Module Identifier ECM4110  
Academic Year 2003/2004  
Co-ordinator Mr Nicholas Perdikis  
Semester Semester 1  
Co-Requisite MBM1010  
Course delivery Lecture   18 Hours  
  Seminars / Tutorials   3 Hours  
Assessment TypeAssessment Length/DetailsProportion
Semester Exam2 Hours  70%
Semester Assessment Group Project  30%
Supplementary Exam Resit on main exam; resubmission of projects possibly in different format   

Learning outcomes

On completion of this module students should be able to:

i) place business relations in an international context
ii) carry out analysis and evaluate arguments
iii) interpret statistics
iv) present material both orally and in written form
v) carry out tasks independently and within groups
vi) manage their time effectively
vii) be critical in thought and outcome

Brief description

The intention of this module is to equip students with a thorough understanding of the main opportunities and problems that face firms when making their decisions to operate internationally. Specific issues covered include the mode of internationalisation. Payment and Exchange rate risks, Risk Assessment, Arbitration Procedures.


To acquaint students with the factors that determine and influence international business activity both globally and in a European context.


1. Institutional Background

Domestic and International Relations
International Economic Institutions
Regional Economic Blocs and Groupings

Kerr and Perdikis, Chs 4, 5, 6
Davies, Chs 1 and 6
Hills, Chs 1 and 2
Stonehouse et al, Ch 1
Segal-Horn, Ch 1

2. Statistical Background

The Growth, Pattern and Structure of International Trade
Financial Flows
Foreign Direct Investment and Multinational Activity
Inter Regional Linkages ? The Triad ?

World Trade Organisation (WTO) 2000 Annual Report, Vols I and II,
Hills, Chs 1 and 2

3. The International Economic Environment

Internationalisation, Globalisation and Regionalism
The Political Economy of National Protection
Implications for Business

?Globalisation and its critics?: A survey of globalisation, The Economist, 29 Sept, 2001.
?The Case for Globalisation?, The Economist, 23 Sept, 2000.
Rugman, A (2000) The End of Globalisation, Random House Business Books, Ch 7.
Dunning, J H (1996) ?Globalisation, Foreign Direct Investment and Economic Development?, Economics and Business, Vol.2, Part 2, No.14.
Kerr and Perdikis, Chs 3 and 4
Vietor, H K and Kennedy, R E, Ch 2
Hills, Ch 5
Stonehouse et al, Ch 1 and 2
Segal-Horn, Chs 2 and 3

4. Why Nations Trade and What They Trade

Comparative Advantage
Supply Side Factors
Demand Side Factors
Competitive Advantage
The Determinants of Location

Kerr and Perdikis, Ch 2
Davies, Introduction
Hills, Ch 4
Stonehouse et al
Vernon, R (1966) ?International Investment and International Trade in the Product Cycle?, Quarterly Journal of Economics, pp.190-207.
Vernon, R (1979) ?The Product Cycle Hypothesis in a New International Environment?, Oxford Bulletin of Economics and Statistics, Vol.41 (4) pp.255-267.
Porter, M E (1990) The Competitive Advantage of Nations, New York: Free Press.
Grant, R M (1991) ?Porter?s Competitive Advantage: An Assessment?, Strategic Management Journal, (12) pp.535-548.

5. The Company and Internationalisation

Push Factors and International Factors
Pull Factors and the External Environment
The Determinants of Success

Kerr and Perdikis, Ch 11
Davies, Ch 1
Hills, Ch 15
Stonehouse et al, Chs 4 and 5
Segal-Horn, Ch 8.
Hilbert, E P (1990) ?The Internationalisation of Business: Theory and Evidence?, International Marketing Review, Vol.7, No.4.
Cook, M (1998) ?The Internationalisation of Business?, Teaching Business and Economics, Vol.2, No.3.

6. Multinationality

What is a Multinational
Why Do Multinationals Exist
The Location Decision
Macroeconomic and Industrial Effects

?Multinationals Survey?, The Economist, 24 June, 1995
Dunning, J H and McQueen, M (1981) The Eclectic Theory of International Production: A Case Study of the International Hotel Industry, Managerial and Decision Economics, Vol.2.
Kerr and Perdikis, Ch 11
Hills, Chs 6 and 7
Segal-Horn, Ch 9

7. The European Economy

Background, Geography, Economics
Integration and Development
From the EEC ? EU

Davies, Ch 6
Hills, Ch 8
Hansen, Chs 1 and 10

8. European Union ? 1 - Deepening

Single European Market Rationale
Fortress Europe
European Monetary Union

Vietor, H K and Kennedy, R E, Ch 7
Hills, Ch 8
Hansen, J D, Chs 5 and 8
Piggot, J ?The Single European Market and Beyond?, in Piggot, J and Cook, M (eds) (1993) International Business: A European Perspective, Longmans.
Jackman, R (1997) ?EMU Convergence or Divergence?, Centre Piece, Vol 4, No.4.
Tucker, E ?No Appetite to Change the Mix?, Financial Times, 31 Oct, 1996.
Minford, P (1997) ?Why Not a Single Currency?, Economic Review, Vol.14.

9. European Union ? 2 - Widening

The Process of Widening
Integration of Eastern Europe
Implications for European Business

Hansen, Ch 9
Davies, Ch 8
Hare, D (1996) ?Transition to the Market Economy: Achievements and Lessons?, Economics and Business Education, Vol.4, Part 3, No.15.
Baldwin, R E, Francois, J and Portes, R (1997) ?The Costs and Benefits of Eastern Englargement: The Impact on the EU and Central Europe?, Economic Policy, 12, 24, pp.125-176.
Carlin, W, Estrin, S and Schaffer, M (1999) ?Measuring Progress in Transition and Towards EU Accession: A Comparison of Manufacturing Firms in Poland, Romania and Spain?, European Bank for Reconstruction and Development Working Paper, No.40.

10. Postscript

Reading Lists

C W L Hill (2000) International Business - competing in the global market place McGraw-Hill
W A Kerr and N Perdikis (1995) The Economics of International Business Chapman and Hall
B Dawes (ed) (1995) International Business: A European Perspective Stanley Thornes, Cheltenham
P Lawrence (1995) Issues in European Business Macmillan Business


This module is at CQFW Level 7