MANAGING RISK IN INTERNATIONAL BUSINESS

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN322800
Module Leader Sarah Laycock
School Glasgow School for Business and Society
Subject Risk
Trimester
  • B (January start)

Pre-Requisite Knowledge

360 credit points at levels 1, 2 and 3 or equivalent in a related/relevant subject

Summary of Content

This module will help students develop an understanding of the various ways in which multinational companies (MNCs) are affected by risks in global operations, and how they may deal with such risks. The types of risks covered in the module will fall under the headings of political, legal, economic, financial, ethical and cultural. For instance, the module will explore multinational business risks, foreign exchange risks, political risk and the impact regulation on the financial situation of the company. Country studies in the module aim to develop the students' understanding of the difficulties and opportunities inherent in international business operations, including how principles of responsible management may differ between different countries.

Syllabus

The Internationalisation of Business: Strategy, Organisation and Risk Minimisation -2160 Entry modes - rewards and risks Factors Which Influence International Management of Risk National Culture and Risk Political Risks: Measurement and Management Financial Risk Management in International Businesses Foreign Exchange Risk -2160 Global Insurance Programmes

Learning Outcomes

On successful completion of this module the student should be able to:1. Discuss why risk and risk management may differ between countries2. Critically analyse the various risks faced by MNCs and evaluate a range of control measures3. Display a systematic understanding of the historic background of current exchange rate regimes.4. Discuss the management, determination, measuring and forecasting of exchange rates for a global corporation5. Examine and be able to explain the role of the insurer and broker in constructing global insurance programmes and the difficulties inherent in such programmes6. Critically evaluate the impact of political risk for a MNC and be able to discuss the management of such risk7. Discuss the issues surrounding social, ethical and environmental risks facing MNCs.8. Through country studies and case studies, be able to assess the impact of society, economy and politics on the business activities of MNCs.

Teaching / Learning Strategy

A combination of lectures, seminars, guest speakers and directed learning.

Indicative Reading

Hill, C. W. L. & Hult, G. T. M. (2020) Global business today . 11e [edition], International student edition. New York, NY: McGraw Hill Education. Cavusgil, S. T. et al. (2020) International business?: the new realities . Fifth edition, global edition. Harlow, England: Pearson. Worthington, I. et al. (2018) The business environment?: a global perspective . Eighth edition. Harlow, England?;: Pearson. Eiteman, D. K. et al. (2016) Multinational business finance . 14th ed, global edition. Upper Saddle River: Pearson. McKellar, R. (2010) A Short Guide to Political Risk. Farnham, UK; Burlington, VT: Gower. Journals: Academy of Management Annals Academy of Management Journal Strategic Management Journal Journal of International Business Studies Global Strategy Journal Business Strategy and the Environment Online Sources: Economist Intelligence Unit. 2020. The Economist Intelligence Unit. [online] Available at: <https://www.eiu.com/n/> World Economic Forum (WEF). 2020. Global Risk Report 2020. [online] Available at: <http://www3.weforum.org/docs/WEF_Global_Risk_Report_2020.pdf>

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: - critical analysis and interpretation - an awareness of national and cultural differences - personal transferable skills through group presentations in seminars.

Module Structure

Activity Total Hours
Seminars (FT) 11.00
Assessment (FT) 46.00
Tutorials (FT) 11.00
Lectures (FT) 22.00
Independent Learning (FT) 110.00

Assessment Methods

Component Duration Weighting Threshold Description
Report n/a 70.00 35% 3000 word individual coursework report
Individual Essay n/a 30.00 35% 2000 word essay