This course provides an overview of the development and contemporary fluctuations of the key players on the international economic stage: multinational enterprises (MNEs). Attention is placed on the development of MNEs and foreign direct investment (FDI), as well as on the underlying reasons for foreign investment and MNE activity. Besides discussing the determinants of internationalisation the course will also examine its effects on host countries. Different types of internationalisation strategies are compared and examined. The course includes consideration of the political economy context within which MNEs operate as well as their own strategic decision-making.
On completion of this module, students will be able to:
1. Comprehend the key features of the international business environment and the scale, scope and nature of international business activity;
2. Understand the motivations for firms to internationalize and the main characteristics of the different foreign market entry strategies;
3. Critically evaluate the organisation and structure of MNEs and the ways of building up firm competitiveness in the global market;
4. Recognise the impact of the host country market and its culture on MNE activities and to better understand the significance of this activity for host nations.
5. Understand the risks of internationalisation and the strategies to manage risk
6. Demonstrate presentation and team working skills
Reading list materials
Recommended textbook (there are copies in the library)
• Hill, Charles W.L. (2012). International Business: Competing in the Global Marketplace, McGraw-Hill, 9th Edition.
• Dunning, John H. &Lundan, Sarianna M. (2008). Multinational Enterprises and the Global Economy. Edward Elgar, 2nd edition.
• Ciravegna, Luciano; Fitzgerald, Robert, &Kundu, Sumit, K. (2013). Operating in Emerging Markets. A Guide to Management and Strategy in the New International Economy. FT Press, Pearson.
• Khanna, Taran&Palepu, Krishna G. (2010). Winning in Emerging Markets: A Roadmap for Strategy and Execution. Harvard Business Press.
• Ramamurti, Ravi&JitendraV. Singh (2013) (eds.) Emerging Multinationals in Emerging Markets. Cambridge University Press.
The individual report will be on the internationalization of a multinational enterprise of your choice from an emerging economy.If this EMNE is operating in more than one industry (i.e., is a diversified conglomerate), select also a business division of the EMNE.The deadline for the submission of the report is 27 April 2015, 12am. Please submit you report via Moodle.
The word limit for the report is 2,500(excluding appendixes; 10% tolerance level).Justify all arguments put forward in your report. A wide variety of sources should be used, including annual reports, journal and newspaper articles, corporate reports, industry reports, data bases, company websites, etc. In your report you should cover the following points:
• Outline the internationalization path of the selected EMNE (e.g., sequence of entered markets, entry modes).
• Apply one or more internationalisation theories (e.g., the OLI framework, Uppsala model, or springboard perspective) in order to explain the internationalisation of the EMNE and critically evaluate the applied internationalisation theory or theories (you are NOT expected to apply ALL internationalisation theories).
• Evaluate the internationalisation of the selected company and summarize the key points of your analysis.
• Suggestions for the future: Based on your analysis, give recommendations for the future.