BABES-BOLYAI UNIVERSITY CLUJ NAPOCA Faculty of Economic Science and Business Management

Syllabus International Investments

Year 3, Semester 6

Cluj Napoca

Course Identification Name: International Investments Type: core class Prerequisites: General economic bases in Microeconomics, Macroeconomics and International Economic Transactions Course description: Familiarizing students with the main operations specific to investments, types and characteristics of capital investments, distinctive character of foreign direct investments, their effects and the economic policies aiming at promoting and directing international investments. Course content: Foreign direct investments. Romania in the FDI context 1. Investments general notions 2. Main types of investments 3. Who are the investors? 4. Characteristics of international investments 5. International investments data and statistics Types of Foreign Direct Investments 1. Greenfield investments 2. Joint-ventures 3. International mergers and acquisitions 4. Strategic alliances 5. Other capital placements Decisional processes for international investments 1. Drivers for producing on an international level 2. Company risks analysis 3. Systematic and unsystematic risk 4. Implanting risk 5. Cost of capital analysis Country rating evaluation 1. Sovereign risk and transfer risk 2. Multiple dimensions of country rating 3. Country rating evaluation 4. International investment efficiency 5. Rating agencies FDI promotion policies 1. Typology 2. Strategies for attracting foreign direct investments 3. Strategies for directing foreign direct investments

Schedule 1. Week I Lecture Direct investments general notion, main types and particular characteristics of international investments Basic concepts investor, direct investments, portfolio investments, strategic investor Discussion Global trends in geographic and structural distribution of international investments 2. Week II Lecture Statistic indicators for international investments Basic concepts investments flows and stocks, correlations, performance indexes, potential index, trans-nationality index Discussion Case studies regarding main characteristics of foreign direct investments 3. Week III Lecture Types of investments. Joint-Venture companies Basic concepts greenfield, joint-ventures, crossed investments, associative investments Discussion International investments efficiency case studies and applications 4. Week IV Lecture Mergers and Acquisitions Basic concepts acquisitions, mergers, hostile and friendly takeovers Discussion Modalities of implanting. Applications and case studies 5. Week V Lecture Motivation and form of foreign presence within national economic environment Basic concepts functional and strategic alliances, technologic transfer Discussion Decisional process for international capital placements case studies 6. Week VI Lecture Going international process and implications for the company Basic concepts forms of international production, company risk, systematic and unsystematic risk, implanting risk, cost of capital Discussion Decisional process for international capital placements (2) case studies 7. Week VII Lecture Cost of capital analysis for foreign direct investments Basic concepts capital structure, VAN model, efficient and inefficient markets Discussion Case studies on company risk indicators 8. Week VIII Lecture Country rating and its implications on policies for attracting and directing foreign investments Basic concepts sovereign risk, transfer risk, country risk, macroeconomic folosii n analiza ratingului de ar 3

Discussion Cost of invested capital analysis case studies and applications 9. Week IX Lecture Country rating and its influence on foreign investment attracting strategies Basic concepts formal systems, rapid alarm systems, score calculation Discussion Country rating indicators applications 10. Week X Lecture Policies for attracting foreign investments Basic concepts asymmetric effects, risk classes, country report, risk index, national rating, individual strategies, non-tangible assets Discussion Formal systems importance in evaluating country risk 11. Week XI Lecture Policies for promoting foreign investments the role of specialized agencies Basic concepts promotion foreign investments, specialized institutions Discussion Main phases in designing a strategy for attracting investments case studies and project models 12. Week XII Lecture Levers and instruments for attracting foreign investments Basic concepts strategies for attracting foreign investments Discussion Policies for promoting foreign investments case studies 13. Week XIII Lecture Economic consequences of strategies of directing foreign investments Basic concepts directing foreign investments, methods, strategies and efficiency Discussion Analysis of existing projects of attracting and directing foreign direct investments 14. Week XIV Lecture Romanian economy and national policies for attracting foreign investments Basic concepts relations between state and foreign investors Discussion Delivery and presentation of student projects Grading: Student project and class participation - 40% of final grade Final examination 60% of final grade

Textbook and course bibliography 1. Postelnicu, Ctlin, Multinational companies at the beginning of the new millennium, Editura Risoprint, Cluj-Napoca, 2005; 2. Postelnicu, Gheorghe, Postelnicu, Ctlin, International Investment in the equation of economic growth, Editura Prea Universitar Clujean, Cluj-Napoca, 2001; 4

3. Postelnicu, Gheorghe, Postelnicu, Ctlin, Flows of international investments, Editura Risoprint, Cluj-Napoca, 2003. 4. United Nations Conference on Trade and Development, World Investment Report, United Nations, Geneva, 1991 2011.

Further reading: 1) Bran, Paul, Relaii financiare i monetare internaionale, Editura Economic, Bucureti, 1995; 2) By, Maurice, Relations conomoques internationales, cinquim edition, Dalloz, Paris, 1987; 3) Caves, Richard E., Frankel, Jeffrey A., Jones, Ronald W., World Trade and Payments, An Introduction, Seventh Edition, Harper Collins College Publishers, 1996; 4) Ciobanu, Gheorghe, Postescu, Gheorghe, Sisteme de comer exterior, Editura Presa Universitar Clujean, Cluj-Napoca, 2000; 5) Denua, Ioan, Investiiile strine directe n rile est i central-europene, Editura Economic, Bucureti, 1998; 6) Dunning, John H., Hamdani, Khalil A., (Editors), The New Globalism and Developing Countries, United Nations University Press, New York, 1997; 7) Marin, George, Puiu, Alexandru (coordonatori), Dicionar de relaii economice internaionale, Editura Enciclopedic, Bucureti, 1993; 8) Mazilu, Anda, Investiiile strine directe n Romnia n contextul internaionalizrii produciei, Editura Economic, Bucureti, 1994; 9) Munteanu, Costea, Vlsan Clin, Investiiile internaionale, Editura Oscar Print, Bucureti, 1995; 10) Negrioiu, Miu, Salt nainte. Dezvoltarea i investiiile strine directe, Editura Pro&Expert, Bucureti, 1996; 11) Neme, Colette, Economie Internationale, Fondements et politiques, Deuxieme Edition, Litec Economie, Paris, 1996; 12) Postelnicu, Ctlin, Corporaiile multinaionale Locul i rolul lor n economia mondial, Ed. Casa Crii de tiin, Cluj-Napoca, 1998;