...F.Y.B.A. Paper – I Economic Theory (Micro Economics-I) SECTION – I Module 1 : Introduction Meaning, nature, scope, significance and limitations of micro economics. Ceteris Paribus – use and significance. Concept and types of equilibrium : stable, unstable, static and dynamic equilibrium – partial equilibrium and general equilibrium, positive economics and normative economics, managerial economics. Basic concepts – wealth, welfare and scarcity. Basic tools of economics analysis (equations and functions, graphs and diagrams, slope and intercepts) Module 2 : Consumers Behaviour and Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves–...
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...Business? 2) What is MNC? 3) What are the components of Input market? 4) Name the various sources at the micro level of a company? 5) As for as India is concerned what is the Macro view of foreign flow? 6) What you mean by output market? G02 1) What you mean by sectoral Interdependence? 2) What is Foreign exchange risk and Political risk? 3) How licensing and franchising are different? 4) What motivates International Business? Section B G03. 1) Bring out the various factors of differences leading to interdependence. 2) At the micro level of a company what are the sources of Finances? 3) What are the significance of input market and output market? 4) What is the relevance of international finance to a corporate executive? G04 1. What are the distinguishing features of International finance? 2. What are the key decision areas in International Financial Management? 3. What is market imperfection in international finance? 4. What are the various risks involved in international finance? 5. What is the scope of international finance? Section C G05 1) “The emergence of International trade is attributed to sectoral interdependence and National interdependence” Explain this statement. 2) Explain the distinguishing features of International Finance. 3) How international...
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...Nature and scope of economic science, its relationship with other social sciences; quantification of economic variables, theories of consumer behavior and of the firm: linear economic models; market structures; social accounting and basic elements of economic planning. Learning Outcomes: At the end of the course and having completed the essential reading and exercises, the students will be able to – Analyse and interpret the relationship between factors influencing demand and supply Explain and analyse the nature of production and its relationship to costs. Analyse business practices with respect to pricing and competition. Understanding the various strategic options in banking sector in the context of consumer behaviour and markets analysis. Understand and describe the concepts and measurement of gross domestic product, unemployment, and inflation. Understand and describe the difference between business cycles and economic growth and the factors that contribute to each. Page 1 of 6 Understand and describe the concept of Macroeconomic Equilibrium. Understand and describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and long-run. Understand and describe the multiplier concept, how it is computed, and its qualifications and limitations. Analyze and describe the concepts, tools, and implementation of fiscal policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity. Understanding...
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...Individuals in a Diverse Society February 20, 2013 Theories of the Family Structural Functionalism -Functionalist believe that everything and everybody in society has a role (a function) that makes society to run smoothly -It is a macro theory It focuses on institutions and structures existing in the society as whole Key Terms Function: The different parts of each society contributes positively to the operation or functioning of the system as a whole Institutions: Society is a system of social structures/institutions (economic, legal, education) -Each social systems has needs which are met by the structures and they are interconnected -Individuals and groups are constrained by these structures Interdependence: The roles taken on people, and the institutions and organizations of society are all interdependent and work together to ensure the smooth operation of society as a whole -A change in any one part affects others, requiring other parts to take account of changes, modify its actions, and adapt to any changes necessary Norms and Values: Individual behaviour is governed by social norms (most consistent behaviour in society) or rules that are generally accepted and agreed upon -These norms and values are consistent with the equilibrium state of society, or normal state of affairs -There are aspects of these norms that return the society to a normal state of affairs in the case of a disturbance- for example, sanctions, punishment, social approval and social disapproval ...
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... Journal of Knowledge Management, Economics and Information Technology The Influence of Micro and Macro Environment Components on Trade Companies in Romania Authors: Elena Pîndiche, The Christian University Dimitrie Cantemir of Bucharest, Romania; Roxana Ionita, Lecturer, The Christian University Dimitrie Cantemir of Bucharest, Romania This paper deals with the impact of micro and macro environment components on trade companies in Romania. Trade companies organize and operate under specific environmental conditions impact or both. In the activity of any companies the environment plays a key role in defining its strategies in seizing and using opportunities of development, being practically the support in achieving the objectives of growth, profitability or just survival. Trade companies should have the best possible perception of the components on each macro, because some of them are heavily dependent than others. Dealing with environmental factors allow detection trading company strengths and weaknesses, and to measure responsiveness and anticipation. Keywords: micro environment; macro environment; company Introduction Trading company designs and operates under specific environmental conditions impact or both. The external environment of the firm identifies two major components: the microenvironment - the firm has direct links, reciprocal often imposed by the need to achieve its object and macro environment - the firm has indirect...
