Econ 4311 examines the strategic decisions and operations of multinational enterprises (MNEs) in a fast-changing global environment. We examine theories of trade, foreign direct investment (FDI) and firm strategy and their implications for the growth of multinational firms. While our focus is on how multinational firms make strategic decisions from a microeconomic perspective, we also explore some key elements of the macroeconomic environment that impact the multinational firms’ strategic decisions and growth. In addition to using economics concepts and models to analyze the strategies and behaviors of MNEs, we will also incorporate a transdisciplinary perspective into many of the issues we discuss in this course. Students in the class are typically from many disciplinary backgrounds, and I encourage you to share your varied perspectives on how to approach the problems we discuss.
At the end of this class, you are expected to understand:
- The dynamics of global markets and foreign direct investment.
- The role of comparative advantage in MNE strategy and operations.
- Theories of trade, FDI, and firm strategy, and their application to MNEs’ strategic decision-making.
- FDI and corporate social responsibility to promote sustainable FDI and entrepreneurship.
- MNE strategic behavior and competition in global markets.
- The interactions between the historical, economic, social, political, geographic and regulatory environments and multinationals’ strategic decisions.
- How exchange rates and international tax laws (transfer pricing) impact MNE decisions.
Elements of Multinational Strategy, by Keith Head (KH), Springer is the required book that serves as a basic introduction for the class. I will provide additional readings, cases and lecture notes as supplementary material.
The course grade will be based on 2 exams, 4 homework assignments (I will specify whether each homework is to be done individually or with your group), in-class assignments, and a group project. The total points for the class are 100. The in-class exams are 30 points each, for a total of 60 points. The 4 individual homework assignments are worth 5 points each for a total of 20 points. The in-class assignments are worth 5 points and the group project is 15 points.
Grades will be assigned as follows:
90% of the total points and above A
80% to less than 90% of the total points B
70% to less than 80% of the total points C
60% - to less than 70% of the total points D
Less than 60% of the total points F
You are expected to attend class regularly and in a timely manner.
Students are expected to maintain the highest standards of academic integrity. All work submitted must be original and properly cited. Plagiarism, cheating, or any form of academic dishonesty will result in immediate consequences as outlined in the university's academic integrity policy.
This is a Core IMPACTS course that is part of the Social Sciences area. Core IMPACTS refers to the core curriculum, which provides students with essential knowledge in foundational academic areas. This course will help master course content, and support students’ broad academic and career goals. It will help students understand human experiences and connections from a global perspective, and how historical, economic, regulatory, political, social and geographic relationships and MNEs’ strategic decisions influence each other. This course should help students develop competencies such as intercultural awareness, understanding multiple perspectives and viewpoints and persuasion that are valuable for careers in the global marketplace.