MM395-Firms in the Global Economy

Module Provider: International Business and Strategy
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites: IC103 Introductory Economics for Business and Finance
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2018/9

Module Convenor: Prof Davide Castellani

Email: davide.castellani@henley.ac.uk

Type of module:

Summary module description:

This module offers an integrated perspective on the (changing) role of nations and firms in the global economy. It serves as an introduction to international business, including a discussion of the essentials of international economics. By linking the different concepts in international economics and business, this module allows to 'get the big picture' and deal with key questions. What is the global economy? Why do countries trade goods and services? Why (and how) do firms go abroad and sell goods and/or source inputs? What are the economic rationales of different internationalization strategies? What are the consequences of international business activity for the nations, firms and people of the global economy?

The module is organised in three parts:

Part I: 'Introduction' This part discusses the history and structure of the globalization process and introduces the global economy, the motivations for internationalization and the data that are used to measure the resulting flows of international business activity.

Part II: 'Firms, trade, and location' This part focuses on explaining trade between countries and the firms' decision to engage in international business activity. we discuss the role of international comparative advantages, economies of scale and product differentiation, and then we move on to highlight how firms deal with all sorts of additional costs that they face when starting activities abroad.

Part III: 'Consequences of globalization' This part addresses the implications of globalization for economic growth and inequality, including a discussion of the links between open economies and capital accumulation, technology, innovation, knowledge spill-overs, poverty, skill bias, and the global income distribution.

Aims:
The module aims to offer an integrated perspective on the (changing) role of nations and firms in the global economy, and to serve as an introduction to international business, including a discussion of the essentials of international economics. In particular, the module revolves around the key questions of why (and how) to firms go abroad, and what are the consequences of international business activity for the nations, firms and people of the global economy.

Assessable learning outcomes:

On completion of the unit, students will be able to:

- understand the nature of the global economy, its causes and consequences, and its relevance for international business activities

- analyse how and why firms engage in international business activities, appreciating the benefits and costs of such internationalization choices

- relate firms' strategies to the bigger picture of the global economy

Additional outcomes:
Students will develop general analytical skills and will also master the ability to work independently under pressure of restricted time frames and make their own decisions on the organisation of their work. They will also develop generic skills for future employment and career development. The module will contribute not only to knowing, but to acting students sense of identity and relating to bigger issues in the world.

Outline content:

1. The global economy: concepts and facts

2. Trade, comparative advantage and competition

3. The role of the firm in modern international trade theory

4. Firms, location and distance

5. Managing across-borders

6. Globalization, growth and inequality

Brief description of teaching and learning methods:

Contact hours:

	Autumn	Spring	Summer
Lectures	20
Tutorials	8
Guided independent study	172
Total hours by term	200.00
Total hours for module	200.00

Summative Assessment Methods:

Method	Percentage
Written exam	70
Written assignment including essay	30

Summative assessment- Examinations:
One two hour examination with a weight of 70% in the overall assessment of the module, taken in the summer term.

Summative assessment- Coursework and in-class tests:

3,000 words +/- 10% groupwork assignment, with a weight of 30% in the overall assessment of the module, normally due on week 1 of Spring term.

Formative assessment methods:

Formative feedback will be provided on a 1,000 word outline of the groupwork assignment. The submission of an outline for formative assessment is optional and will not be marked.

Penalties for late submission:
The Module Convener will apply the following penalties for work submitted late:

where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;

where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A weighted average mark of coursework and examination of 40%.

Reassessment arrangements:
By examination only (coursework will not be included in the re-assessment) in September.

Additional Costs (specified where applicable):

1) Required text books: The main textbook for this course is Beugelsdijk, S., Brakman, S., Garretsen, H., &Van Marrewijk, C. (2013) International economics and business: nations and firms in the global economy. Cambridge University Press. A more detailed list of readings e teaching materials will be provided before the beginning of the teaching term.

Last updated: 20 April 2018