Global Banking Lesson 3 International Investment
Global Banking Lesson 3 International Investment


This lesson begins with a discussion of the different types of foreign investment. This discussion then moves to why companies investment in foreign countries. Next, it explains why governments intervene in the free flows of foreign investment and the policy instruments governments use to restrict and promote foreign investment. Finally, the discussion moves to understanding the positive and negative impacts of investment from multiple perspectives (business, social, host-county, home-country, etc.)

Relevant Module Objectives

1        Articulate the fundamentals of international investment, exchange rates, international banking.

3    Compare and contrast the current issues in global banking and finance from different perspectives.


Possible Classroom Activities

  • Global Banking Lesson 3 Hook Activity (0) 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) ...
  • Global Banking Lesson 3 Introduction to International Investment (0) The instructor introduces the topic of international investment using the PowerPoint presentation and the lecture notes.
  • Global Banking Lesson 3 Ethical Issue Activity 1 (0) 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 (0) 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 (0) This is a role-play on the benefits and detriments of outsourcing.


  • 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.
  • Germany: Your Smartest International Investment Location (2012, March 18). Retrieved from:
  • Investment (n.d.).  Globalization101. Retrieved from:  [An excellent source for understanding the basic concepts and type of foreign direct investment (FDI), why companies investment abroad, factors influencing foreign investment decisions, positive and negative effects of FDI. The statistical figures are updated annually. The latest pdf is available by the end of every summer.]
  • Lecture Notes Lesson 3

Optional Resources


Next: Global Banking Lesson 4 Global Financial Integration