Data Loading...
BSK497-module-guide Flipbook PDF
BSK497-module-guide
104 Views
65 Downloads
FLIP PDF 2.6MB
MODULE GUIDE
BSK497 THE GLOBAL ECONOMIC ENVIRONMENT Ma y 2 0 19
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 1 of 13
INTRODUCT ION Economics touches every aspect of our lives. When, for example, as consumers, we make spending decisions based on budgets or when we choose between saving or going on holiday. As workers or owners of businesses, we’re involved in and make decisions about production and investment and we respond to competitive forces in our industry. We’re also impacted by government decisions on things like taxes, interest rates and spending on healthcare and education. And if that wasn’t enough, the decisions we make to demand a particular good or service or to invest in a particular technology have consequences for our environment and natural resources. These are some of the many issues that economics has a lot to say about. I think Alfred Marshall, one of the greatest economists of his time, said it best when he said that studying economics is studying mankind in the ordinary business of life. So, in this module, amongst other things, we’ll talk about how markets determine prices, why countries trade with each other and how interest rates are determined. And in doing so, we’ll use both theoretical models and empirical data. Economics engages with some of society’s most serious issues and offers policies that can help address these issues. So, it’s a challenging but rewarding subject. I hope you enjoy the module and if you have any queries, please don’t hesitate to contact me.
ACADEMIC TEAM AND CONTACT INFORMATION Module leader Dr Geetha Ravishankar (Senior Teaching Fellow (Economics and Finance)) Contact: [email protected] Enquiry response time: 24 to 48 hours
Student Support Advisor Ms. Roma Sira Contact: [email protected] Office Hours: 9–5 Monday to Friday Enquiry response time: 24 hours
MODULE LEARNING OUTCOMES After completing the module, students will be able to: (1) Apply economic analysis and models to strategic questions faced by businesses (2) Understand market structures and the nature of competition in relation to businesses (3) Understand the effects of the macroeconomic environment on businesses (4) Explain the current economic environment in a clear and concise manner.
INDICATIVE CONTENT The module is divided into six units. Each unit equates to a week of study time. Unit 1: Demand and supply Unit 2: Production and Cost Theory Unit 3: Market structures Unit 4: Money, banking and interest rates Unit 5: International trade Unit 6: The national economy BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 2 of 13
If you have any questions or queries in relation to the module, please use one of the discussion boards to ask it. If there is not a relevant discussion board, or the discussion board is not appropriate, then please contact the module leader at [email protected], the lecturer responsible for the module.
ESSENTIAL READING Sloman, J., Wride, A. and Garratt, D. (2014). Economics, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772. Selected chapters from: Krugman, P. Obstfeld, M. and Melitz, M. Chapter 2, 11th Edition, International Economics, Pearson. Krugman, P and Wells, R., Chapter 4, 4th Edition, Microeconomics, Worth Publishers.
LIBRARY ACCESS As a distance learner with Aston University, you have access to Aston University’s licensed digital resources. To access the library’s collection, click here. You will be required to enter your user name and password to gain access to the library’s licensed resources.
TECHNICAL REQUIREMENTS Aston University licenses Blackboard Learn for its virtual learning environment. Click here for an upto-date listing of Blackboard’s supported browsers.
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 3 of 13
STUDY CALENDAR: ASYNCHRONOUS PROGRAMMES This study schedule is intended to provide you with a framework schedule. Each of one of us learns differently and you must set a pace for your own learning that is comfortable and manageable, when balanced against other commitments. At the same time, it is important that you do not leave your learning to the last moment. You will need time to digest the material on this module, discuss it with colleagues and your tutor. It is worth noting that the units on this module are interrelated – so it is important to follow the structure of the module. Please do not attempt to consider the units out of order, or in isolation. Week
Commencing
Unit
Content
1a
Demand and supply
1b
Supplementary reading relating to Introduction to economics and understanding graphs.
