Economic Applications for Business

Semester and Year Offered: 5th Semester (Monsoon Semester 2019)

Course Coordinator and Team: Akha Kaihrii Mao, Dr Nidhi Kaicker, Mr Nitin Sharma, Dr Kritika Mathur and Dr Kanika Mahajan

Email of course coordinator: akha@aud.ac.in

Pre-requisites: Semester 4

Course objectives/ Description: This course on Economic Applications for Business seeks to develop an understanding of economic concepts and their impact on the business management. There is continuous dynamic relationship between economics and business performance. According the Industry Experts who were consulted while designing this course along with AUD Faculty Members, it is important for the participants to be aware of the impact of economic concepts on business.

Course Outcomes: This course will enable students to:

1. identify the contribution of a particular sector to the National GDP, analyse factors contributing towards the change in purchasing power
2. appreciate various factors leading to change in Time Value of Money and incorporate these factors in their decision-making process
3. appreciate different economic activities undertaken by individuals to increase their wealth and mitigate associated risks.
4. appreciate types of financial risks associated with monetary decisions that an individual or a firm takes
5. know the role of government in influencing our decision-making process and appreciate and evaluate the pros and cons associated with the policies implemented by the Government.
6. relate it with the impact of such policies on the three cohorts i.e. Tourism and Hospitality, Retail and Education and Childcare.
7. identify various opportunities and challenges that different forms of business face in a global economy and take decisions in coherence with the global environment and competition.

Brief description of modules/ Main modules:

1. National Income and output: in this module,there will be different concepts related to National Income and Output such as Measuring Total Output, GDP accounting complications, Real GDP versus Nominal GDP, GNI and The concept of growth.

2. Inflation: this module will deal with concepts of inflation, factors contributing to inflation and its impact on purchasing power, decision making of an individual consumer and an industry

3. Money, Banking and Financial System: this module will look at the financial system of the country and the different types of saving and investment avenues and the associated risks through assignments and activities organised in class.

4. Fiscal Policy and Budget: In this module, we will try to understand different types and tools of Fiscal Policy.

5. International Trade: In this module, we will read about strategies followed by domestic and international companies in different economic landscapes.

Assessment Details with weights:

1. Assessment 1 – 30%
2. Assignment 1 - 20%
3. End-Semester Exam - 30%
4. Attendance & Class Participation - 20%

Reading List:

1. Paul A. Samuelson and William D. Nordhaus, Macroeconomics, 19th Edition, Mc Graw Hill
2. Richard T. Froyen, Macroeconomics, 2013, Pearson
3. Richard A. Musgrave and Peggy B. Musgrave, Public Finance in Theory and Practice, 2017
4. Paul R. Krugman, Maurice Obstfeld and Marc Melitz, International Economics: Theory and Practice, 2014, Pearson