Describe the relevance of economic principles to resource allocation and the decision-making process within the global business context;

• School of Business & Enterprise
• Module Title: The Economic Environment
• Course Code: ECON07006

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• Title of Module: The Economic Environment
• Code: ECON07006
• SCQF Level: 7 (Scottish Credit and Qualifications Framework)
• Credit Points: 20
• ECTS: 10 (European Credit Transfer Scheme)
• School: Business and creative industries

The graduate of the 21st. Century faces an increasingly complex, challenging and competitive world of work and has to be equipped with the business tools and analytical skills necessary to add value for future employers. Increasingly, the need to add value has an international dimension as the forces of globalisation continue to be felt at every level of society. Even sectors once thought immune to competition (e.g. the public sector) now find their performance judged against global economic benchmarks as the competitive environment extends beyond national boundaries. The module seeks to help the student become globally aware and better able to appraise complex business issues across industry sectors.

This module introduces the student to the fundamental issues facing all business environments and to the guiding principles on which business decision making is made. By using a blend of theory and case study and supported with online resources, the student is provided with a stimulating environment within which to study the issues facing real businesses in the real world. The student has the opportunity to engage in a meaningful way with the learning process through applying key principles to specific industry areas such as those of the titled degree.

A thematic approach is adopted following four key themes of study 1 Business and economics 2 Business and markets 3 The relationship between government and business 4 Business in the international environment. The four themes are used to enable the student to make progressive steps from understanding key principles; to seeing how those principles form the basis for business tools that aid decision making; to understanding the complex relationship between government and business, and why business and competition is essential to our standard of living. By setting the themes within a global context the module highlights the limitations of governments to protect individual companies and sectors from the effects of international competition.

Case study and group work are essential modes of learning and the student is expected to actively participate and to make a contribution. This contribution can take many forms and may include relating person experience of work or explaining how different cultural backgrounds may create alternative decision making regimes. The essence of the module is that learning is a two way process and that active participation is essential to the success of the module and to the achievement of the individual.

At the end of the module the successful student will have knowledge and understanding of some of the key theoretic principles that guide business and which underpin and support all degrees within the Business School.

Learning Outcomes: At the end of this module the student will be able to:

• Describe the relevance of economic principles to resource allocation and the decision-making process within the global business context;

• Apply basic economic principles and techniques of the international market system and the competitive process

• Demonstrate an awareness of the issues surrounding corporate governance at firm, government and supra-national level.

• Describe the main features of the international economic environment and the basic causes and consequences of globalisation on UK firms

Indicative Scheme of Work

The following scheme of work is based on a notional 34 hours of contact between tutors and students and assumes 24 hours of lectures and 10 hours of tutorials. However this may be supplemented by additional revision classes.

Lesson Number Topic(s) 1 Introduction to Economic Concepts

• The basic economic problem

• Wants, resources, choice and opportunity cost

• Production Possibility Frontier Model

• Economic systems

• Circular Flow of Income Model 2 Competitive Markets

• Theory of demand

• Theory of supply

• Equilibrium 3 Competitive Markets

• Real world application of market equilibrium theory.

• Case study: world oil prices

• Elasticity of Demand 4 Market Structure

• Perfect Competition

• Imperfect Competition 5 The Macroeconomic Environment

• Government and markets. 6 Online class test (25%) 7 The Macroeconomic Environment

• National Income Economic Growth 8 Second Online class test (25%) 9 The Global Economic Environment

• International trade Multinational Corporations 10 Submission of coursework (50%)

Learning Contract

In order to succeed you must ensure that you remain focused and undertake the work you are given.

You must take responsibility for your own learning and engage with both staff and fellow students.

You will be expected to:

• Participate in group discussions

• Submit coursework on time

• Respect your fellow students

• Respect your lecturers

How can this be achieved?

• Attend lectures and tutorials

• Prepare for tutorial sessions

• Take relevant notes during lectures and tutorials

• Read recommended and/or relevant textbooks, journals, periodicals

• Review materials provided and/or notes taken, for preparation of assessments

• Complete assessments by given deadlines and to agreed standards

• Work independently or as part of a team where required

Recommended Text

Begg D and Ward D ((2016) Economics for Business (5ed), Berks, McGraw-Hill

Assessment Information

Formative Assessment:

Each week you are expected to read through lecture notes and to complete the appropriate tutorial to assist with independent study. This will test your understanding of topics covered and will provide you with an opportunity during tutorial sessions to clarify any areas of difficulty and get feedback on your learning. Tutorials must be completed weekly.

Summative Assessment:

You will be required to complete three class based assessments for this module. You will be asked to present evidence in each assessment to show that you have met all the minimum knowledge and skills required to meet the outcomes for the Module, as identified in the Module specification.

The first-class test will be held online and is available from Moodle. The marks from this class test will count towards 25% of your final module mark. The second-class test assessment will be an online test (worth 25%). Finally, must submit a coursework to Turnitin on the module Moodle site. The coursework is worth 50% of the overall marks.

Refer to the Specific Assessment Guidelines section for further details.

N.B. It is important to remember that the unlicensed use or copying of another person’s work is not permissible. Such attempts at ‘plagiarism’ may result in disciplinary procedures being taken against you.