Vorlesung, SWS:3, VL Number: 34064
Lecturer
Course description
Empirical evidence suggests that the exposure to trade is not too different from that observed at the beginning of the 20th century. However, the recent wave of globalization differs substantially from globalization a hundred years ago because it involves two new phenomena: the international fragmentation of production processes and the organization of firms across national borders.
It is the purpose of the lecture “Multinational Firms and Outsourcing” to shed light on these two phenomena. Aside from introducing workhorse models for analyzing these aspects, the lecture also offers empirical evidence for their predominance and the surge of foreign direct investment and international outsourcing in recent years.
Both the course and the exam will be in English.
Click here to entroll for the e-learning course.
Outline
Part I. Facts and figures
- Overview and definitions
- Case studies
- Stylized Facts
- Overview of existing literature
Part II. National versus international
- Dunning's OLI framework
- Horizontal and vertical MNEs
- FDI in a three-country setting
- Greenfield versus M&A
Part III. Firms and markets
- Introducing the problem
- Internal production versus outsourcing
- Specific functional forms
- Extensions
Recommended Textbooks
- Barba Navaretti, Giorgio and Venables Anthony, J. (2004), Multinational Firms in the World Economy, Princeton University Press. (BV)
- Markusen, James R. (2002), Multinational Firms and the Theory of International Trade, MIT Press. (M)
- Brakman, S., Garretsen H. (2008), Foreign Direct Investment and the Multinational Enterprise, MIT Press. (BG)
Grading
Grading of the course is based on active participation and a written exam (1h). If the number of participating students is less than 5, an oral examination may replace the written one. (Students will be informed about the form of examination as soon as possible.)
Organization
Lect 4h, Thu 10 a.m. - 2 p.m.,
The course is blocked from 15.04.2021 - 27.05.2021.
This course will be uploaded.
Noteworthy: The language of the course is English.