Programme And Module Handbook
 
Course Details in 2022/23 Session


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Module Title LI International Economics and Financial Decision Making
SchoolBirmingham Business School
Department Management
Module Code 07 33815
Module Lead Christian Darko / Jane Binner
Level Intermediate Level
Credits 20
Semester Semester 1
Pre-requisites LC Introduction to Economics and Finance - (07 33799)
Co-requisites
Restrictions None
Contact Hours Lecture-40 hours
Seminar-8 hours
Guided independent study-152 hours
Total: 200 hours
Exclusions
Description The first part of the module provides students with an introduction to core macro-economic theory and principles in a business context. The main purpose is to equip students with knowledge of main macro-economic concepts, theories and principles and basic tools and methods of economic analysis. The module is designed to provide a perspective, at an introductory level, of macroeconomics and to equip students with the ability to understand and analyse current and topical economics issues with relevance for business. Topics typically covered may include: the main macroeconomic variables (GDP, inflation, and unemployment) and their measurement, basic macroeconomic theory including models of short-run and long-run aggregate demand and supply, and economic growth. The module will also offer an overview of theories of unemployment and inflation; fiscal policy; monetary policy; and globalisation and international trade. The module also provides discussions on problems and policies in the international economy.

The second part of the module examines investment projects using discounting methods under the conditions of certainty and risk using both traditional and portfolio methods. Demonstrates how to calculate and use cost of capital for geared companies, and how to evaluate leasing projects.
Learning Outcomes By the end of the module students should be able to:
  • Demonstrate knowledge and understanding of modern macroeconomics, including national equilibrium and the impacts of macroeconomic policies and shocks;
  • Apply economic concepts, principles and models to real world cases and situations, and understand their relevance for business;
  • Demonstrate a critical understanding of the links between business and the macroeconomic environment;
  • Evaluate investment decisions using discounted cash flow methods under the assumption of certainty;
  • Apply traditional and portfolio approaches to incorporate risk in investment decisions;Calculate and make use of the appropriate costs of capital for all equity-financed and geared companies.
Assessment 33815-01 : MCQ Online Test : Class Test (25%)
33815-02 : MCQ Online Test 2 : Class Test (25%)
33815-03 : Exam : Exam (Centrally Timetabled) - Written Unseen (50%)
Assessment Methods & Exceptions Assessment: MCQ online (25% 50min), MCQ online (25% 50min) and 2 hr written exam (50%)
Reassessment: 2 hr written exam
Other
Reading List