Multinationals and Internationalisation

Code:

2EGI01

Acronym:

MI

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2024/2025 - 1S

Active?	Yes
Responsible unit:	Agrupamento Científico de Economia
Course/CS Responsible:	Master in International Economics and Management

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MEGI	43	Bologna Syllabus since 2012	1	-	7,5	56	202,5

Teaching language

Portuguese

Objectives

This course aims to provide students with a solid knowledge of the International Business area, focusing on issues of firms’ internationalization, and strategy and impact of multinational firms, namely:

• Know key trends/patterns related to multinationals (MNEs) and internationalization
• Master concepts and theories related to MNEs and internationalization
• Understand motivations for internationalization
• Identify strategic choices related to internationalization
• Understand the modern MNE and headquarters-subsidiary relations
• UnUnderstand the impact of MNEs’ activities
• Understand the regulatory framework underpinning FDI; policies/institutions

Learning outcomes and competences

Learning outcomes:
The student should be able to:
- Identify the main concepts and main theories related to internationalization.
- Distinguish and evaluate internationalization strategies, identifying advantages and disadvantages;
- Analyze critically real internationalization cases;
- Identify the impacts arising from MNEs activities.

Competencies related to:
- discussion of internationalization strategies
- presenting in public
- teamwork and consensus-building
- consultancy in the area of internationalization.

Working method

Presencial

Pre-requirements (prior knowledge) and co-requirements (common knowledge)

Not applicable

Program

I. Multinationals and Internationalization: background concepts, trends and patterns.
II. Theories related to foreign direct investment (FDI) and to the activities of multinational enterprises (MNEs). Motivations and drivers for FDI and for international production.
III. Modes of entry and modes of establishment in foreign markets. Main strategic choices available (exports, contractual forms, and FDI): pros and cons, trade-offs and implications.
IV. The internationalization process. The Uppsala Model versus other approaches (Born Globals; Network Theory).
V. The modern multinational. Headquarters-subsidiaries’ relations. Subsidiary strategies and evolution.
VI. The impact of MNEs’ activities.
VII. FDI regulation and legal framework. Public policies and institutions related to FDI and MNEs.

Mandatory literature

Dunning, John e Lundan, Sarianna; Multinational Enterprises and the Global Economy, Edward Elgar Publishing, 2008. ISBN: 978-1-84720-122-5
Ietto-Gillies, Grazia; Transnational Corporations and International Production: Concepts, Theories and Effects, Edward Elgar Publishing, 2005. ISBN: 1-84542-255-4
Vários; The Oxford Handbook of International Business, Rugman, Alan, 2009

Complementary Bibliography

Navaretti, Giorgio e Venables, Anthony; Multinational Firms and the World Economy, Princeton University Press, 2004
Forsgren, Mats; Theories of the multinational firm: A multidimensional creature in the global economy, Edward Elgar Publishing, 2008. ISBN: 978-1-84844-586-4
Hill, Charles; International Business: Competing in the Global Marketplace, McGraw-Hill, 2007
Welch, Lawrence; Foreign operation methods: theory, analysis, strategy, Edward Elgar Publishing, 2008. ISBN: 978-1-84720-926-9

Teaching methods and learning activities

Interactive sessions: the lecturer will present and discuss the course content, and it is highly encouraged that students will actively participate in the discussions, sharing their experiences and views on the topics under analysis. Students will also make a presentation of a teamwork in class (case studies).

Evaluation Type

Distributed evaluation without final exam

Assessment Components

Designation	Weight (%)
Teste	70,00
Trabalho escrito	30,00
Total:	100,00

Amount of time allocated to each course unit

Designation	Time (hours)
Estudo autónomo	130,00
Frequência das aulas	42,00
Trabalho escrito	30,00
Total:	202,00

Eligibility for exams

The distributed evaluation requires minimum attendance: 75% of the classes taught, according to RAC.

Calculation formula of final grade

Evaluation has 2 components, with the following weights:

(i) Test, representing 70% of the final marks (minimum marks: 8 on 20)

(ii) Written work, with presentation and discussion in class: 30% (groups to be defined according to the composition of the class)

Examinations or Special Assignments

Not applicable

Internship work/project

Not applicable

Special assessment (TE, DA, ...)

Students who are exempt from classes attendance are not exempt from the presentation of classroom work. In addition, according to article 11, number 3, of the RAC, special work will be required, consisting of the preparation of a two-page report, evaluating a research article provided by the lecturer.

Classification improvement

Only the Test component is subject to improvement in the Second Evaluation Period.

Observations

Students cannot pass this course based only on the final examination. All components of the evaluation process must be fulfilled.