Economics for Trade and Industry
Main aims of the Unit
The main aim of this unit is provide learners with a sound knowledge of economic principles against an industrial and commercial background so that learners become aware of the effects on business of various government policies and actions, domestically and internationally.
Learning Outcomes for the Unit
Upon successful completion of the course students will be able to:
Learning and teaching methods/strategies used to enable the achievement of learning outcomes:
Learning takes place on a number of levels through lectures, class discussion including problem review and analysis. Formal lectures provide a foundation of information on which the student builds through directed learning and self managed learning outside of the class. The students are actively encouraged to form study groups to discuss course material which fosters a greater depth learning experience.
Relevant experience is taken into consideration for students 21 years of age and over who have not completed any formal qualifications.
Main Topics of Study
The meaning of factors of production. The division of labour. Specialisation and exchange. Economic change and its impact. Barriers to the mobility of labour. Combining the factors of production. Diminishing returns.
Price and value. Demand and supply. Elasticity of Demand and supply. Determination of market prices. Perfect competition, monopoly, monopolistic practices, oligopoly. Average and marginal revenues. Monopoly compared to perfect competition. Output under perfect competition.
Outputs and costs. Classification of costs. Economies of scale (internal and external).The growth of intentional firms and the survival of small firms. Diseconomies of scale and their implications.
National income and gross national product. Measuring the national income and distribution of income. Trade unions and collective bargaining. Demand and supply of labour. Wage determination. Economic rent. Savings, interest and structure of interest rates.
Introduction to international economics. Comparative advantage and disadvantage and the gains from trade. Production functions. Economic growth and international trade. Balance of payments. Exchange rate adjustments. Exchange control and currency convertibility. Trade policy. Tariffs. Quotas. Economic and institutional effects. Other barriers to trade. International and Regional trade organisations. Investments and the multinational firm. Risk evaluation. International monetary systems. Economics and the EU and its members. Business environments and their effect on individual business.
Indicative Reading for this Unit
Economics for Business J.Sloman, K. Hindle, D. Garratt 6th edition (FT Publishing International)
Essentials of Economics J. Sloman, D. Garratt 7th edition (Pearson)
Alternative Text and further reading
Economics for Business D. Ward, D. Begg 5th edition (Mc Graw Hill Education)
Economics for Business C. Mulhearn, H. Vane (Palgrave)
Guideline for Teaching and learning time
(10 hours per credit)
50 Hours - Lectures / Seminars / Tutorials / Workshops:
Tutorial support includes feedback on assignments and may vary by college according to local needs and wishes.
50 Hours - Directed learning:
Advance reading and preparation / Class preparation / Background reading / Group study / Portfolio / Diary etc
100 Hours - Self managed learning:
Working through the course text and completing assignments as required will take up the bulk of the learning time. In addition students are expected to engage with the tutor and other students and to undertake further reading using the web and/or libraries.
Final Examination: 70%