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...MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A CHAPTER 1: ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL CHAPTER SYNOPSIS This chapter explains the elements of International Business Management. It gives a sound understanding of factors such as Political and Economic Environment, Legal Environment, and Technological Environment. Also, it covers the effects of Regional Trading Blocks, Information Technology, The Globalization of Human Capital, The Global Manager’s Role CHAPTER OUTLINE The Global Business Environment Regional Trading Blocks Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment ISSUES FOR REVIEW AND DISCUSSION I. The Global Business Environment A. Global management Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. 1. Globalism “Global competition characterized by networks that bind countries, institutions and people in an interdependent global economy.” 2. Evidence/Indicators of Globalism The growth rate of the trade of goods has grown faster than the world production of goods. The European Union has now caught up with the United States to share the position of the world’s largest investor. 2011 AMERICAN CITY UNIVERSITY Page 1 of 28 MBA505 INTERNATIONAL BUSINESS MANAGEMENT ...
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...com 9874630182 Abstract: We construct an effective demand model involving interaction between the real sector and the financial sector. The commodity market is imperfect. We explain price stickiness in terms of Kaleckian Mark-up pricing. The financial assets are money, government bonds and a risky asset, say equity or stock. The model is an extension of Krugman’s model of international financial multiplier and the model can explain not only the fall in asset prices but also its recessionary consequences. The paper also contains policy recommendations to overcome the financial meltdown. JEL Classification: E60, E61. Keywords: Mark-up pricing, financial meltdown, effective demand. Section 1: Introduction The global financial system is currently in meltdown. Stock markets have been falling most days, money markets and credit markets have shut down as their interest-rate spreads skyrocket, and it is still too early to tell whether the raft of measures adopted by the US and Europe will stem the bleeding on a sustained basis. A generalized run on the banking system has been a source of fear for the first time in seven decades, while the shadow banking system - broker-dealers, non-bank mortgage lenders, structured investment vehicles and conduits, hedge funds, money market funds, and private equity firms - are at risk of a run on their short-term liabilities. On the real economic side, all the advanced economies - representing 55 per cent of global GDP - entered a recession...
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...MACRO AND MICRO ENVIRONMENT ANALYSIS FOR NINTENDO Macro Environment Macro environment is said to be the most general layer of the environment. This consists of broad environmental factors that have an impact on the organisation. The PESTEL framework helps us to identify the future trends which might impinge on Nintendo and therefore identify the key drivers of change. On the other hand the five forces framework helps to understand how the competitive dynamics within and around the video game industry are changing. The two frameworks are discussed below: PESTEL Framework: This categorises environmental influences into six main types, namely: political, economic, social, technological, environmental and legal. A PESTEL analysis on the video game industry is carried out below: Political: Factors such as taxation policies, foreign trade regulations and social welfare policies influence the video game industry. Video games have a tendency to play with the emotions of people which inturn can threaten peace and law, a country being multicultural. Therefore Government has the authority to control the contents of the video game frames. Economic: Places such as U.S and Japan are largely dominated by the video game business. Therefore contributing towards the GDP of their countries. Interest rates have not much impact on the video game business as they manufacture their own units. The disposable income of the consumers in the video game industry has an effect on their...
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...Business Strategy Module Lecturer Kashif Ali Prepared by M. Sohail Malik Index Introduction ................................................................... 1 Business Environment Analysis ................................. 2 A) Tesco Micro Environment (PESTEL Analysis) ..... 3 B) Tesco Macro Environment (Five forces Analysis) . 6 3. Impact of Globalisation ............................................ 8 A) Opportunities ...................................................... 9 B) Benefits ................................................................ 9 C) Challenges ............................................................. 10 4. Conclusion ................................................................. 11 Introduction: The world has developed ever more intricate, resulting from the greater interdependence among world economies (Thompson, 2002) and the success of organisations is largely determined on how well the organisation adjusts all its tangible and intangible properties to keep itself on track of its surrounding or business environment (Armenakes & Bedeian, 1999). As a market analyst, the organisation undertaken to analyse business environment is Tesco Plc. Tesco Plc is a British global grocery and all-purpose merchandise retailer founded in 1919 by Jack Cohen. It is the 3rd largest retailer in the world and operates in more than 14 countries across Asia, Europe and North...
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...Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies. -PESTEL- An analytical tool to develop and understanding of exogenous risk -Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition. -> Exogenous creates Endogenous RISK SWOT Analysis- an analytical tool that helps you develop an understanding of how exogenous risks influences endogenous risks for the firm The Global Business environment Globalisation- Global competition characterized by networks of international linkages between countries, institutions, and people in an independent global economy. Five key global trends: 1. Changing...
