Foreign Direct Investment Hwy-Chang Moon (cmoon@snu.ac.kr) Wenyan Yin (wenyanyin2012@gmail.com) Class Time: Tue. 2:30 – 5:20 pm Classroom: Bldg. 140-2, Rm 202 Office Hours: Mon. 4:30 – 5:30 pm, Tue. 1:25 - 2:25 pm or by Appointment Office: Bldg. 140-2, Rm 311 or 303

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 different patterns of overseas investment by MNCs from developed and emerging economies. Based on the comprehensive knowledge on FDI, the course will also deal with competitiveness-building strategies for firms, regions, and nations, in the changing global business environment (e.g., global value chain, sharing economy). This course is divided into two parts. Part 1 deals with the theoretical foundations of FDI studies, from both conventional and unconventional perspectives (Classes 2 through 6). Part 2 deals with FDI practices and extended issues on how firms and governments can cooperate to create and sustain competitive advantages of firms and nations (Classes 7 through 13). This is an advanced course to provide students with various perspectives and in-depth understanding on the paradigm shift of competition and MNCs’ relevant global business strategies. Both theories and practices will be rigorously analyzed to help students build analytical skills, conduct rigorous research, and make professional presentations.

Grading Policy (1) Grading [total 100%] Professionalism (25%) Professionalism: attitude, attendance, and participation (25%) Weekly summary of readings for each class: Total 11 summaries (25%) Group presentations (25%) Final exam (25%) Professionalism (25%) Students should attend all classes. Those who miss more than two classes may not receive a grade. Tardiness and class disturbances may be reflected in the grade. Students are also required to know the Honor Code and apply it to all work and behavior in the class. Weekly summary (25%) Students are required to submit a one-page summary based on assigned readings for Classes 2 through 13 (11 total). Summaries should be submitted via email to cmoon@snu.ac.kr and wenyanyin2012@gmail.com at least 24 hours before class (by 2:30 pm on Monday). The weekly summary should (i) discuss what you think is the most interesting in the readings, and (ii) provide constructive criticism and variant views. The one-page summary should be approximately 400 to 500 words in length.

Weekly Summary Style and Guideline Please title your email as “FDI Weekly Summary_Class #_Your Full Name.” Your full name Class number (e.g., Class 03) Summary of the article(s) Uniqueness Main points Evaluation Constructive evaluation Possible extension

Grading Policy (2) Group Presentations (25%) Final exam (25%) In the first session of each class, the group will give the class presentation of important points from the class readings and other related information and research. Students are expected to choose their own topics and group members, which will be determined in Class 2. Further information regarding the presentations will be given later. The group should submit the presentation PPT files at least 24 hours before the class of their presentations, therefore no later than Monday 2:30 pm on the group’s presentation week. The group should prepare PPT handouts for all the students, teaching assistant(s), and the professor (preferably 4 slides per page). Final exam (25%) It will take two hours with open books and notes in the last class (Class 15). Further instructions may be given prior to the final exam.

Course Materials Required Readings Moon, Hwy-Chang. 2016. Foreign Direct Investment: A Global Perspective. Singapore: World Scientific. Readings assigned in this syllabus for each class and can be downloaded via the SNU ETL website (etl.snu.ac.kr). Students should read the materials before class, so class meetings can be used for discussion rather than by straight lecture.

