Business organisations do not exist in a vacuum. Their decisions and actions take place in a dynamic and often turbulent environment, within which many different external factors impact upon their performance. This module focuses upon key economic issues in 3 sub environments; Financial, Macroeconomic and International, which can present both opportunities and threats to an organisation.
The module has been designed for individuals with no prior knowledge of economics and seeks to explain the workings of the domestic and international economic systems and examine key aspects of the economic environment which affect the business climate, including the business cycle, inflation, exchange rates and international trade and investment.
Objectives: On completion, the participant will be:
- Recognise key economic issues arising in the domestic and international environment and their potential impact on a business.
- Appreciate the role and impact of significant economic sectors (eg Government sector) and / or institutions (e.g. European Union) within each of the 3 sub environments.
- Define major economic variables within the 3 sub environments and describe the factors which influence them.
- Use basic economic tools of analysis, including demand and supply curves and economic models of the economy.
- Basic Tools; Market Mechanism, Demand and Supply Curves, Economic Data, Economic Modelling.
- Economic Activity, Growth and the Business Cycle.
- Public Sector and Fiscal Policy.
- Financial Institutions (e.g. Bank of England, Stock Exchange).
- Inflation, Money, Interest Rates and Monetary Policy.
- Balance of Payments, Exchange Rates.
- International Trade and Institutions (e.g. WTO, EU).
- Foreign Direct Investment and Multi National Enterprises.