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...The Nature and Scope of Macroeconomics by Smriti Chand Macro Economics The Nature and Scope of Macroeconomics! Introduction: The term ‘macro’ was first used in economics by Ragner Frisch in 1933. But as a methodological approach to economic problems, it originated with the Mercantilists in the 16th and 17th centuries. They were concerned with the economic system as a whole. In the 18th century, the Physiocrats adopted it in their Table Economies to show the ‘circulation of wealth’ (i.e., the net product) among the three classes represented by farmers, landowners and the sterile class. Malthus, Sismondi and Marx in the 19th century dealt with macroeconomic problems. Walras, Wicksell and Fisher were the modern contributors to the development of macroeconomic analysis before Keynes. Certain economists, like Cassel, Marshall, Pigou, Robertson, Hayek and Hawtrey, developed a theory of money and general prices in the decade following the First World War. But credit goes to Keynes who finally developed a general theory of income, output and employment in the wake of the Great Depression. Contents: Nature of Macroeconomics Difference between Microeconomics and Macroeconomics Dependence of Microeconomic Theory on Macroeconomics Dependence of Macroeconomics on Microeconomic Theory Macro Statics, Macro Dynamics and Comparative Statics Transition from Microeconomics to Macroeconomics Stock and Flow Concepts 1. Nature of Macroeconomics:________________________________________ ...
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...Toward a Conceptual Model of Global Leadership Jose Mathews* In the globalized world, global organizations have to contend with global leaders, and no easy parallel can be found between domestic and global leaderships. Researchers have approached the construct of global leadership from different perspectives of cognitive complexity, competency, behavioral, human capital, personality process and global mindset. In relation to these perspectives and the contextual elements of global business environment, a model of global leadership is derived. The key content variables of global leadership are explained in the realms of cognitive complexity, emotional resilience, cultural intelligence, motivational processes and related facets which interact with the global business environment. Introduction In organizational behavior, leadership appears to be the most researched, debated and discussed topic, and researchers have analyzed what leaders are like, what they do, how they are effective, what are the conditions/situations that make them effective, how do they bring about changes among the followers, the styles of their interactions with the followers and how they go about achieving their individual, group and organizational goals (George, 2000). The traditional focus of leadership is the organization that operates within a limited boundary. However, the changed context of globalization and the emergence of multinational and transnational corporations necessitate...
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...External analysis can be divided into 2 linked processes: – Micro‐environmental analysis • competitive or near environment ‐ industry, market & strategic group – Macro‐environmental analysis • broad business or far environment STEP analysis • External analysis identifies opportunities and threats through continuous learning about the global and local business environments Industries and markets • An industry consists of a group of businesses producing / supplying similar products (goods or services) using similar: – – – – resources, skills, competences, technology processes and value adding activities materials supplier channels and distribution channels Markets • A market is defined in terms of shared: – – – – – products or services customers customer needs distribution channels Competitors Why the distinction between industry and market? • Businesses develop core competences within an industry which are then deployed in markets to satisfy customer demands – An industry can serve more than one market – A market can be served by more than one industry Analysis of the competitive environment • This involves assessing: – the extent of globalisation in the industry and market ‐ Yip’s globalisation driver framework – the nature and extent of competition ‐ Porter’s five forces or the resource‐based framework – strategic groups The network of business environments national macro business environment national industry ...
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...types of business organizations and their purposes. 3 P1.2. Describe the extent to which an organization meets the objectives of different Stakeholders. 4 P1.3. Explain the responsibilities of an organization and strategies employed to meet them. 4 P2.1. Explain how economic systems attempt to allocate resources effectively. 5 P2.2. Assess the impact of fiscal and monetary policy on business organizations and their activities. 6 P2.3. Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization. 8 Conclusion 9 References 10 Introduction In this assignment I will describe the types, content and objectives of business organizations and the surrounding business environment which is the sum of all external forces, actions and conditions that affect it and the opportunities to meet its contractual obligations, improve relationships with customers, as well as the opportunities for future development. The external factors are the elements of the ambient environment. I will define the components of the business environment which is composition of micro and macro environment. I will try to provide suggestions for better competition policy in the UK business environment. P1.1. Different types of business organizations and their purposes. There are three sectors in the UK traditional industry...
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...Global citizenship encompasses social, cultural, political and economic change. Being a global citizen means taking a more socially conscious view of the world by focussing on events beyond our borders. For instance how consumerism in our country may be satiated by slave labour in another country or why universal human rights should not be the privilege of citizens in first world democracies, but that of everyone around the globe. None of this is more apparent in the case of the Nigerian political activist Ken Saro-Wiwa, who fought against the exploitation of the Ogoni people by the Nigerian government. The authorities were selling away tribal land rights to oil companies like the Dutch owned Shell, which in turn was trying to keep up with America’s oil demands. Saro-Wiwa was later executed by the Nigerian...
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