In­ter­na­tion­al Busi­ness and Eco­nom­ic De­vel­op­ment

Course content

The aim of this course is to provide the student with a comprehensive theoretical, methodological and empirical understanding of the complex interface between the strategies of multinational corporations (MNCs) and host country development strategy, emphasizing MNC strategies in emerging markets and developing countries.

In spite of recent set-backs, one of the most significant economic developments in 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 to la large extent driven by MNCs. A large share of MNC trade and investment activities is 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 have adopted economic development strategies aimed using MNC investment to access technology, capital, organizational and marketing know-how, markets, etc.

The course includes the following main elements:

• Introduction: Trends in MNC activity and foreign direct investment including implications of recent globalization backlash;
• 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;
• Upgrading and spill overs: Development impacts of MNC activity on host countries; Spillover effects and upgrading from collaboration between MNCs and local firms in developing countries; FDI’s role in building and sustaining national competitiveness;
• Investment policy, regulation and standards: Home and host country measures to promote and control activities of MNCs; Global governance and regulation of MNCs.

Dealing with the above issues, the course will present the major theoretical and analytical contributions within International Business 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. The course will furnish students with tools that allow them to conduct and evaluate quantitative analysis of large data sets on FDI and MNCs.