Globalization presents incredible opportunities and challenges for firms. Economic policies that have steadily liberalized economies over the past two decades have allowed firms to expand beyond their home market to seek global market opportunities, achieve economies of scale and leverage cost advantages. This has enhanced the potential profitability for any firm that exploits these global opportunities. At the same time, the global pool of potential competitors can reduce a firm’s profitability. This means that even managers of firms that do not engage in international commerce must understand the economics of international trade and finance.
This course is designed to equip future managers with the analytical tools to understand the salient issues facing multinational corporations today. This entails understanding not just the economics at the firm level, such as evaluating the costs and benefits to expanding a firm’s activity abroad, but also understanding how government policy and macroeconomic factors affect firms’ decisions. A combination of theoretical models, statistical analysis and case studies is used to build a foundation for approaching international business decisions.