Firms and regions in the global economy

Course goals

Content

Theory asserts that cities matter to Multinational Corporations (MNCs), and – conversely – that MNCs matter to urban economies. The former is based on the recognition that urban regions offer relevant and favorable environments to corporate activities, as suggested by evidence on actual location choices and patterns of international business activities. The latter statement is based on a view of MNCs as creators of jobs and income, and as sources of productivity, innovation, new skills and technology, directly and through spillovers. Based on these assumptions, cities throughout the world have pursued competitiveness and promotion strategies to attract and retain MNCs.
What are geographical strategies of MNCs, their drivers, how does the environment of cities figure in these? How do changing fragmentation of value chains and simultaneous expansion of knowledge networks influence agglomeration of MNCs, and the locational role of cities? What is the impact of MNCs on urban economies? What are city strategies and do they produce targeted outcomes? Should cities actively attract MNCs, as the playing field becomes more complex and the concern over corporate power grows? This course addresses a number of these questions through an agency perspective on MNCs and cities.