Eco­nom­ics of Glob­al Busi­ness

Course content

Course content:

The beginning of the 21st century marks a period of growth and challenge to developing and developed economies. In this course, we will learn the basic tools to understand how to analyze economic phenomena.
The main goal of the course is to present the main topics in macroeconomics and international economics. The focus will be on applications and policy implications instead of formal demonstrations. Ideally, students will leave the course with a critical perspective on economic models and be able to apply their knowledge to many different situations. Critical thinking will be important, but students should also know the basic formal mechanisms of macroeconomic and international trade models.
The course is divided in two main modules.
Module 1. Modern Macroeconomics
We analyze the determinants of economic well-being in the short and long run. We start with key macroeconomic terms (for example, defining and measuring economic growth, inflation, and unemployment). We examine how the economy grows in the short and long run, the role of productivity, and the impact of the business cycle. We also explore the role of monetary and fiscal policies.
Students should be able to answer/understand the following questions/concepts:
-What do terms like GDP, CPI, or durable goods measures quoted in the newspapers
measure?
-What are the long-term sources of economic growth and why is productivity so important
to economists?
-- Why is it difficult for poor countries to catch up with developed economies?
-What causes a recession or recovery?
-Who counts in unemployment figures?
-What monetary and fiscal policies do countries have to manage the business cycle?
-What is inflation and why does it matter?
Module 3. Policy in the Open Economy
The course's final module analyzes the financial linkages between different countries, especially regarding the Balance of Payments and its effects on national economies. It also surveys the role of money and finance in the world today.
We examine the role of government policies toward the foreign exchange market, including the choice between fixed and floating exchange rates, strategies to keep currencies under or overvalued, and the use of exchange controls to create impediments to currency flows. Finally, we will incorporate climate change and income inequality in regular macroeconomic models. Students will also examine the development problems and the role firms can play in fostering growth.
Students should be able to answer/understand the following questions/concepts:
-How do individuals, firms, and states buy and sell currencies?
-What determines the value of currencies in the short and long runs? What does it mean for Denmark to be part of the ERM2?
-What choices do states have in setting their currencies? What tools do they employ?
-What different strategies for economic development have states pursued?
-What is globalization? How do current trends alter business today and your future career?
-How can we relate climate change to fiscal, monetary and currency policies.
-How do economic policies change income inequality and how societies should design better welfare systems?