23580 The Global Economy (Capstone)

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Subject handbook information prior to 2021 is available in the Archives.

UTS: Business: Economics
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): (23567 Intermediate Microeconomics OR 25567 Intermediate Microeconomics)) AND ((23568 Intermediate Macroeconomics OR 25568 Intermediate Macroeconomics)
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.
Anti-requisite(s): 25580 The Global Economy (Capstone)

Description

This capstone subject outlines an economic perspective on contemporary globalisation. This is done by considering trade theory and open economy macroeconomics, by internationalising concepts that apply equally within economies and by considering perspectives on globalisation. It emphasises contemporary debates related to the global mobility of capital, trade and labour. The subject focuses on policy solutions for global challenges, such as poverty and environmental degradation, and on understanding the worldview of the advocates of particular policy solutions. Students are guided to their own reflective conclusions about the applicability and limitations of mainstream economic analysis.

Subject learning objectives (SLOs)

1.	analyse the economic determinants of international trade and exchange rates
2.	use mainstream economic models to examine other issues associated with a global economy
3.	explain criticisms of mainstream economics (Free Market Liberalism) based on undesirable policy outcomes or the underlying worldview of proponents
4.	explain the role and policies of key international organisations

Course intended learning outcomes (CILOs)

This subject also contributes specifically to the following program learning objectives:

• Critically analyse relevant concepts to understand practice in business and related professions in a global workplace (1.1)
• Demonstrate interrelationships between differing business and related disciplines (1.2)
• Apply critical and creative thinking to address issues in business (2.2)
• Convey information clearly and fluently in high-quality written form appropriate for their audience (3.1)
• Use oral communication appropriately to convey information clearly and fluently (3.2)
• Critically analyse business decisions in terms of ethical practice and social responsibility (4.1)
• Critically analyse sustainability principles for various stakeholders in relation to business contexts (4.2)

Contribution to the development of graduate attributes

This capstone subject draws together material examined in Intermediate Microeconomics and Macroeconomics in order to obtain an economic perspective on contemporary globalisation, with an emphasis on reinforcing core concepts and their inter-relationships. With the basic material from earlier subjects mastered, there is considerable scope for creative and critical thinking as ethical issues and dilemmas are faced. Economic policy decisions affect different stakeholders in different ways and a key theme in the subject is conflict concerning change. Many workplaces and professional environments involve negotiating different perspectives and values of stakeholders and so the Global Economy provides an overarching framework within which contemporary global issues may be debated.

There has rarely been a more exciting and challenging time to study economics. Recent events in the UK (Brexit) and the US (the election of President Trump) are indicative of a profound change in the attitude of many people to globalization in particular, and economics more generally. These developments will influence society for many years to come.

This subject contributes to the development of the following graduate attributes:

• Business knowledge and concepts; via the material on trade, international macroeconomics and related topics
• Critical thinking, creativity and analytical skills; via analytic economic content and reflection on economics itself
• Communication and interpersonal skills; via classroom and tutorial discussion and groupwork
• Attitudes and values; through the identification of values in ‘Philosophers corner’

Teaching and learning strategies

This subject is taught using interactive lectures and tutorials. It provides students with opportunities to develop their public speaking and presentation skills, and to draw on pre-class preparation to engage with the lecturer and other students in class discussion on the key ideas examined in the subject.

Content (topics)

• Gains from trade
• International trade and the intra-national movements of Factors
• Comparative advantage, trade based on autarky prices (Hecksher-Ohlin results), trade and the return to factors (Stolper-Samuelson results), other models of trade
• Trade policy
• Open economy macroeconomics and the transmission of global shocks
• Global environmental issues
• Immigration
• Exchange rates
• Student reflection on limitations of mainstream theory

Assessment

Assessment task 1: Oral Presentation (Individual)

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4 This addresses program learning objectives(s): 3.2
Weight:	10%

Assessment task 2: Assignment (Group)

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4 This addresses program learning objectives(s): 1.1, 1.2, 2.2, 3.1, 4.1 and 4.2
Weight:	30%

Assessment task 3: Final Exam (Individual)

Objective(s):	This addresses subject learning objective(s): 1, 2, 3 and 4 This addresses program learning objectives(s): 1.1, 1.2, 2.2, 3.1, 4.1 and 4.2
Weight:	60%

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Required texts

Krugman P.R., Obsfeld M. & Melitz M.J., International Economics: Theory and Policy, 10th or 11th edition, New York: Pearson.