Introductory description

In "Global Business Environment and Markets" we explore how international markets impact on price, cost and investment decisions of businesses with a global reach. We investigate how firms may formulate responses which preserve and bolster their competitiveness. We aim to develop students’ understanding of globalisation, and how the forces sustaining it impact on a firm’s production, sourcing and investment decisions and ultimately its profitable existence. A critical approach towards globalisation is adopted; one in which the many economic and social advances that have occurred as a result are highlighted, but also attendant drawbacks, such as increasing income disparities, environmental concerns, and the creation of a fertile environment for the emergence of giant corporations with dominant market shares. We also develop insights into how future business leaders active in global value chains can formulate responses to a changing environment which serve to preserve and bolster their organisations' competitiveness . These topics are covered through a combination of material taught via lectures, as well as syndicate work designed to enhance insight into crucial topics.

Module aims

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.

The title of the module alludes to the four subject areas taught during the module – Global; Business; Environment; and Markets. Topics covered include, but are not limited to:
A: Global
i) The Gains from Trade
Trade interactions enable many countries to bolster productivity and raise living standards
ii): Government Organisations and Trade
Multilateralism vs. Regionalism as Institutional frameworks to support cross-border interactions
iii) The Contemporary Business Landscape and the Macroeconomic Policy Response
B: Business
i) The creation of multinational enterprises (MNEs) and supply chains through cross border capital flows (Foreign Direct Investment)
ii) Relationships between FDI and Technology Transfer and company size and Innovation
iii) Perspectives on Quality
iv) Perspectives on ICT and Business
v) Contracts and Global Business.
C) Global (Part 2)
i) The new digital phase of globalisation. Wilder, less predictable era of globalisation
ii) Supply Chain Disintegration versus Integration in the electronics sector
D: Markets
i) Prices and Global Markets
ii) Approaches to Forecasting Market Dynamics
F. Environment:
Provides a point of entry to insights into the role of natural capital in relation to produced and human capital, as well as the working of energy markets
i) The depletion of Natural Capital vs Produced Capital
ii) Energy Demand, Carbon Prices and the costs of energy generation via fossil fuels and renewable sources

Learning outcomes

By the end of the module, students should be able to:

• Critically discuss how government regulatory policy in relation to economic globalisation has fashioned the markets in goods, services, technology and energy in which global and local businesses operate
• Evaluate the mechanisms by which gains arise from international trade as broadly defined across goods, services technology and finance.
• Analyse and identify the levers at the disposal of firms in establishing and sustaining competitiveness in global markets
• Critically evaluate government responses to market externalities in respect of innovation and energy policy
• Create a synthesis of analytical models with appropriate data in order to construct a business relevant narrative on a contemporary topic

Indicative reading list

Pre-Reading

A more extensive reading list, including pre-readings, is available with library links on Moodle.

Kyle Bagwell & Chad P. Bown & Robert W. Staiger, 2016. "Is the WTO Passé?," Journal of Economic Literature, American Economic Association, vol. 54(4), pages 1125-1231, December. (skip the maths unless of particular interest)
Paul Krugman (1994). Competitiveness, a dangerous obsession. Foreign Affairs pp. 28-44
Baldwin R. (2016). The Great Convergence: Information Technology and the New Globalization. Harvard University. Pages 47-78
The 'Exporting Jobs' Canard; Repeated research shows that multinational hiring abroad doesn't come at the expense of U.S. workers.
Slaughter, Matthew J. Wall Street Journal (Online); The 'Exporting Jobs' Canard; Repeated research shows that multinational hiring abroad doesn't come at the expense of U.S. workers. New York, N.Y. [New York, N.Y]. 14 June 2017

Days 1&2

Husted, S., Melvin, M. and Rakshit, A. (2013). International economics. Harlow: Pearson Education, Chapter 3
Baldwin R. (2019). The Great Convergence: Information Technology and the New Globalization. Harvard University Press, Pages 47-78

Days 3-5
Peter Marsh (2013) The New Industrial Revolution: Consumers, Globalization and the End of Mass Production. Yale University Press, Chapter 4
Peter J. Neary (2009). Foreign Direct Investment: The OLI Framework. Oxford University Online.
UNCTAD: World Investment Report 2022. UNCTAD, June 2022

Days 6&7
Charles Duhigg (2019). Is Amazon Unstoppable? The New Yorker, October 10, 2019
Rick Wartzman and Kelly Tang (2021) Which Industry Excels at Innovation? Wall Street Journal, Feb. 18, 2021 1:00 pm ET

Day 8

Baldwin R. (2019). The Great Convergence: Information Technology and the New Globalization. Harvard University Chapter 5, What's Really New?, pg. 142-176

Day 10

Final Report - The Economics of Biodiversity: The Dasgupta Review. HM Treasury. 2 Feb 2021 (Abridged version)
William D. Nordhaus (2013). The Climate Casino. Risk, Uncertainty, and Economics for a Warming World. Yale University Press - selected sections
Richard S.J. Tol (2009). The Economic Effects of Climate Change. Journal of Economic Perspectives. Spring 2009. Pages 29 –51. And subsequent updates.

View reading list on Talis Aspire

Research element

In writing their PMAs students research topics in greater depth than taught during the module. They draw on sources of secondary data and use these to contextualise points made in the essay.

Interdisciplinary

Economics, international trade, theory, regulatory policy and the impact on business, business economics models of the operation of MNEs, relationship between finance and production via the behaviour stock markets, technological and business aspects of renewable energy. The role of innovation in modern business life is a recurring theme. Challenges posed by the growing need for the careful management of the interface between the firm and the environment.

International

The module's entire focus is on globalisation and the interdependence of countries, including the various ways in which the principle economic agents of households, firms, and governments shape and interact within this environment. Not only is the course content global in nature, but the speaker line-up tends to comprise experts from a variety of countries as well as diverse cultural and gender backgrounds.

Subject specific skills

Correct use of data in business presentations and reports.
Leadership and business communication skills.
Identify profitable trading opportunities.
The correct usage of key concepts from economics.
Contextualise micro level developments in relation to global trends.
Awareness of how to manage cross-border transfers of intellectual property, and routes to the protection thereof
The role of renewable energy in long-term economic development

Transferable skills

Writing a business and academic essay that merges the use of secondary data and the creation of analytical charts with analytical perspectives. How to weave empirical perspectives into an analytical framework.
Use of numerical reasoning in resolving business conundrums
Business writing skills as required to work within a consultancy and as an input into decisions made by senior management
Foundational forecasting skills as required as an input into business decisions

Group work - how to interact with colleagues in a syndicate group setting.
Presentation skills,