Foreign Direct Investment

Name of module

Foreign direct investment – location shift

Target group(s)

Students of economics, social sciences and business administration

Level (Bachelor, Master)

Bachelor

Years of study

3rd

Required knowledge

Basic micro- and macroeconomics

Number of hours (total, % of face-to-face)

120 (50%)

Credits granted

6

Learning objective(s)

To provide students knowledge and understanding of main subjects and processes observed in the world economy, especially FDI

Building students awareness of major issues concerning economic aspects of FDI flows and their consequences

Enabling students to acquire basics of investment appraisal
Making students able to analyze current trends in FDI policies in Europe

Content

1. Foreign direct investment – theoretical aspects

    1.1. Foreign direct investment – definition and data sources

      1.1.1. Foreign direct investment and portfolio investment

      1.1.3. The internationalization of research, development and production

2. The theory of international capital flows

3. Risk of FDI

4. Components of FDI flows

    4.1. Factors contributing to the recovery

    4.2. FDI performance and potential

    4.3. International investment agreements

5. Implications for host and home countries

    5.1. FDI and implications for the international division of labour.

    5.2. Reverse technology transfer implications

    5.3. Market expansion implications

    5.4. Home country concerns

    5.5. Human resource implications

    5.6. Contributions to industrial upgrading

6. FDI in the world economy in the XX and XXI century

    6.1. FDI flows a structure on the world

    6.2. FDI in the Europe

    6.3. South-East Europe and CIS: FDI rises for the fourth year in a row

    6.4. Translational corporations on the world

7. FDI in Poland in the 1990-2005

    7.1. FDI inflows and outflows

    7.2. Structure of FDI

    7.3. Factors contributing to the recovery

    7.4. Policy developments: diversity in policy approaches

    7.5. Prospects: further FDI growth expected

8. Relevance of FDI for development of polish economy

    8.1. FDI – competitive pressures in markets economies and stimulate technology transfer and innovative activity

    8.2. Foreign direct investment and trade

    8.3. Foreign direct investment as important driver of economic growth

      8.3.1. FDI and balance of payments

      8.3.2. FDI and budget of the state

      8.3.3. FDI and labour market

Teaching methods

  • Lectures – lectures covering specific theoretical aspects of the subject; slides, multimedia presentations, film
  • group work – solution of given tasks and examples during classes
  • case studies – solution of case studies related working capital management and equity capital
  • discussions –  discussion focused on solving given problems related to areas of FDI
  • individual work  – solution of given practical examples and exercises

Material, sources, literature

  • A. Buckley: Inwestycje zagraniczne: składniki wartości i ocena: wykorzystanie teorii opcji rzeczywistych. PWN, Warszawa 2002
  • W. Karaszewski: Bezpośrednie inwestycje zagraniczne: Polska na tle świata. Wydaw. Dom Organizatora, Toruń 2004
  • Bezpośrednie inwestycje zagraniczne na świecie i w Polsce: tendencje, determinanty i wpływ na gospodarkę. UNCTAD, Ministerstwo Gospodarki, Warszawa 2002
  • Bezpośrednie inwestycje zagraniczne w podnoszeniu konkurencyjności polskiej gospodarki. Pod red. nauk. W. Karaszewskiego, Wydaw. UMK, Toruń 2005
  • World Investment Report 2005. Transnational Corporations and the Internationalization of R&D. United Nations, New York and Geneva 2005
  • W. J. Jansen, A. Stokman: Foreign direct investment and international business cycle comovement. European Central Bank, Frankfurt am Main 2004
  • G. Faggio: Foreign direct investment and wages in Central and Eastern Europe. Hamburgisches Welt-Wirtschafts-Archiv, Hamburg 2003
  • P. Nunnenkamp: Foreign direct investment and economic growth in developing countries: how relevant are host-country and industry characteristics? Inst. für Weltwirtschaft, Kiel 2003
  • Polska Agencja Informacji i Inwestycji Zagranicznych, http://www.paiz.gov.pl/index/
  • Bezpośrednie inwestycje zagraniczne w Polsce według lat: 2002, 2003, 2004; Ministerstwo Gospodarki, http://www.mgip.gov.pl/

Main author of the module

University of Economics, Katowice/Poland;  Joanna Czech-Rogosz

Co-operating authors

 

Status of work (a) First draft b) Work in progress c) tested and finalised d) published)

b)
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