1. Foreign Direct Investment Spring 2009
Hwy-Chang Moon
Professor of International Business & Strategy
Graduate School of International Studies
Seoul National University
Office: 614 & 615
Class
Thu 9:00 – 12:00 (Room 101/140-1)
Office Hours
Tue & Thu: 1:20 - 2:20 pm or by Appointment

2. Course Description
Globalization is very important in almost every field of business. In the past, international trade was the main tool of globalization. However, in today's business environment, foreign direct investment (FDI) is often more appropriate than international trade in achieving some strategic goals of firms and countries. This course will help class participants understand the key issues of FDI and formulate related strategies. The first part of the course deals with the basics of FDI: the strategic importance of FDI, its impacts on national economies, and related government policies. The second part of the course focuses on more in-depth analyses: the formal FDI models and their applications in the real world.

3. Course Materials Grading [total 100%]
There is a reading packet of related articles and cases.
Students should read the materials before class, so class
meetings can be used for discussion rather than just
for straight lecture.
Grading [total 100%]
Professional Behavior: attitude, attendance, participation (20%)
One page summary of readings for each class (20%)
Group Project: Oral presentation (20%)
Individual Project: Written report (20%)
Final Exam (20%)

4. Project Assignments Attendance
There are two projects: a group presentation and an individual
written report. Specific information about the projects will be
given later. Students are expected to choose their own topics
and group members.
Assignments
All assignments must be completed in the form of either 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 and will lose points for absences regardless
of the reasons. Students who miss more than two classes may
not receive a grade. Latecomers and those chatting with other
people distract the class and may be penalized.

5. Class Schedule Part 1: Basics of FDI Class 1 (3/5) Introduction
Preview of the course
Important issues of FDI
Class 2 (3/12) FDI as a Means of Global Strategy
Globalization of a Firm
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 (3/19) FDI Impacts on Host and Home Countries [Group 1]
Reich, 1990, Who is us? Harvard Business Review
Reich, 1991, Who is them? Harvard Business Review
UNCTAD, 2006, World Investment Report: Ch.5, Impact on Home and Host Developing Economies
Class 4 (3/26) FDI Policies [Group 2]
Kim & Moon, 2000, Contrasting models of corporations, Harvard Asia Pacific Review
Moon & Bark, 2001, Asian economic crisis, FDI and stabilized economic growth, Journal of International Business and Economy
Bark & Moon, 2007, The role of inward FDI: A case study of foreign firms in Korea, Routledge and UNCTAD
Class 5 (4/2) Recent Trends of FDI [Group 3]
UNCTAD, 2007, World Investment Report: Overview
UNCTAD, 2008, World Investment Report: Overview

6. Class 6 (4/9) Investment Promotion Agencies (IPAs) [Group 4]
Western Cases: USA, U.K., Ireland, the Netherlands, Denmark, France
Asian Cases: China, Japan, Singapore, Dubai, Hong Kong, Korea
Class 7 (4/16) Regional or Global? [Group 5]
Rugman and Verbeke, 2004, A perspective on regional and global strategies of multinational enterprises, Journal of International Business Studies
Ghemawat, 2005, Regional strategies for global leadership, Harvard Business Review
Project: One-page executive summary for each group
Part 2: Formal FDI Models and Their Applications
Class 8 (4/23) Conventional Perspective [Group 1]
Moon, 2004, The evolution of theories of foreign direct investment, Review of Business History
Dunning, 2000, The eclectic paradigm as an envelope for economic and business theories of MNE activity, International Business Review
UNCTAD, 2006, World Investment Report: Ch 4, Drivers and determinants
Class 9 (4/30) New Perspective [Group 2]
Moon & Roehl, 2001, Unconventional FDI and the imbalance theory, International Business Review
Moon, 2004, A formal modeling of the imbalance theory to explain two directions of foreign direct investment, Journal of International Business and Economy
Moon, 2007, Outward foreign direct investment by enterprises from the Republic of Korea, in Global Players from Emerging Markets: Strengthen Enterprise Competitiveness through Outward Investment, UNCTAD, New York and Geneva: United Nations.

7. Class 10 (5/7) Real World Evidences [Group 3]
Tschoegl, 2002, FDI and internationalization: Evidence from U.S. subsidiaries of foreign banks, Journal of International Business Studies
Ivarsson & Jonsson, 2003, Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden, International Business Review
Moon & Yin, Working Paper, New patterns of Chinese outward foreign direct investment: An organizing framework and empirical investigation.
Class 11 (5/14) Global Strategy & Entry Modes [Group 4]
Farrell, 2004, Beyond offshoring: Assess your company’s global potential, Harvard Business Review
Moon, 1997, Choice of entry modes and theories of FDI, Journal of Global Marketing
Class 12 (5/21) Cooperation through FDI [Group 5]
Ramamurti & Doh, 2004, Rethinking foreign infrastructure investment in developing countries, Journal of World Business.
Moon, 2005, Economic cooperation between Vietnam and Korea through FDI, Review of Southeast Asian Business.
Class 13 (5/28) Special Topic
Catch-up and/or Special Lecture
Class 14 (6/4) Group Project
Presentation (PPT file) & discussion
Class 15 (6/11) Final Exam
Closed book/notes
Individual Project due: Hard copy & (“ title: 2009FDI-your name”)

8. One-Page Summary and Evaluation
Your name
Class number (e.g. Class 01)
Article author & name
Summary of the article(s)
Uniqueness
Main points
Evaluation
Constructive evaluation
Possible extension

9. Group Project Topic Size Grading Schedule
Anything related to the topic of this course
Theoretical and practical
Size
5 groups
Make your own group
Grading
Group grade
Intra-group grade (to be asked in the exam)
Schedule
Class 07 (4/16): One-page executive summary
Class 14 (6/04): Presentation

10. Presentation of Class Articles
Topics
Assigned by the group in the syllabus
Content for Presentation
Content of the article(s)
Other related information
Use tables, figures, and analytical models
Schedule
Presentation during class time
Handouts

11. Individual Project 10 ~ 15 pages, single spaced
Including the title page, references, tables and figures
An abstract of words, followed by 3-6 key words
MS Word, Times New Roman 12 points
A4-sized paper with 1-inch margins

12. Research Format Introduction Literature Review
The importance of your topic
Literature Review
Related existing studies
Academic articles, books, reports, periodicals, etc.
Criticism and Improvement
Criticism on existing studies
Possible extensions
Your Study
New model
Rigorous analysis
Conclusions
Theoretical and practical implications
Further studies