MG447E Half Unit
Foreign Direct Investment and Emerging Markets (modular)
This information is for the 2020/21 session.
Prof Saul Estrin
Dr Christine Cote
This course is compulsory on the Executive Global MSc in Management. This course is not available as an outside option.
The information in this course guide pertains to the 2019-2021 cohort.
This course analyses the emergence of firms which operate on a global scale and their current and likely future interactions with emerging markets. 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 concept such as the resource based view. We will then 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 remainder of the course is devoted to specific topics of MNEs in emerging markets. These include the determinants and impact of FDI; entry mode choices; measures of institutional distance; outsourcing; and emerging market multinationals.
Outline of Lectures: Lectures 1 Globalization, trade and GVCs 2: Models and Strategies of the Multi-National Enterprise (MNE) Lecture 3: Growth and Institutions in Emerging Markets Lecture 4: Modes of Entry 5: Global Strategies 6: Global Strategies (2) 7: The Determinants of Foreign Direct Investment (FDI) into Emerging Markets Lecture 8: The Impact of FDI on Emerging Markets Lecture 9: Emerging Market Multinationals Lecture 10: FDI choices and firm strategies- case presentations
Scheduled over three modules, one of which will take place overseas – 10 sessions of up to 3.5 hours.
The course will run between the following dates:
31 August – 05 September 2020
01 – 07 November 2020
04 – 9 January 2021
Students will be expected to produce 1 essay in the MT.
R. Caves, Multinational Enterprise and Economic Analysis, 2nd Edition,
Cambridge University Press 1996;
P. Ghemawat, Redefining Global Strategy, Harvard Business School Press,
J. Williamson, The New Institutional Economies, Journal of Economic
Estrin et. al., Entry Mode in Emerging Markets, Strategic Management
T. Khanna and K Palepu, The Future of Business Groups in Emerging Markets,
Academy of Management Journal 2004.
Take-home assessment (60%) in the LT.
Presentation (30%) in the MT.
Class participation (10%) in the MT and 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.
Total students 2019/20: Unavailable
Average class size 2019/20: Unavailable
Controlled access 2019/20: No
Value: Half Unit
Personal development skills
- Team working
- Problem solving
- Application of information skills
- Application of numeracy skills
- Commercial awareness