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 business decisions in the global economic environment which can present both opportunities and threats to an organisation. It includes an assessment of the current developed country banking crisis and how far it may put globalisation into reverse.
This module will help participants to explore and understand globalization, how it impacts on business and how businesses can formulate and then act in response. It will introduce concepts, models and frameworks that can be applied to increase the probability of success for their own organisations and will equip them to develop their own plans within the overall business context.
This 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.
On completion of this module, successful participants will be able to:
- Critically assess how far markets for goods and services are global and why some are not.
- Understand and critically evaluate how the commercial decisions of a business in one country are influenced by the actions of businesses in another country.
- Critically discuss how governments and international institutions promote or impede globalisation.
- Critical appraise how globalisation impacts on a firms decision as to what price it should set for its products and how it impacts on sourcing decisions for raw materials and components.
- Understand and be able to explain the basis of how increased competition affects firm decisions on what to make themselves or buy in from external suppliers
- Critically Assess the basis of a firms choice as to whether they should try and beat the competition or avoid them.
- The Rise of Globalisation and economic interdependence of nations including discussion on definition and key indicators.
- Explanations of Globalisation including, Falling tariffs in goods, Falling non tariff barriers, Liberalisation of services, Capital market liberalisation, Falling communication costs, Domestic micro and macro reform.
- Role of Global Governance and International Institutions, including Rationale and role of World Trade Organisation.
- Consequences for business and consumer theory and evidence.
- The formulation of a Firm’s responses to Globalisation, including pricing policy, costs, production decision: make or buy, location of investment, adapt or die; including market selection
- How firms respond to fluctuating Exchange Rates, including exchange rate volatility, causes, cost reduction of exchange rate risk, fix or float, exchange rate and balance of trade