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:
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 (International Economics): a 1500 word individual assignment (50%) – International Economics Part 2 (Financial Decision Making): a 2 hour exam (50%)