2
2
Production and cost theory
3
3
Market structures
4
4
Money, banking and interest rates
5
5
International trade
6
6
The national economy
1
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 4 of 13
ASSESSMENTS Component
% of Module Mark
Time constrained assessment
80%
Continuous Module Assessment Note: All tests contribute to module marks
20%
Submission Date(s):
Continuous module assessment 1 Unit 1: Demand and supply
12/05/19 by 23.59 pm UK time
Continuous module assessment 2 Unit 2: Production and cost theory
19/05/19 by 23.59 pm UK time
Continuous module assessment 3 Unit 3: Market structures
26/05/19 by 23.59 pm UK time
Continuous module assessment 4 Unit 4: Money, banking and interest rates
02/06/19 by 23.59 pm UK time
Continuous module assessment 5 Unit 5: International trade
09/06/19 by 23.59 pm UK time
Continuous module assessment 6 Unit 6: The national economy
16/06/19 by 23.59 pm UK time
GRADE SCALE Classification
Descriptor
Percentage Range
Distinction
Outstanding
75%+
Distinction
Excellent
70-74%
Merit
Very Good
60-69%
Pass
Good
55-59%
Pass
Satisfactory
50-54%
Fail
Marginal
Fail
Fail
Clear
Fail
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 5 of 13
UNIT BREAKDO WN Unit 1: Demand and supply Estimated time to study this unit: 16 hours (approx.) Unit objectives This unit of the module will: • provide an introduction to the module • use demand and supply curves to determine equilibrium prices and quantities in markets • explain how prices move markets to equilibrium in cases of shortages and surplus • evaluate the impact of changes in demand and supply on equilibrium price and quantity • understand and evaluate the effects of government intervention in markets through price controls. Essential reading
•
Sloman, J., Wride, A. and Garratt, D. (2014). Economics, Chapters 2 and 3, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772 o o
Chapter 2 in full Chapter 3: Section 3.1 only, pp. 61-74
N.B.: For elasticity calculations, you may disregard the Point Elasticity method (pgs.67-68). Extended reading • •
Supplementary reading material 1: Threshold concepts Supplementary reading material 2: Maths and graphs
Learning objectives By the end of this module you should be able to: • explain the assessment methods for Business Ethics, you should also be able to locate the assessment criteria and marking scheme for the research project • understand the learning outcome for the module and be able to locate the learning outcomes for individual units • navigate your way around the module BlackBoard site. Activities summary (Detailed breakdown available in BlackBoard) Task Description 01 Watch the unit video introduction 02 Complete the interactive lessons 03 Complete the essential reading for Unit 1 04 Complete case study 05 Complete the continuous assessment test 1 demand and supply 01
Complete the supplementary material for the Unit
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential Optional
Page 6 of 13
Unit 2: Production and cost theory Estimated time to study this unit: 8 hours (approx.) Unit objectives This unit examines the nature of firms and how they make production decisions. Specifically, we will look to answer some of the most important questions faced by businesses: • How many employees should a firm hire? • Should a firm use a labour-intensive, or a capital-intensive technology? • What is the optimal scale of operations for a given firm? • If a firm raises prices, will its revenue rise? Businesses usually answer these questions by choosing an option which maximises their profit. In line with that, this unit examines the relationship between a firm’s production decisions on one hand, and its profit on the other hand. The first two topics introduce the concept of productivity and explain how a firm’s output varies with the amount of inputs. The third topic uses productivity analysis to establish how a firm’s cost depends on output. The fourth topic extends these results to the “long run” – a period of time long enough for a firm to make significant investments in its production processes. The fifth topic evaluates how a firm’s revenue depends on its output in different competitive environments. The sixth topic combines revenue and cost analysis to propose profit-maximising rules for businesses. Note that many concepts in this unit are introduced by means of diagrams and graphs. You may wish to revisit Supplementary Material 2: Maths and Graphs in Unit 1 to refresh your knowledge of diagrammatic analysis. Essential reading Sloman, J., Wride, A. and Garratt, D. (2014). Economics, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772: Chapter 5 (in full) Learning outcomes By the end of this unit you should be able to: • outline the concepts of input, production function and productivity • analyse the relationship between a firm’s costs and its output • explain how competitive firms maximise profit • apply production and cost theory to various UK and international companies’ supply decisions. Activities summary (Detailed breakdown available in BlackBoard) Task Description 01 Watch the unit video introduction 02 Read chapter 5 (in full) from 'Economics' by Sloman, J., Wride, A. and Garratt, D., 9th Edition, Pearson, 2014 03 Complete the interactive lessons 04 Complete the case study 05 Complete the continuous assessment test 01
Complete supplementary material
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential Optional
Page 7 of 13
Unit 3: Market structures Estimated time to study this unit: 8 hours (approx.) Unit objectives This unit examines how the number of firms on the market, known as market structure, affects prices, output and business profits. Earlier in the module you learned how firms maximise profit, given their costs and the demand they face. However, we have not yet analysed what determines the demand. We will now consider this question and discover that the competitive environment of a firm is the most important determinant of its demand function, and hence of its ability to raise prices, known as market power. We will study four types of competitive environments: perfect competition, monopoly, monopolistic competition and oligopoly, and establish how firms make production and pricing decisions in all of these markets. Moreover, we will analyse how the barriers to entry affect long-run profit of a business. Finally, in this unit you will learn a new tool – game theory, which helps explain and predict how competitive interaction between firms unfolds. We will find game theoretic framework very useful when studying oligopoly, where a firm’s profit crucially depends on the rival firms’ strategic moves. Essential reading Sloman, J., Wride, A. and Garratt, D. (2014). Economics, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772: Chapters 6 and 7 (in full) Learning outcomes By the end of this unit you should be able to: • outline different types of market structure and explain why they are important for the business environment • explain how market structure affects the demand faced by a firm, its production decision and profit • apply game theory to an oligopolist’s production and pricing decisions • analyse market structure of the UK industries. Activities summary (Detailed breakdown available in BlackBoard) Task 01 02 03 04 05
