POLITICAL ECONOMY AND FOREIGN DIRECT INVESTMENT

Case Overview – This assignment is intended to give you an opportunity to apply some key concepts from this course in a real world context. Specifically, you are required to select a country of your choice (not your home country), review the country’s political economy (political, economic and legal systems) from a reputable data source such as the CIA Wold Factbook (https://www.cia.gov/library/publications/the-world-factbook/) and critically discuss the country’s attractiveness or otherwise for foreign direct investment.
Learning Objectives – This assignment requires you to explore and evaluate the costs and benefits of FDI with respect to your selected country in particular and host economies in general. It therefore, fulfils broad learning objectives related to this course. However, the primary learning objective of this assessment task is to appreciate the macro-economic causes of growth in an economy and the subsequent and/or consequential influence on FDI. Through an analysis of the political economy in this context, this assessment is also designed to evaluate your ability to apply your understanding of the political economy and country attractiveness for investment.
Advice – Remember that the political economy stresses that the political, economic and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being. The study of the political economy stresses the combined effect of factors in assessing the economic well being of a country and subsequently that country’s attractiveness as a destination for foreign direct investment. In light of this, it is expected (and even encouraged) that you will overlap and integrate your discussion around the different components of political economy (e.g. the connection between political decisions and economic management being the most obvious overlap. You will find that the following reading (located in Short Loans Online) is an excellent initial source of information on the political economy: Hill, C. (2007) International Business: Competing in the Global Marketplace 6/e. McGraw-Hill Irwin, New York, Chapter 2 (National Differences in Political Economy).
Formatting, submission and word count – Size 12 font (Arial or Times New Roman) and 1.5 line spacing. You are required to submit this assessment electronically through Turnitin. No hardcopies are required. The word count of your case study analysis is 1200 words +/- 10%. You are required to demonstrate your ability to keep within the recommended range of words while still providing a comprehensive analysis of the case. If you go above the maximum word count you will be penalised.
Requirements:

1. Analyse international business environments and assess international risk.

2. Demonstrate understanding of alternative theories, assumptions, debates, and contemporary developments in the area of international business.

3. Apply theories, models and concepts to issues relating to international trade, economic integration and country attractiveness for foreign direct investment.

4. Critically discuss issues relating to decision-making and international investment.

5. Write a critically reflective case study analysis on country attractiveness for investment.

6. Work independently and collaboratively to analyze the international business environment and communicate the outcomes of a multi-stage project in writing.

Purpose: The purpose of this assignment is to assess your capacity to draw on theory and reputable data to critically discuss a country’s attractiveness for foreign direct investment.

Description: Students apply critical thinking and problem solving in assessing theory and international business data. They effectively communicate in writing a compelling case analysis supported the relevant data and literature.

Tips: this report needs a good short formal introduction outlining the key contents of the body of the report, a body and then a conclusion highlighting the key points in the body. In a nutshell, the intro tells the reader what they are going to read, the body tells them the details and the conclusion reminds the reader of the key points. As for the body, you should include a brief par defining what the Political Economy is and why we might analyse a country through the lens of the Political Economy. Then several pars discussing the economic, political and legal aspects of your chosen country. You should follow this with a par discussing how the three aspects of the political economy are interrelated and then a par discussing the attractiveness or otherwise of your chosen country for FDI – followed by your brief conclusion.

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