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Globalisation of Economic Activity 7,5 Credits

Course Contents

This course provides an understanding of the evolution of foreign direct investment and the multinational corporation (MNC). Introduction to multinationality with focus on the RBV (capabilities and core competencies). Discussion of Barney’s VRIN attributes and the concept of dynamic capabilities is methodically embedded in the general structure of the course.

Departing from the RBV of the firm, the concept and the degree of multinationality (i.e., the degree of international presence and commitment) is analyzed in relation to chosen case companies. Classical descriptions of MNC organizational structures (the M-form and other, newer organizational forms) are discussed.

Special emphasis is placed on the way the modern MNC organizes its activities and how this determines their relations with other firms. This set of lectures departs from two theories (transaction cost economics and network theory), which describe relationships among actors. The two theories are discussed in relation to the MNC, and its organizing and internationalization processes. Innovation will be considered from several perspectives, including the diffusion of innovations and innovation management for competitive advantage. Evolutionary perspective on the technological change are presented. Cross-sectoral and cross-regional patterns of globalization are identified. The benefits and complications of IT in globalized economy and the role of IT in MNCs are discussed.

A separate set of lectures defines the basic concepts of institutional theory. The focus here is on institutional theory and legitimacy. Specific features of multinationals from emerging economies, similarities and differences with MNCs from developed countries. Positive and negative effects of globalization are viewed in terms of environment, MNC corporate social responsibility and general income distribution effects.


Bachelor's Degree in Business or Economics (i.e the equivalent of 180 credits at an accredited university).

Level of Education: Master
Course code/Ladok code: JGER27
The course is conducted at: Jönköping International Business SchoolLast modified 2017-09-28 16:25:09