Global Economics and Trade

Course ID
MEC 500
Term 1
ECTS Credits

This course focuses on understanding the essential principles and tools of economic analysis that will equip you to make better managerial decisions in a global competitive environment. The approach will follow the saying that “all business is applied economics”. The course will consist of three parts. In the first part, we will study consumer and firm behavior, calculate various supply and demand elasticities, analyze costs and production decisions, and study the firm behavior under different market structures. We will conclude by examining the market failures and the government’s role in resource allocation decisions. In the second part, we will study the macroeconomic environment of business in view of domestic and international macroeconomic policies. Next, we will look at various strategic analysis frameworks, such the Porter’s Five Forces, Porter’s Diamond, SWOT, PESTEL, and others. Last but not least, we will work on developing academic research and writing skills with applications in economics.

Learning Outcomes:

  • Apply economic principles to managerial decision making
  • Understand the determinants of supply and demand for goods and services and analyze the impact of the changes in these determinants on the pricing and production decisions
  • Understand the short-run and long-run dynamics of costs and production decisions
  • Analyze and formulate competitive strategy under different market structures
  • Critically evaluate the factors determining the success (or failure) of macroeconomic policy alternatives
  • Analyze the factors behind international production and location decisions. Get an overview of the developments in international trade flows
  • Apply Porter’s Five Forces, Porte’s Diamond, SWOT, and PESTEL frameworks for strategic analysis