After the course, the student should be able to:
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Identify which developments in the domestic and international economic environment are important for specific sectors and companies
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Apply macro theoretical concepts on articles from the media
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Analyze the macro economic situation with using the correct tools such as the 45 degree line analysis, the circular flow of income, demand- and supply framework and the parity conditions on the currency market
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Explain currency fluctuations and their impact on companies
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Identify the impact of macro-economic developments on the labour market
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Analyze government policy and its impact on the macro economy
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Examine how international economic developments may affect strategy and profitability of international operating companies
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Link the changes in the international environment to strategic choices
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Understand the localization versus globalization debate
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The course Economics is about the external environment of international operating companies and their strategic choices to react on changes in this environment. It consist of two parts. During the first lectures, the focus is on the macro-economic environment of business. The final part of the program focus on the strategic choices made by companies to react on developments abroad.
An important aspect of this business environment are the developments in macro- economic variables such as the business cycle, oil prices, interest rates, wages and the exchange rate. Research makes clear that profitability of international operating companies is heavily influenced by the above mentioned macro-economic factors; factors which they cannot control. By looking at annual reports and analyzing company-statements one may develop a sense of importance of macro-economic variables.
Work format:
Lectures, tutorials, work groups, presentations
Assessment:
Group paper and presentation (30%), final exam (70%)
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