International Business Management requires, among others, the capacity to analyse and understand the global trends that end up affecting the functioning of the business, since we are experimenting an increasingly globalized process. For example, if a company exports and the exchange rates changes significantly, or when the inflation rates drag the interest rates, which ends up altering the company’s profitability.
This subject specifically teaches MaDI students (potential managers) to be able to analyse, understand the changes that take place in international economics as well as to evaluate the macroeconomic environment of the different countries where the company may planning to export.
In order to fulfill this goal, the subject is split into 3 parts:
Revision of economic indicators
In this first part, the different economic indicators are thoroughly revised:
- Current indicators (real, public, foreign, monetary and financial sectors)
- Structural indicators (economic development, competitiveness and ability to do business)
Such indicators will be used as thermometers of the economic situation in the countries or regions that the company is interested in, either because they operate in them or because they intend to start in the short term. This revision is carried out using macroeconomic data in real time ( Reuters Eikon platform).
Discussion on economic politics
In the second part of the International Business Management subject, the main economic policies that governments and central bank use to correct macroeconomic imbalance are discussed. These policies (monetary, fiscal, financial and structural reforms) undoubtedly have an intense impact on the company, so the manager needs to anticipate the side effects that stem from their implementation.
This discussion is supported by multiple recent practical cases. For example: have austerity measures been efficient in Greece, including the bailout plans? Should Turkey carry on with its accommodating policies or should it, on the contrary, make them more restrictive?
Analysis of the economic environment
Using all the previous information and following the analysis methodology of International Monetary Fundcountries, in the third part of the subject the current situation and prospects of the international economy are discussed, as well as some of the countries that seem particularly special at this very moment.
We talk about cases such as: is there deflation or disinflation in the Eurozone? Will the USA move from tapering to tightening in 2015 or will the recovery be slower?
Likewise, students will present in groups the macroeconomic analysis of a given country, where they apply everything they have learnt during the course.