Course Details in 2023/24 Session

Module Title	LI International Economics and Financial Decision Making
School	Birmingham Business School
Department	Management
Module Code	07 33815
Module Lead	Tong Yin/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 Class Test 1 : Class Test (25%) 33815-02 : MCQ Class Test 2 : Class Test (25%) 33815-03 : Exam : Exam (Centrally Timetabled) - Written Unseen (50%)
Assessment Methods & Exceptions	Assessment: Part 1: 50 mins MCQ test (25%); one-hour written exam(25%) Part 2: one-hour MCQ test (25%); one-hour written exam (25%) Reassessment: By failed component
Other
Reading List