Global Business Economics

This subject has the following teaching availabilities in 2014:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

Global Business Economics examines the broad environment in which firms operate and explains factors that affect the output growth, inflation, unemployment, interest rates, and exchange rates of a country in a globalized world. These economy-wide variables are beyond a firm’s control but critically influence the decision-making of any firm. The course presents a macroeconomic framework to illustrate the dynamic inter-connections among markets (such as those for financial assets, goods and services, labour, and money) and government policies. With the aid of country case studies and current policy research, the course aims to demonstrate that economics is not primarily a set of answers but a set of frameworks and a method of reasoning.

Having completed the course, a student should be able to read The Australian Financial Review or The Economist intelligently, and make informed judgements on questions of economic policy. The course seeks to demystify economics and to enable students to form their own opinions on economic issues. A related aim is to prepare future general managers to deal with professional economists, both those on their own staff and those in government.

On completion of this subject, students should be able to:

• Obtain useful economic data and explain basic economic terminology and concepts;
• Describe the forces governing economic growth and fluctuations in GDP;
• Use economic models to explain business cycle fluctuations, unemployment, and inflation;
• Evaluate the role and motivations of central banks in conducting monetary policy;
• Evaluate the role and motivations of governments in conducting fiscal policy;
• Read a country’s balance of payments accounts and explain the factors governing exchange rate movements and the associated movements in the current and capital accounts.

• Class contribution (10%)
  • Equivalent to 500 words
  • Throughout subject
• Case preparation and discussion (10%)
  • Equivalent to 500 words
  • Throughout subject
• Syndicate report and presentation (40%)
  • Equivalent to 2,000 words per individual
  • During second module
• Individual assignment (40%)
  • Hurdle requirement
  • 2,000 words
  • After completion of first module

This subject is not available as a breadth subject.