POL30820 Political Risk and Foreign Direct Investment

Academic Year 2022/2023

This course provides an introduction and a review of the field of political risk - a field that focuses on the socio-political events, characteristics and processes that can negatively impact the multinational companies' achievement. More specifically, it involves the often conflictual interface between foreign investors and host country governments. The lectures support to several branches of scholarly literature, including the literature on international business, international political economy, civil and corporate social responsibility, comparative politics and, not least, international politics. Many topics will be discussed in the course, viz., economic nationalism, the relationship between governance and foreign investors; natural resource sector and political risk, security risk, expropriation and nationalization; obsolete bargaining mechanism risk; regime type and political risk; risk of extraterritoriality; and political risk analysis. Thus, the course provides a deeper understanding on various types of political risks which affect the goals of multinational companies. The course also discusses various different types of instruments which help multinational companies stave off political risk.

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Curricular information is subject to change

Learning Outcomes:

1. Basic understanding of theories on FDI and political risk.
2. Understanding and distinguishing various types of political risk.
3. Ability to assess in detail the various types of political risks affecting FDI.
4. Why political risk varies from country to country?
5. Ability to select the appropriate risk mitigation strategy for a range of different types of political risks facing FDI.
6. Understanding political risk analysis applications and assessment techniques.

Indicative Module Content:

The key topics that will be addressed in this module include:

FDI theories, the relationship between governance and foreign investors, economic nationalism; natural resource sector and political risk, security risk, expropriation and nationalization; regime type and political risk. The other key topics include: political risk analysis and identifying various types of instruments which help multinational companies stave off political risk.

Student Effort Hours: 
Student Effort Type Hours
Lectures

20
Autonomous Student Learning

200
Total

220
Approaches to Teaching and Learning:
The teaching and learning approaches used in this module will be as follows:

1. Classroom lectures & discussions.
2. Intensive class discussions.
3. Critical writing; Review of published research work.
4. Problem-based learning.
5. Case study-based learning.
 
Requirements, Exclusions and Recommendations
Learning Recommendations:

Students who intend to take this module are strongly recommended to have completed Level 2 Politics or its equivalent, AND relevant economics modules. The module is designed for those who are interested and want to specialize in the field of: International Political Economy, Comparative Political Economy and International Development Studies.


Module Requisites and Incompatibles
Equivalents:
Pol Risk & Foreign Investment (POL30440)


 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Class Test: There will be a one-hour class test covering 25% of the overall weighting towards the end of the trimester. Week 12 n/a Graded No

25
Class Test: There will be a one-hour mid-term class test covering 25% of the overall weighting. Week 7 n/a Graded No

25
Essay: Take home Essay Paper Throughout the Trimester n/a Graded No

50

Carry forward of passed components
No
 
Resit In Terminal Exam
Spring No
Please see Student Jargon Buster for more information about remediation types and timing. 
Feedback Strategy/Strategies

• Feedback individually to students, post-assessment

How will my Feedback be Delivered?

A detailed written feedback is provided to each student on the term paper assignment (i.e., take home exam) within 20 working days of the deadline for the assignment in according with university policy.

Timetabling information is displayed only for guidance purposes, relates to the current Academic Year only and is subject to change.
 
Autumn
      
Lecture Offering 1 Week(s) - 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12 Thurs 13:00 - 13:50
Lecture Offering 1 Week(s) - 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12 Tues 14:00 - 14:50
Autumn