Global Banking and Finance Lesson 3 Activities
Global Banking Lesson 3 Hook Activity

Time 10 minutes
Skills: n/a
Objective 3
Resources:
- Germany: Your Smartest International Investment Location (2012, March 18). Retrieved from: http://www.youtube.com/watch?v=u00Rue6ThPw

The instructor shows the short YouTube clip that was made to attract investors to Germany and ask the students:

1)      Who is the intended audience for the film?

2)      What factors did the producers cite to attract firms to invest in Germany?

3)      Was it convincing? Why or why not?

Global Banking Lesson 3 Introduction to International Investment

Time: 35 minutes
Skills: Holistic Thinking
Objective 2
Related Resources:
- Banking Lesson 3 PowerPoint
- Daniels, John, Radebaugh, and Daniel Sullivan. (2009). “Point-Counter Point: should countries limit foreign control of key industries”? International Business, Pearson, chapter 14, pp. 542–543.
- Investment (n.d.). Globalization101. Retrieved from: http://www.globalization101.org/category/issues-in-depth/investment/
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Lecture Notes Lesson 3

The instructor introduces the topic of international investment using the PowerPoint presentation and the lecture notes.

Discussion Questions:

1)      What are the different types of investments?

2)      Which investments are riskier and why?

3)      Where do most investments originate and where are most investments made and why?

4)      How does the flow of money across borders impact politics, economic development, jobs, and international trade?

5)      Who benefits from foreign investment and who does not and why?

6)      Why has foreign investment increased over the past decade? What facilitates increased foreign investments and what might slow it down?

7)      How does foreign investment impact free trade and vice versa?

*The instructor should end the class with one of the ethical dilemmas highlighted below.

Global Banking Lesson 3 Ethical Issue Activity 1

Time: 15 minutes
Skills: Holistic Thinking
Objectives 2 &3
Related Resources: n/a

Undertaking FDI, by definition, means not investing in the MNC’s home country. The instructor asks: What are the ethical dilemmas here? What are your recommendations as a (1) labor union leaders of your domestic labor force, (2) MNC executive, (3) host country official, and (4) home country official?

Global Banking Lesson 3 Ethical Issue Activity 2

Time: 15 minutes
Skills: Holistic Thinking
Objective 2
Related Resources: n/a

MNCs from developed countries often move to developing countries to take advantage of poor labor standards and lax environmental conditions. The instructor asks the students to explain how these moves can help the company, but hurt the country.  What can be done to benefit both the company and the country?

Global Banking Lesson 3 Ethical Issue Activity 3

Time: 15 minutes
Skills: Holistic Thinking
Objectives 2 and 3
Related Resources: n/a

The instructor provides the following scenario to the students:

You overhear your superior tell another manager in the company: ‘I am fed up with our nation’s companies sending manufacturing jobs abroad and off-shoring service work to lower-wage nations. Don’t any of them have any national pride?” The other manager responds, ‘I disagree. It is every company’s duty to make as much profit as possible for its owners. If that means going abroad to reduce costs, so be it.” Do you agree with either of these managers? Why or why not? Now step into the conversation and explain where you stand on the issue. Is there any ethical dilemma here?