Description

Economics for Business

Focuses on three essential branches of modern economics: competition and the market system, macroeconomics, and the economics of openness and globalisation including the analysis of international trade, foreign investment and exchange rates.

The book has a very strong business focus and has been used in the UK on many MBA courses as well as short, often one semester undergrad. business economics courses. The book examines economics from a business perspective and is selective in its coverage, focusing on setting out the big picture and including topics on the basis that they throw light on issues relevant to business.

It has a policy perspective which puts theory of the firm, strategy and macroeconomic issues in a policy context which helps students see the relevance of the theory. The book does cover macroeconomics, as appropriate for business students, and looks at globalisation, trade liberalisation, economic integration, exchange rates, etc. The selective, thematic, policy oriented approach makes this book appropriate for MBA and post-experience students, as well as for undergrads.

Features

• Assumes no previous background in economics.
• Focuses on issues relevant to an increasingly globalised environment.
• Strikes a balance between theory and application.
• Clear writing style and attractive learning aids (boxes, questions for discussion, exercises and further reading).

New to this Edition

• Assumes no previous background in economics.
• Focuses on issues relevant to an increasingly globalised environment.
• Strikes a balance between theory and application.
• Clear writing style and attractive learning aids (boxes, questions for discussion, exercises and further reading).

Table of Contents

Preface to the third edition
Acknowledgements

1 The economic policy consensus 1
Introduction
1.1 The economic policy consensus 2
1.2 Why policy changed
1.3 Implications for the future
1.4 Criticisms of the new consensus
1.5 Will the consensus last?
Summary
Questions for discussion
Exercises
Further reading

2 What makes nations grow?
Introduction
2.1 Trends in economic growth
2.2 Growth theories
2.3 Human welfare and sustainable growth
2.4 Policy prescriptions for growth
2.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading
Appendix 2.1: The economics of the new economy

Part I The market system and competition

3 The market system in action
Introduction
3.1 The market system
3.2 The role of prices
3.3 Movements in demand and supply
3.4 The role of traders and arbitrage
3.5 The efficiency of the market system
3.6 The free market system in social context
3.7 Conclusions
Summary
Questions for discussion
Exercises
Further reading

4 Market demand and the pricing decision
Introduction
4.1 What is a ‘rational’ consumer?
4.2 Deriving the market demand curve
4.3 Elasticities of demand
4.4 Estimating the demand function
4.5 Price elasticities and the pricing decision
4.6 Conclusions
Summary
Questions for discussion
Exercises
Further reading

5 The firm in a competitive market
Introduction
5.1 Profit maximisation
5.2 Rules for maximising profit
5.3 Cost structure of the firm
5.4 The transaction costs approach
5.5 From cost structure to supply curve
5.6 Conclusions
Summary
Questions for discussion
Exercises
Further reading

6 The economics of market power
Introduction
6.1 Firm size
6.2 The economics of market power
6.3 How to sustain monopoly power
6.4 Market power with few firms – the case of oligopoly
6.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading
Case study 6.1: The diamond cartel

7 Competition policy, privatisation and regulation
Introduction
7.1 The case for competition
7.2 Competition policy
7.3 Privatisation
7.4 Regulation
7.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading

8 Government intervention and the market system
Introduction
8.1 Income distribution and the equity–efficiency trade-off
8.2 Market failures
8.3 Government intervention
8.4 Government failure
8.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading

9 Business and the environment
Introduction
9.1 Economic growth and the environment
9.2 Environmental policies
9.3 Policy instruments: design and effect
9.4 Impact on business
9.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading

10 Hiring labour and the investment decision
Introduction
10.1 The hiring decision
10.2 The investment decision
10.3 Conclusions
Summary
Questions for discussion
Exercises
Further reading

Part II The macroeconomic framework

11 Aggregate supply, aggregate demand and the price level
Introduction
11.1 How is gross domestic product (GDP) calculated?
11.2 Potential GDP, actual GDP, and GDP at purchasing power
parity (PPP)
11.3 The aggregate supply (AS) curve
11.4 Aggregate demand (AD) and money
11.5 Conclusions
Summary
Questions for discussion
Exercises
Further reading
Appendix 11.1: The money supply process

12 Price stability and central banks
Introduction
12.1 What is price stability?
12.2 Deviation from price stability 1: inflation
12.3 Deviation from price stability 2: deflation

Back Cover

'I have used Economics for Business as a key text on my Managerial Economics module in the Warwick MBA programme for a number of years. The book possesses the rare quality of being both accessible and rigorous. It is comprehensive, yet admirably succinct. The new material on international issues - such as trade agreements, currency crises and the Euro debate - in the latest edition will be greatly appreciated by teachers and students alike.'

Professor Robin Naylor, University of Warwick

'Economics for Business is an excellent text, which is very well written and demonstrates the wealth of knowledge possessed by its author.'

Professor Steve Bradley, University of Lancaster

Specially tailored for a business-oriented audience, this text provides a complete introduction to economics for business programmes. With its non-technical and down-to-earth style this book will help make the economics module on your business or professional programme a more instructive and enjoyable experience.

Features

• Full coverage of central issues in business-oriented economics course e.g. interest rates and determinants of exchange rates.
• Focuses on the increased openness and globalisation of the economy.
• Coverage of both macro and micro topics.
• Strikes a balance between theory and application.
• Sets economic ideas in their historical and social context.
• New!
• Material on China in the WTO, deflation, Argentina¿s currency crisis, the pros and cons of joining the Euro.
• New! Even more exercises and questions for discussion.

Economics for Business is especially suitable for MBA and other executive programmes, as well as for post-experience conversion courses.

 

Dermot McAleese is Whately Professor of Political Economy, and Dean of the Faculty of Business, Economics and Social Studies, at Trinity College Dublin. He has served on the Board of the Central Bank of Ireland and was visiting professor at the World Bank. He lectures on MBA and executive courses in Trinity College and he is a member of the visiting faculty of the Irish Management Institute and of the ENPC School of International Management (Paris). He has written extensively on economic policy and international economics.

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