Description Watch the unit video introduction Read chapters 6 and 7 (in full) from 'Economics' by Sloman, J., Wride, A. and Garratt, D., 9th Edition, Pearson, 2014 Complete the interactive lessons Complete the case study Complete the continuous assessment test
01
Complete supplementary material
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential Optional
Page 8 of 13
Unit 4: Money, banking and interest rates Estimated time to study this unit: 19 hours (approx.) Unit objectives A lot of the action in modern economies takes place within the financial system. The International Monetary Fund (2016) notes that, in the UK, the sum of financial assets owned by all financial institutions, excluding the central bank, was over 10 times the annual GDP of the UK - with roughly half attributable to banks. Other participants of the financial system include, pension funds, insurance companies and central banks. A broad understanding of how this financial system works and the roles played by its participants is crucial to understanding the modern economy. This unit, thus, begins with an introduction to the functions of money and the financial system. It then focuses on the need to ensure profitability, liquidity and capital adequacy within the financial system. The role of central banks is explored along with the credit creation process. Finally, we examine how interest rates are determined in money markets. Learning outcomes This unit of the module will seek to: • understand the meaning and functions of money • explain the motives for money demand and the relationship of the same with interest rates • explain the factors impacting money supply • evaluate the interaction between money supply and demand to determine equilibrium in the money market. Essential reading •
Sloman, J., Wride, A. and Garratt, D. (2014). Economics, Chapter 18, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772.
Extended reading •
Farag, M., Harland, D. and Nixon, D., (2013). Bank Capital and Liquidity, Bank of England
•
McLeay, M., Radia, A. and Ryland, T., (2014). Money in the Modern Economy: An
Quarterly Bulletin Q3. Introduction, Bank of England Quarterly Bulletin Q1. •
McLeay, M., Radia, A. and Thomas, R. (2014). Money creation in the modern economy, Bank of England, Quarterly Bulletin, Q1.
Additional Videos – see links on BlackBoard site for module. Activities Summary (Detailed breakdown available in BlackBoard) Task Description 01 Watch the unit video introduction 02 Complete the recommended reading 03 Complete the associated case study 04 Complete the continuous assessment test 01
Complete the supplementary material
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential Optional
Page 9 of 13
Unit 5: International trade Estimated time to study this unit: 19 hours (approx.) Unit objectives The following is a link to the Observatory of Economic Complexity which provides visualisations of trade data. Working through this introductory exercise, jot down brief answers to the following questions. Post your answers to the discussion forum. You may find it easier to consolidate your answers into a short, comprehensive answer covering all the questions. Be sure to comment on atleast two other posts from your colleagues. The following link will bring up trade data for the Germany, specifically, its export destinations in 2016. Hover over the country names for more information on the exports to that country. https://atlas.media.mit.edu/en/visualize/tree_map/sitc/export/deu/show/all/2016/ Q1. Note down the top 4 export destinations for Germany. What factors might determine why Germany trades with these countries? Can you think of any international agreements, for example that might impact Germany’s exports? Post your answers to the discussion forum and comment on atleast two of your colleagues’ posts. Q2. On the left of the screen, click on “import origins” under the country option. What are the top 4 import origins for Germany? Are there any similarities with its export destinations? Why might that be? Post your answers to the discussion forum and comment on atleast two of your colleagues’ posts. Q3. Again, on the left of the screen, click on “Exports.” Take note of the types of goods that Germany exports. Do the same for its imports by clicking on “Imports” on the left of the screen. Are the import and export goods very different? Are they similar? Can you think of reasons why? Post your answers to the discussion forum and comment on atleast two of your colleagues’ posts. This exercise is intended to help you think about trade determinants, which we’ll examine in more detail in this unit. We’ll also consider the benefits and challenges of free trade and the policies that governments use to influence trade. Finally, we’ll get acquainted with Gravity Model of International Trade, which is widely used to examine bilateral trade patterns. You can, if you wish, also examine trade patterns for other countries (provided data is available) by changing the selected country on the left of the screen under the “Country” option. You can also change the year of analysis…A word of warning though – without realising it, your tutor managed to while away entire, albeit blissful, afternoon checking out the data! Learning objectives This unit of the module will focus on: • understanding how comparative advantage leads to mutually beneficial international trade • evaluating the sources of comparative advantage • understanding and evaluating the implications of various trade policy instruments • understanding and using the gravity model to evaluate trade patterns. Essential Reading
•
Sloman, J., Wride, A. and Garratt, D. (2014). Economics, Chapters 24, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772.
