MG303      Half Unit
International Business Strategy and Emerging Markets

This information is for the 2020/21 session.

Teacher responsible

Prof Saul Estrin NAB 4.32 and Dr Christine Cote NAB 4.05


This course is available on the BSc in Accounting and Finance, BSc in Management, International Exchange (1 Term) and International Exchange (Full Year). This course is available as an outside option to students on other programmes where regulations permit and to General Course students.

This course cannot be taken with MG307.


All students, including BSc Management students, must be in their 3rd year and should have taken Economics A (EC100) or Economics B (EC102), or equivalent.

Course content

This course analyses the emergence of firms which operate on a global scale and their current and likely future interactions with emerging markets. It will combine the development of conceptual frameworks primarily through the lectures with the analysis of key cases in the classes.

Multinational firms have been an increasingly significant aspect of the corporate environment in developed countries since the 1960s, and are responsible for a high proportion of global output, exports and investment, as well as the bulk of foreign direct investment. In the past few decades their activities have been increasingly focused to developing economies, notably those which have liberalised and entered a more rapid growth phase. These economies, emerging markets, include some important world economies including China, India, transition economies such as Russia, and Latin American countries such as Brazil and Argentina. The "new institutional economics" has recently developed as a field to understand the impact of variation in institutions on economies' performance.

This course will focus on how the institutional characteristics of emerging markets affect the choices and behaviour of multinational firms, now and into the future. We commence with the basic framework of analysis of the behaviour of multinational enterprises (MNEs), outlining models of the MNE which draw on transaction cost economics, the eclectic OLI paradigm of Dunning, and more recent concepts such as the resource based view. We will provide an analysis of economic performance and growth in emerging markets building on the new institutional economies and working with a large variety of datasets and sources. The course will then turn to key topics. These will include the interaction between international trade and investment in the internationalisation choices of MNEs; the emergence of global supply chains; the determinants of FDI; the effects of FDI on the host economy; entry mode choices; measures of institutional and cultural distance; and the growing importance of multinationals from emerging markets.

Students will work with case material as well as the required reading, and the group project will comprise a case write up, which will be presented prior to submission in class for comment and discussion.


30 hours of seminars in the LT.

The seminars will be combined seminars and lectures. Students on this course will have a reading week in Week 6, in line with departmental policy.

Formative coursework

Students will undertake a formative essay (1000 words) for which feedback will be provided in preparation for the final summative coursework.

Indicative reading

R. Caves, Multinational Enterprise and Economic Analysis, 2nd Edition, Cambridge University Press 1996; P. Ghemawat, Redefining Global Strategy, Harvard Business School Press, 2007; J. Williamson, "The New Institutional Economies", Journal of Economic Literature, 2000; Estrin et. al., "Entry Mode in Emerging Markets", Strategic Management Journal, 2009; T. Khanna and K Palepu, "The Future of Business Groups in Emerging Markets", Academy of Management Journal 2004.


Coursework (50%) in the ST.
Project (40%) and class participation (10%) in the LT.

LT coursework will be a group project which will consist of a group presentation in the last week of the LT.

Important information in response to COVID-19

Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.

Key facts

Department: Management

Total students 2019/20: 46

Average class size 2019/20: 49

Capped 2019/20: Yes (54)

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Leadership
  • Self-management
  • Team working
  • Problem solving
  • Application of information skills
  • Application of numeracy skills
  • Commercial awareness
  • Specialist skills