNC activity; the financial crises and FDI.
• Investment strategies: Investment motives and sourcing strategies of MNCs in emerging markets and developing countries;
• Dragon multinationals: The growing importance of MNCs coming from emerging markets in Asia (e.g. India and China);
• Global value chains: Global value chain configuration and developing countries; Equity based offshoring versus outsourcing offshoring;
• Effects and spill overs: Development impacts of FDI; Spill over effects and linkages between MNCs and local firms in developing countries; FDI’s role in building and sustaining national competitiveness.
• Investment policy, regulation and strategy: Home and host country measures to promote investments by MNCs; the role assigned to MNCs in industrial development strategies; Global governance and regulation of MNCs.

Dealing with the above issues, the course will present the major theoretical and analytical contributions to the study of the interface between MNC strategies and host country development. Empirically, the course will draw mainly on examples and cases of Danish and OECD based MNCs’ investments in developing countries and emerging markets.

Please note that the texts listed under “Required Literature” are those that you will be held accountable for at the exam. A compendium with most of the “Required Literature” texts can be bought from Samfundslitteratur. The only exception is Hansen, M.W., T. Pedersen and B. Petersen, Danish Investment in Developing Countries-A Global Value Chain Perspective, CPH: CBS Press, 2006 which can be acquired also from Samfundslitteratur.

In addition to the required literature, we have listed ‘Recommended additional literature’ for each lecture. These texts provide good overviews and elaborations on the themes of each lecture, however you will not be held accountable for them at the exam. The general Recommended Additional Literature for the entire theme of the course can be found in:

• Dunning, John, and Sarianna Lundan (2008), Multinational Enterprises and the Global Economy, Edward Elgar, Cheltenham, UK.
• Dicken, P., Global Shift: Transforming the World Economy, London: Sage 2004.
• Rugman, A.M. (ed., 2008), The Oxford Handbook of International Business, New York: Oxford University Press.
• Journal of International Business Studies
• Journal of Transnational Corporations
• UNCTAD, World Investment Report (1992-2010)