In this course, we learn about international political risk and strategy of investors by studying publicly available investor-state dispute settlement (ISDS) cases.

In the first part of the course, we start with an introduction to political risks and exposure of foreign investors to these risks. This is accompanied by in-depth discussion of the quantification and analysis of the risks.

In the second (and main) part of the course, we use real world cases of international arbitration to uncover details about firm strategy in response to political risks. Firms exposed to political risk frequently have relied on independent international arbitration courts to file lawsuits, if they perceive that their rights as investors were violated in a host country. Many of them have been settled, won or lost by foreign investors. The details about the events and the actors involved are to a large degree publicly available in legal documents provided by the arbitration courts. Based on inputs and a critical introduction of the benefits and dangers of international arbitration, we will study how foreign investors, stakeholders and public officials interact with each other and how this is costly but also offers strategic advantages to them.

The latter part is contextualized and discussed in more detail in the third and final part of the course. Together with a wider set of investor strategies in response to political risk, we discuss the varieties of firm strategies in response to political risks and investigate how international arbitration at times substitute and complement them. We close the course with a critical discussion of the implications of international arbitration for firm strategy.

• A deep understanding of political risks in international business
• Advanced analytical techniques and approaches to show the political risk exposure of foreign investors and overview of the strategic implications of these risks
• A sound understanding of the role and inner workings of international arbitration in context of political risk
• In depth understanding of the mechanisms of how exposure does translate into damage from analyzing real world case studies
• Broad insights in critical role of international arbitration in investor strategy
• A critical view of international arbitration as substitute or complement to the set of international strategies of foreign investors to manage political risks
• A comprehensive overview of the role of law and legality in the area of international management

The course is held in presence mode. At least 80% attendance it mandatory for successful completion of the course.

- Analyse your own case (case study method)

- Review and discuss cases with your peers

- Learn about the research on the role of International Arbitrate and International Strategy

- Critically reflect on International Arbitration

- (Raise questions and add new topics and insights to the seminar)

- Short presentation and answering open questions = 30 % (20 minutes total)

- Short written report  = 30 % (report 2-4 pages max., peer review 1 page)

- Short in class assignment = 40 % (up to 6 open questions)

== 100 %

Bonus credits: critically review presentation of one peer in class = up to 10 %

A pass requires at least 60 %

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.

Email: Simon. Hartmann@wu.ac.at
Via Zoom (via link - request of appointment via email)