Over the last few decades, markets have significantly increased their extent of globalisation. Flows of several types of inputs (e.g., products, capital, and information) have increasingly become international. Even though the recent global economic crisis has caused declines in the internationalisation of many of these flows, we are nowadays in a much more interconnected and globalised world than twenty years ago. Firm-level data corroborate the notion that companies are even more globalised than markets. We do not only witness that larger companies tend to rely more extensively on cross-border operations, but also that small and medium-sized enterprises (SMEs), especially in Western Europe, also often expand outside of their home country. In particular, the recent progresses of information and communication technology has given companies, irrespective of their size, the opportunity to fine-slice their value chain and relocate each of their value activities to where they can be most efficiently performed. This phenomenon, generally referred to as “offshoring”, has contributed to a substantial reconfiguration of the modern multinational corporation (MNC).

In this context, attention to globalisation has become essential. This course prompts students to think systematically about the globalisation of markets and firms as well as the related phenomenon of “offshoring”. Students are introduced to rigorous theoretical frameworks that help them in the proper identification of cross-country differences and in the assessment of how such differences affect the strategic decision-making processes of MNCs. The course is designed to be primarily practically relevant. Particular attention is devoted to discuss the implications of globalisation and offshoring for businesses. To this end, the course adopts a case study approach to facilitate the active engagement of students with real-world international business scenarios.

Examples of questions that will be addressed include:

• How globalised are we today? What is the real extent of globalisation in today’s markets and firms and how will the degree of globalisation develop in the future?
• How do countries differ among themselves and how does this affect the strategic decision-making of MNCs?
• What is business process offshoring? How big is the offshoring phenomenon and what are the firm-, industry-, and country-level consequences of such a phenomenon?
• What are the opportunities and challenges of today’s globalisation? How should companies think strategically to optimise their global potential?
• How should we evaluate cross-country differences and globalisation-related matters when it comes to analysing the specifics of a business case?

Upon completion of this course, students have the ability to:

• explain in detail the notions of “globalisation of markets and firms” and contextualise the recent phenomenon of offshoring;
• use theoretical frameworks to identify cross-country differences and model their business implications;
• apply appropriate frameworks to evaluate the strategic decision-making process of MNCs in a semi-globalised business landscape;
• critically evaluate the applicability and use of theoretical frameworks for thinking systematically about globalisation and offshoring;
• show managerial ability to work in an international team to assess globalisation-related issues and their practical implications for firms;
• cooperate and communicate constructively in multidisciplinary and international teams of students.

The following teaching and learning methods will be used throughout the course:

• Case studies
• Research exercises
• Interactive in-class discussion accompanied by trainings, videos, and presentations

The grade is composed of 40% individual assessment and by 60% group grading. 

The final grade will be based on the following elements:

Individual (40%):

1. Participation in class (20%)
2. Peer review (20%)

Group (60%):

1. Final case analysis (40%)
2. Commentary on other's final case analysis (20%)

An obligatory entry exam constitutes the beginning of the major International Business. Please note that you will not be able to participate in this course if you do not pass the entry exam, are not accepted as student of the major International Business, and have not completed the two basic courses (1-2) Foundations and Applications. Students who do not fulfil those requirements will automatically be deregistered from this course.

Incoming/Exchange students do not need to fulfil those requirements. 

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