ECM120-The Economics of the Multinational Enterprise

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Email: marina.papanastassiou@reading.ac.uk

Type of module:

Summary module description:

The module aims to provide students with an understanding of the economic theory of multinational enterprise (MNE) that can serve as a basis for practical evaluation of the behaviour and performance of those companies in a globalised world.

Aims:

The aim of the course is to provide an in-depth understanding of the evolutionÌý of Foreign Direct Investment (FDI) and the Multinational Enterprise (MNE) and analyses the crucial role they play in the global economy.

Special emphasis is placed on the way the modern MNE organizes its activities and howÌý this determines its relations with other firms as well as their impact on the economies they operate

Through its multidisciplinary nature, the course bridges together a range of disciplines with main focus on economics, international business and strategy.

Assessable learning outcomes:

• A full understanding of an economics-based approach to modelling, understanding and evaluating the MNE.Ìý


• Ability to apply a consistent analytical framework on MNEs to assessment of their role in the contemporary global economy particularly within the context of Global Value Chains (GVCs) andÌý the UN Sustainable Development Goals (SDGs)

Additional outcomes:
Encouragement to apply economic models and techniques to issues in globalisation, development and political economy.

Outline content:

Section 1:

Definition of MNE.

Reasons for a theory of MNE separate from that of foreign direct investment.

Historical emergence of MNEs.

Section 2:

The eclectic framework as an approach to MNEs.

MNEs and International Trade: Role of location and the product cycle model by Vernon/HirschÌý

The contribution of Hymer. Geography and oligopolistic reaction (ownership/com petitive advantage- Porter and Barney).

Transaction costs and Internalisation.

TheÌý MNE and theories of the firm (managerial/behavioural)

Section 3:Ìý

MNEs, Global Value ChainsÌý

MNEs andÌý Development (in the context ofÌý Sustainable Development Goals (SDGs)

Brief description of teaching and learning methods:
Lectures and class discussions. Guidance on extended reading in existing literature. Guidance on applying techniques to practical issues.

Summative assessment- Examinations:
One 2-hour unseen written paper, intended to be comprehensive of everything covered in the module.
Postgraduate examinations are held in the Summer term.

Summative assessment- Coursework and in-class tests:

Coursework comprises one essay (40% of final mark), and an oral presentation (10% of the final mark).

Formative assessment methods:

Strategic questions, in class case-analysis (groups), summaries.

Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx

Assessment requirements for a pass:
A minimum weighted average mark of coursework and examination of 50%.

Reassessment arrangements:
Re-examination for all modules takes place in August/September of the same year.
Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):
1) Required text books:
2) Specialist equipment or materials:
3) Specialist clothing, footwear or headgear:
4) Printing and binding:
5) Computers and devices with a particular specification:
6) Travel, accommodation and subsistence:

Last updated: 4 April 2020