Foreign Direct Investment Spring 2016 Hwy-Chang Moon Professor of International Business & Strategy Graduate School of International Studies Seoul National University cmoon@snu.ac.kr Office: Bldg. 140-2, Rm 311 Class Wed. 2:30 – 5:20 (Bldg. 140, Rm. 103) Office Hours Wed. & Thur.: 1:25 - 2:25 pm or by appointment Teaching Assistant Wenyan Yin (wenyanyin2012@gmail.com)

Course Description Understanding globalization has become crucial in almost every aspect of business. In the past, international trade was the main tool for globalization. However, in today’s business environment, foreign direct investment (FDI) is often more useful for firms and countries to achieve certain strategic goals. This course will help students understand the key issues of FDI and formulate related strategies. This class deals with the basics of FDI (e.g., the strategic importance of FDI, impacts on national economies, and related government policies), and the in-depth analysis of FDI theories and frameworks. More importantly, this class extends the conventional perspectives on other important topics, including foreign entry modes, clusters, and creating shared value on both the firm and country level.

Course Materials Grading [total 100%] Textbook: Moon, Hwy-Chang. 2016. Foreign Direct Investment: A Global Perspective. Singapore: World Scientific. Other readings can also be downloaded via the SNU library proxy or will be distributed before classes. There are reading materials assigned for each class. Students must read the materials before class, so class can be conducted with discussion rather than by straight lecture. Grading [total 100%] Professional behavior: attitude, attendance, participation (20%) One page summary of readings for each class (20%) Presentations: Class presentation and project presentation (20%) PPT reports: Class presentation and project presentation (20%) Final Exam (20%)

Assignments Attendance All assignments must be completed in either Microsoft Word or PowerPoint. No hand-written materials will be accepted. All assignments are due at the beginning of class on the due date. Any late submission, without a valid reason, will be penalized. Attendance Students must attend all classes in order to receive full attendance credit, or will lose points for any absence. Students who miss more than two classes may not receive a grade. Latecomers and people distracting the class may be penalized.

Class Schedule Class 1 (3/2) Introduction Preview of the course Guidelines for course assignments Important issues of FDI Class 2 (3/9) FDI as a Means of Global Strategy Friedman, 2011, Made in the world, The New York Times Case study: Bata Shoes (Film: One Man's Multinational) One page c.v. with photo Five groups will be formed for group project and presentation of class articles Class 3 (3/16) International Players: From Western Multinationals to Global Firms [Group 1] Textbook. Chapter 1 Class 4 (3/23) International Business Strategy: From Trade to FDI [Group 2] Textbook. Chapter 2 Class 5 (3/30) The Western Perspective on FDI: From Market Failure to OLI Paradigm [Group 3] Textbook. Chapter 3 Class 6 (4/6) The Global Perspective on FDI: From OLI Paradigm to Imbalance Theory [Group 4] Textbook. Chapter 4 Class 7 (4/13) FDI Impacts on Country: From Negative to Positive Perspective [Group 5] Textbook. Chapter 5

Class 8 (4/20) Group Project Guidelines Class 9 (4/27) Recent Trends of FDI [Group 1] UNCTAD, 2015, World Investment Report 2015: Overview Vale Columbia Center, 2014, The Top 20 Korean Multinationals: Changes and Continued Growth of Foreign Investment, Columbia University (Hwy-Chang Moon and Wenyan Yin) Class 10(5/4) FDI and Cluster: From Local to Global Link [Group 2] Textbook. Chapter 6 Class 11 (5/11) Assessing the Investment Attractiveness: From Theory to Practice [Group 3] Textbook. Chapter 7 Class 12 (5/18) Entry Mode Choices: From Market Failure to Three Considerations [Group 4] Textbook. Chapter 8 Class 13 (5/25) Global Citizenship: From Responsibility to Opportunity [Group 5] Textbook. Chapter 9 Class 14 (6/1) Group Project Presentation (PPT file) and discussion Class 15 (6/8) Final Exam Open book/notes Reports due: Hard copy & Soft copy via e-mail (“e-mail title: 2016FDI-your name”)

One-Page Summary and Evaluation Please follow the format below. Your name Class name Article author & title Summary of the article(s) Uniqueness Main points Evaluation Constructive evaluation Possible extension