Course Description
Most economic cooperation through investment and Multinational Enterprises (MNCs) between developed and developing countries occurs under asymmetric conditions. Foreign investment has created a “dependence” in developing countries on the developed countries from which the MNCs originate. This dependency extends beyond economic aspects such as capital, expertise, technology, or market dominance; it also encompasses political aspects related to international relations, diplomacy, and foreign policy. From a political economy perspective, some motivations for investment through MNCs have become instruments for one country to achieve specific political interests in another.
With developments in the era of globalization and digital transformation, the increasing significance of investment in multinational digital technology companies has become a new trend. This is expected to achieve faster economic growth. Therefore, examining this topic is crucial to comprehend what is important in assessing investment in the digital sector. Governance and regulation aspects of digital sector investment play a crucial role in creating a conducive environment for the actors involved, both technology companies and investors. Furthermore, the Resource Aspect of Investment in the Digital Sector also needs to be discussed. Today, talent with digital and financial literacy skills, digital infrastructure, and supportive and protective policies must be present and available to create a sustainable investment climate.
When discussing investment and multinational corporations, US technology companies are an indispensable topic. The emergence and dominance of major tech companies like Apple, Google, and Microsoft deserve careful attention. To some extent, the relationship between Federal Reserve Bank interest rate policy and dollar appreciation in attracting foreign investment can also be discussed. On the other hand, Chinese technology companies should also be considered. What types of regulations and support does the Chinese government provide? To what extent has this support been successful in encouraging China to dominate the Artificial Intelligence (AI) industry and ultimately attract more investment? More broadly, what dynamics exist between the state and investment actors in the two countries? Are there any differences? And many other questions need to be explored together.
The course “Investment Politics and Multinational Corporations” (PMN) is part of the International Relations (IR) study program under the concentration of International Political Economy (IPE). The focus of the course is on studies of the political economy dimensions of foreign investment and the emergence and development of multinational corporations, both in developed and developing countries. With a primary emphasis on the application of IR and IPE theories, the lecture sessions will explore the emergence and development of MNCs as more than just a phenomenon. The main issues of concern are the dynamics and power relations between states and investment actors, the characteristics of MNCs based on the country or region of origin and their implications for the global political economy, the motivations for MNC expansion to and from developing countries, and the role of the state in investment and foreign direct investment (FDI).
Expected Learning Outcome
- Explain the definitions and basic concepts of foreign investment (FDI) and multinational corporations (MNCs) based on theories and perspectives within the framework of International Relations, particularly from an international political economy perspective.
- Formulate (abstract) various solutions to the relationship between states, societies, and MNCs using an international political economy (IPE) framework.
- Identify the strengths and weaknesses of states facing MNCs through research themes.
- Conduct individual or group research, beginning with the formulation of ideas and the development of a research framework; conduct research to collect data and present the results in class discussions.
Syllabus
Read the full syllabus here.