•
Krugman, P., Obstfeld, M. and Melitz, M. Chapter 2, 11th Edition, International Economics, Pearson.
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 10 of 13
Activities Summary (Detailed breakdown available in BlackBoard) Task Description 01 Watch the unit video introduction 02 Read through the module introduction. Complete the activity and post to discussion forum as instructed. Also comment on at least two posts from your colleagues. 03 Complete the interactive lessons 04 Complete the continuous assessment test.
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential
Page 11 of 13
UNIT 6: The national economy Estimated time to study this unit: 10 hours (approx.) Unit objectives This unit takes a broader view than the rest of the module and studies the economy as a whole. Topic one gives an overview of the major macroeconomic issues – economic growth, unemployment, inflation and the balance of payments. Topic two then links these issues using a simple model of the national economy, known as the circular flow of income model. The following two topics consider separate macroeconomic issues in depth, focusing on economic growth, unemployment and inflation respectively. Finally, we will study how the government can stabilize the economy and tackle macroeconomic problems through different policy instruments. Topic five considers fiscal policy, which affects the economy via government spending and taxation. Topic six then examines monetary policy instruments which control the money supply. Learning outcomes By the end of this Unit you should be able to: • outline the concepts of the circular flow of income and the business cycle • explain how economic growth, inflation and unemployment relate to business activity • describe the tools of government macroeconomic policy and their effect on businesses • analyse current issues in the UK economy and critically evaluate the UK government’s macroeconomic policy. Essential reading
•
Sloman, J., Wride, A. and Garratt, D. (2014). Economics, 9th Edition, Pearson, ISBN-10: 1292064773, ISBN-13: 978-1292064772:
•
Chapter 14 (Sections 14.1-14.2 and 14.4-14.5), Chapter 15 (Sections 15.2 and 15.4) and Chapter 21 (Sections 21.1-21.2)
Activities summary (Detailed breakdown available in BlackBoard) Task Description Watch the unit video introduction 01 02 Read chapters 14 (sections 14.1, 14.2, 14.4 and 14.5), 15 (sections 15.2 and 15.4) and 21 (sections 21.2 and 21.4) from Sloan et al, 9th Ed. 03 Complete the interactive lessons 04 Complete the case study 05 Complete the continuous assessment test
01
Complete supplementary material
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Essential Optional
Page 12 of 13
REFERENCING Aston University have adopted the Harvard Referencing System as the standard format for citations and references.
GUIDELINES ON GETTING HELP Module Discussion Forums There are a variety of discussion forums within your module that you should use and visit regularly: •
• •
If you have a general question about the module, please use the Ask a Peer/ Ask your Module Leader forum. Chances are you are not the only one with that question, and using this forum will allow others to benefit from the responses. If you know the answer to a classmate’s question, please answer it. If not, your module leader will respond to posts that are unanswered within 24. Each unit has a General Discussion Forum for you to ask content-related questions, share ideas and resources, and discuss the week’s topic. There is a General Forum for off-topic discussions.
NOTE: Please subscribe to these forums so that you can receive an email notification of the questions and answers being discussed.
Module Leader You should contact your module leader for a one-on-one meeting for situations that you deem as personal or confidential in nature and are not appropriate for the online forums. Please follow the instructions outlined on Page 1 or within Blackboard’s Module Overview page.
BSK497: The Global Economic Environment: Module Guide Summer A Term, May 2019
Page 13 of 13