ECONOMICS FOR MANAGEMENT

ECONOMICS FOR MANAGEMENT
GRADUATE SCHOOL OF BUSINESS
POSTGRADUATE SUBJECT GUIDE – AUTUMN SEMESTER 2009
UTS: BUSINESS SCHOOL OF FINANCE AND ECONOMICS
SUBJECT: 25706
ECONOMICS FOR MANAGEMENT
SUBJECT COORDINATOR: LEN PERRY
SUBJECT PRECIS
Economics has traditionally been divided into 3 primary areas. These are macroeconomics, microeconomics and international economics. Macroeconomics, as the name implies, is concerned with the larger scale aspects of an economy. It is concerned with such topics as the determinants of GDP (Gross Domestic Product), the general price level, the unemployment rate and the general interest rate. All of these factors have a sizeable impact on businesses. Indeed, major change in the macroeconomic environment has frequently been the most important factor affecting business profitability. Clearly, an understanding of what drives the macroeconomy is central to any attempt to more effectively manage a business. Microeconomics is concerned with the component parts of the economy. It seeks to explain the principles of price determination for individual products, focussing on those factors that influence supply and demand. Microeconomics also analyses market structure. This refers to the number and size of firms in a particular industry. Finally the course introduces international economics. International economics actually draws on techniques and concepts developed in macro- and microeconomics. However so important is international trade and finance, that it has taken on an identity of its own. International economics deals with such issues as the difference between moneys generated from exports and imports of goods and services (plus other transfers), which is referred to as the Current Account Balance, the principle of comparative advantage (i.e. why countries trade) and exchange rate determination (the price of one currency in terms of another).
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UTS: BUSINESS MISSION STATEMENT
“Forward thinking, work-ready”
IMPORTANT NOTICE
Read this document carefully and in its entirety. It contains important information that can affect your standing in this course. It is your responsibility to be aware of, and act on, course requirements as herein outlined.
Welcome to Economics for Management.. This subject will introduce you to a range of key economic concepts that are of importance in understanding the business environment.
A knowledge of this subject matter is a valuable asset for informed and, in the longer-run, successful business decision-making. Please make sure you are thoroughly familiar with the requirements of this course. Read the documentation carefully and if anything is unclear seek clarification from your lecturer or the subject co-ordinator. So that there is no misunderstanding this advice is boxed and highlighted above.