This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS

Prerequisites

Basic microeconomics (in particular supply and demand, the cost curves; knowledge of market structure is an asset)

Learning outcomes

At the end of the course, the student should be able to:
• Assess opportunities and threats for firms in a globalized economy
• Build a basic analysis of country trade opportunities
• Analyse market (demand and supply side)
• Identify the market structure and deducing consequences for the company
• Apply the most appropriate theories of international trade to diagnose the industry and environment characteristics
• Use properly the theories about the internationalisation of firm to evaluate the company internationalization strategies

Course description

1. The Firm : This modules introduces how economists represent the firm in the economy.
2. Market structures and the firm : How businesses are influenced by their national and global market environment: Prices and incentives
3. The global economy : Features of emerging economies and business environment leading to global competitiveness and international trade theory.
4. The firm in the global economy : Exporting and international organization of the firm.

Class type

Class structure

Teaching methods

• Lecture
• Presentation
• Project work
• Research

Assessment

There will be a final exam and a group project. The final exam focuses on the theoritical concepts. The group project is an application of the concept to a real firm.

Recommended reading

• Pugel, T., International Economics, McGraw Hill Irwin, chapters 1 to 6, 14. -

• Lipczynski, John, John O.S. Wilson and John Goddard, Industrial Organization: Competition, Strategy, Policy, Third edition, Prentice Hall – Financial Times, Harlow, 2009. -

• Markusen, J.R., Multinational Firms and the Theory of International Trade, September 2004, MIT Press -

• Krugman, P., M. Obstfeld, International Economics: Theory and Policy, Addison Wesley, chapters 1 to 7. -

• Porter, M. E., The Competitive Advantage of Nations, Havard Business Review, March-April 1990 -

• Helpman, E., Melitz M., Yeaple, S., Export versus FDI with Heterogeneous Firms, American Economic Review, 2004, vol. 94, 300-316 -

• Deardorff, A.V.; Stern, R.M.. What You Should Know about Globalization and the World Trade organization, Review of International Economics, August 2002, Vol. 10 Issue 3, 404-423 -

Internet resources

• International Monetary Fund, Direction of Trade Statistics, Washington DC,

• The World Trade organisation:

• Foreign Trade Information System: