International Economics
2 cu
(April 2005)
Welcome to the International Economics module!
I plan to run this module in a slightly different way! Firstly, I want to avoid a wholly
theoretical module. Secondly, I want us to adopt an action-learning approach. I will
give you some lectures but I will also ask you to participate quite a lot. With this in
mind I am going to put you into teams (each representing a sales – marketing division
within a software manufacturing company). As the marketing division located within
the company headquarters in the UK you will have to plan your marketing decisions
for selling your product (being assembled under license) in the US over a number of
periods. You will then have to make decisions as to: (1) When to repatriate your
earnings back to the Finland and, (2) In later periods whether to source components
from outside the Finland. This will help contextualise the theory around exchange
rates. However, we (you) will also have to think about most of the other topics in
International Economics in terms of how they relate to your sales division.
These ‘other’ areas (in broad terms) are:















Patterns and Trends in International Business
Internationalisation Processes
Exchange Rates
International Trade – Theory and Practice
International Institutions and Markets
The International – Political and Legal, Socio-Cultural, Ethical and
Ecological, Economic and Technological Environments.
Transition Economies
Economics of Developing Countries.
Introduction to the International Business Context. Review of some of the
theories of international trade.
Free Trade Agreements, WTO, Growth of the Multinational Enterprise; Free
Trade debate.
The debate; global convergence, international diversity and international
integration and similarity.
Competitive Advantage of Nations & Trans-national Management.
International Monetary Markets, history, contemporary exchange rate systems
International Entry Strategies, location , terms of sale
Globalisation and localisation, channel decisions
So, for example, when we look at internationalisation processes we want to think of
the material in terms of the alternatives available to the sales division (the firm).
Teaching Schedule
We have about four hours per day over the two week period.
In the first session I will look at the patterns and trends in International
Business/Economy. I will also give you the background facts to the industry your
sales division operates in and what is required. We will make one decision by the end
of the day. The results of your decisions (come from a computer-based simulation)
and you will be provided with these on the following morning. After the first teaching
block (day one) you will have only one session per day to plan and make your
decision. The rest of the time will be used either in lecture, tutorial or for you to
research and prepare for class.
Assessment
There will be two pieces of assessment – each contributing 50% of the total marks
available.
The first assessed piece is a group report and presentation. The presentations will take
place on the Thursday of the second week and last about 20 minutes.
The report and presentation is required to address: The economic, moral and ethical
arguments behind the objections to globalisation.
Successful works will integrate theory and evidence and take a considered view on
both sides of the argument. The report is required to be typed and is expected to be at
least 3000 words in length. It is also required to conform to normal academic
conventions regarding the acknowledgement of ideas/material. Finally, it is to be
written in your (the group’s) own words. For the presentation the group required to
have powerpoint prepared OHP slides.
The second assessed element is a time-constrained test. This test will require you to
answer three questions from a choice in two hours. The test date will be confirmed in
the first week.
Key Reading
You can reference pretty much the same material from most of the text books labelled
‘International Economics’ or from some basic economic texts such as Economics by
Begg, Fischer and Dornbusch or Applied Economics edited by Griffiths and Wall.
Other useful books are those labelled ‘International Business’.
Rulzion Rattray
April 2005