International Economic and Political Environment
Faculty Offering
Sebastian Morris
Senior Professor, General Management & Public Policy & Chair, Centre for Public Policy & Governance
- morris@gim.ac.in; chaircppg@gim.ac.in
- +91 9824232121; +91 832 2366733
Programme / Term
No. of sessions
Course description
The course seeks to introduce the student to the international economy, trade and investment theories and to the institutional arrangements governing international investment and trade. The focus is on conceptual perspectives that could help managers understand the international economy. The course is meant for practical managers and policy makers who desire deeper and fundamental understanding of the international political and economic environment. The course covers perspectives from economics, strategy, international relations and sociology.
Objectives
PLO A Graduating students would be able to use respond to the changing requirements of the business environment CLO A1 – Graduating students would be able to analyse and understand the global economic environment for business
Core Courses
- Core theories of international trade – comparative advantage, the infant industry argument, optimal tariffs.
Effective protection rates. Gravity models of trade. Trade blocks and unions. Trade policies. - The technology factor in international trade.
- Foreign direct investment and the multinational corporation. Core theories underlying international investment. The advantage concept, product and industry cycle theories. The OLI Framework. Various parities.
- Capital market theories of foreign direct investments (FDI) and portfolio flows. Multinationals from emerging economies.
- WTO, the negotiation process, reciprocity and MFN. TRIMS, TRIPs. Agriculture under the WTO. Dispute Settlement under WTO. Social and environmental clauses.
- Dynamic comparative advantage. Export led growth (ELG). Multinationals from emerging economies. Late industrialization and emerging economies. Macroeconomics of ELG. Aggressive exchange rates as growth strategy. Rapid economic transformation.
- Culture (Country of origin factors) in competitiveness
- China’s rise in the world economy. The space for China in the world economy.
- Network effects, clusters and innovative IT industries.
Pedagogy
A selected set of readings from both standard texts and important conceptual articles form the basis of discussions in
class and the issues raised by the facts and arguments in the same are discussed in the class. Some of the more facts oriented readings would be quickly presented by the students and then discussed. The emphasis is on readings that bring out the core concepts. In the sessions with cases, the core case facts would be brought out and then discussed. The readings provide the backdrop. All sessions would be video recorded and made available to the students.
Prerequisites
For whom
Evaluation
Title
Percentage
Class Participation and Presentation
30%
Exam
40%
Group Assignment
30%
TOTAL
100%
Section wise outline
Session Seq /Date & Time
Topic
Cases/Readings
-
-
-
Reference Books
Readings as given in the sessions wise outline Sawyer, Charles W. and Richard L. Sprinkle (2009), International Economics. Pearson.