Class Schedule (1) Class 1 (Mar 6) Introduction Course guideline Important issues of FDI Class 2 (Mar 13) International Players: From Western Multinationals to Global Firms Textbook, Chapter 1 (Changing nature of firms and business landscapes) Friedman, T. L. 2012. Made in the World. New York Times, January 28th. Economist. 2017. Ford Motors Courts Donald Trump by Scrapping a Planned Plant in Mexico. January 5th. Videos: (1) Made in the World, (2) The supply chain of Apple’s iPhone One page c.v. with photo Groups will be formed for class presentations. Class 3 (Mar 20) International Business Strategy: From Trade to FDI Textbook, Chapter 2 (FDI and competitiveness building for firms and nations) Moon, H. C., Rugman, A. M., and Verbeke, A. 1998. A Generalized Double Diamond Approach to the International Competitiveness of Korea and Singapore. International Business Review, 7(2): 135-150. Class 4 (Mar 27) The Western Perspective on FDI: From Market Failure to OLI Paradigm Textbook. Chapter 3 (Conventional FDI theory mainly for explaining the FDI from developed firms) Moon, H. C. 2004. The Evolution of Theories of Foreign Direct Investment. Review of Business History, 33: 105-126.

Class Schedule (2) Class 5 (Apr 3) The Global Perspective on FDI: From OLI Paradigm to Imbalance Theory Textbook. Chapter 4 (Unconventional FDI theory for better explaining the unconventional FDI from developing firms) Moon, H. C. and Roehl, T. W. 2001. Unconventional Foreign Direct Investment and the Imbalance Theory. International Business Review, 10(2): 197-215. Class 6 (Apr 10) FDI Impacts on Country: From Negative to Positive Perspective Textbook. Chapter 5 (FDI impacts on both home and host countries) Moon, H. C. and Bark, T. H. 2001. Asian Economic Crisis, FDI and Stabilized Economic Growth. Journal of International Business and Economy, 2(1): 39-55. Class 7 (Apr 17) Patterns of Chinese Outward Foreign Direct Investment Yin, W. 2015. Motivations of Chinese Outward Foreign Direct Investment: An Organizing Framework and Empirical Investigation. Journal of International Business and Economy, 16(1): 82-106. The Economist Intelligence Unit. 2017. China Going Global Investment Index 2017, pp. 1-23. Class 8 (Apr 24) Global Value Chains Yin, W. 2017. Global Value Chain: Theoretical Integration, Extension, and Empirical Analysis (Chapter 2, pp. 8-45), Unpublished Ph.D. dissertation. Seoul National University. Moon, H. C. and Yin, W. 2017. MNCs' Externalization Decision and the Effectiveness of FDI Policy: Evidence from Korean and Chinese Filmmakers' Co-productions. Working Paper.

Class Schedule (3) Class 9 (May 1) FDI and Cluster: From Local to Global Link Textbook. Chapter 6 (Extension of the scope of clusters from regional to global) Moon H. C. and Jung, J. S. 2010. Northeast Asian Cluster through Business and Cultural Cooperation. Journal of Korea Trade, 14(2): 29-53. Class 10 (May 8) Assessing the Investment Attractiveness: From Theory to Practice Textbook. Chapter 7 (Devising a comprehensive model for assessing the locational FDI attractiveness ) Moon, H. C. 2005. Economic Cooperation between Vietnam and Korea through Foreign Direct Investment. Southeast Asian Review, 15(2): 341-363. Class 11 (May 15) Entry Mode Choices: From Market Failure to Three Considerations Textbook. Chapter 8 (Introducing a more comprehensive framework for the variables of entry mode choices) Moon, H. C. and Kwon, D. B. 2010. Entry Mode Choice between Wholly-Owned Subsidiary and Joint Venture: A Case Study of the Automotive Industry in India, International Journal of Performability Engineering, 6(6): 605-614. Class 12 (May 22) National Holiday (No Class) Class 13 (May 29) Global Citizenship: From Responsibility to Opportunity Textbook. Chapter 9 (Multinationals’ co-creating values with host and home countries) Moon, H. C. and Lee, Y. W. 2014. Corporate Social Responsibility: Peter Drucker, Michael Porter and Beyond. Journal of Creativity and Innovation, 7(2): 45-74.

Class Schedule (4) Class 14 (Jun 5) Class Wrap-up Review and catch-up Class 15 (Jun 12) Final Exam Final Exam (Open book/note)