IB914-15 Economics in the Global Environment
Introductory description
Exposure to the global economy brings new ideas, technologies, and management practices to a business. Whether the business is looking to build a new plant, sell to a new market, or find global business partners, exploiting opportunities in new markets or regions poses fresh challenges. Which countries and regions will see markets develop quickly in the medium term? What are the macroeconomic risks? How will the new business opportunities transform the organisation?
Module aims
This module provides real world examples and case studies which illustrate how economic thinking helps businesses make the most of new opportunities while managing the risks associated with expansion into new markets and regions. The module is pitched at the same level as The Economist magazine, with no mathematics or previous economic analysis required. The topics covered draw on ideas and research from macroeconomics, microeconomics, international finance, energy, resources, development and labour economics. The module teaches introductory economics, from a global perspective, extending the range of applied topics covered in Economics for Management and Business.
Outline syllabus
This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.
Day 1 -- Introduction, module structure, assessment, basic intertemporal macroeconomics, investment and savings, case studies include retail in India and DeLorean Motors
Day 2 -- The determinants of long-run economic growth, theory and evidence, with sessions on development, international macroeconomic issues (emphasising institutions), oil, commodities and exchange rates
Day 3 -- Tranforming a business to take advantage of opportunities in a new region or country, including topics on labour economics, research and education, industrial relations, and a case study of US Steel in Canada
Day 4 -- The economics of imperfect competition, the role of governments, political strategic thinking, resources and energy management, patents, intellectual property, bribes, case study of canning industry in Australia
Day 5 -- Understanding and predicting shifts in government policy, case studies from post-WWII UK economic growth, economic uncertainty, debt crises and optimal currency areas, review, recap on assessment, questions and answers
Learning outcomes
By the end of the module, students should be able to:
- Understand how economic analysis can be applied to new business opportunities in new regions or countries, with an emphasis on emerging markets
- Experience ways in which the tools of economic analysis can be applied to understand economic growth, resources, energy, development and the global economy
- Awareness of the basics of macro theory, macro institutions and foreign exchange markets
- Appreciate the transformations required for a business to exploit opportunities in new regions and countries
- Understand the behaviour of the global economy, and financial markets, and in particular how these influence business decisions
- Appreciate and be able to utilise a variety of tools from applied economics
- Understand better the determinants of long-run economic growth, particularly in emerging markets
- Use economic thinking to understand the risks associated with business ventures in new markets and regions
- Ability to learn and remember new information, speech, writing, understanding evidence
Indicative reading list
Textbook: Begg, D.; Vernasca, G.; Fischer, S. and Dornbusch, R. (2014) Economics (11th ed) Maidenhead; Berks: McGraw-Hill Education (UK) Ltd
"The International Monetary Fund: 70 Years of Reinvention", Journal of Economic Perspectives, Vol. 30 No. 1 (Winter 2016) p 328, Carmen M. Reinhart and Christoph Trebesch
"The World Bank: Why It Is Still Needed and Why It Still Disappoints", Journal of Economic Perspectives, Vol. 30 No. 1 (Winter 2016) p 77-94 Martin Ravallion
"Forty Years of Oil Price Fluctuations: Why the Price of Oil May Still Surprise Us", Journal of Economic Perspectives, Vol. 30 No. 1 (Winter 2016) p 139-60 Christiane Baumeister and Lutz Kilian
"Using Natural Resources for Development: Why Has It Proven So Difficult?", Journal of Economic Perspectives, Vol. 30 No. 1 (Winter 2016) p 161-84 Anthony J. Venables
Subject specific skills
Assessing risk to business, projecting economic growth, resource management.
Transferable skills
Persuasive writing, statistical analysis, theoretical analysis, problem solving.
Study time
| Type | Required |
|---|---|
| Lectures | 10 sessions of 3 hours (20%) |
| Private study | 120 hours (80%) |
| Total | 150 hours |
Private study description
Preparation for assessment, pre-reading, self-study work
Costs
No further costs have been identified for this module.
You must pass all assessment components to pass the module.
Assessment group A1
| Weighting | Study time | Eligible for self-certification | |
|---|---|---|---|
Assessment component |
|||
| Essay | 100% | Yes (extension) | |
Reassessment component is the same |
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Feedback on assessment
Written feedback on the submitted essay
Courses
This module is Optional for:
- Year 1 of TIBS-N120 Postgraduate International Business
- Year 1 of TIBS-N1C3 Postgraduate Taught (Financial Management)
- Year 1 of TIBS-N1C2 Postgraduate Taught Business (Accounting & Finance)
- Year 1 of TIBS-N1B0 Postgraduate Taught Business (Marketing)
This module is Option list C for:
- Year 1 of TIBS-N2N1 Postgraduate Taught Management