TEESSIDE BUSINESS SCHOOL

INTERNATIONAL
ECONOMICS

Module Guide

2005/06

Module Outline

Welcome to International Economics. This module provides an introduction to

international business activities and the global environment in which international
firms operate. The content of the module is very topical, often the subject of TV news
programmes and documentaries and filling the pages of national newspapers. The
influence of international business is enormous in the modem world. Through trade
and investment, technology and the activities of regional and international
organisations, the countries of the world are becoming more interdependent. This
interdependence describes what we call globalisation. Multinational enterprises
dominate many of the world's markets. As future decision makers in the business
world you will need a good understanding of the international environment in which
business operates.
The module is concerned with the issues facing international business firms in dealing
with all types of cross-border transactions. It places particular emphasis on the global
nature of business transactions and the role of multinational enterprises. In particular,
it highlights developments in the world's major trading nations as well as in newly
industrialising economies like China. The module encourages discussion of recent
issues such as the environmental impact of globalisation or the implications of e
business and the so-called new economy.
This module guide provides an outline of the lecture content and seminar activities,
together with a list of useful books, journals and websites. It is important that you
purchase the recommended textbook and prepare the seminar work in advance. The
module also contains details of the module assessment.
Wishing you a successful semester

International
Team

Economics

Teaching

Lecture Programme
Week

Topic

1.

Introduction to international economics; globalisation and its implications

2.

International business operations and multinational enterprises (MNEs);

the impact of technology

3.

International trade: theory and evidence

4.

Foreign direct investment and collaborative strategies

5.

International competitiveness

6.

Exchange rates and their implications for international business

7.

The cultural and institutional environment of international business

8.

International institutions and global issues

9.

Regional economic integration

10.

The world's major trading nations

11.

The world's emerging economies

Teaching Team
The lecture programme for International Economics will be delivered by:
Andrew Harrison (module leader) (Tel. 34 2875, e-mail: a.harrison@tees.ac.uk)
Other members of the seminar team are:
Lynton Bussell (Tel. 34 2878, e-mail: l.i.bussell@tees.ac.uk)
Julian Gough (Tel. 34 2854, e-mail: julian.gough@tees.ac.uk)
Stephen James (Tel. 34 2854, e-mail: s.james@tees.ac.uk)
Bill Suthers (Tel. 34 2844, e-mail: w.suthers@tees.ac.uk)

Module Aims
I. To promote an awareness of the importance of international business activities
and of the international business environment.

2. To develop an understanding of the types of activity undertaken by multinational

enterprises and of their interaction with the countries in which they operate.
3. To develop an understanding of the role of international institutions and the
growing importance of regional integration between countries.
4. To encourage students to analyse the process of globalisation and its influence on
patterns of trade, investment and other international business activities.
5. To develop an awareness of the changing nature of international business in the
modern world.

Main Learning Outcomes

On successful completion of this module, the student will be able to:
I. Demonstrate a comprehensive and detailed knowledge of the activities involved in
international business

2. Analyse and evaluate the role of multinational enterprises (MNEs) in the

globalisation of business activity
3. Analyse and evaluate the impact of economic, political, legal and cultural issues in
the international business environment
4. Analyse and evaluate the role played by international institutions and the impact
of regional integration between countries
5. Compare ideas and challenge accepted views on the nature and impact of
globalisation and other international business developments
6. Plan, undertake and evaluate a research project on an international business theme
7. Synthesise, appraise and evaluate information from a variety of sources

Indicative Content
1. Activities Involved in International Business
the nature of international business
motives for going international
major international business activities
2. The Role of Multinational Enterprises (MNEs)
main features of MNEs
role ofMNEs in global economic activity
interaction between MNEs and the countries in which they operate
the influence of culture
the globalisation of markets, resources and the world's economies
3. Economic, Political, Legal and Cultural Issues in the International Business
Environment
alternative business models: Anglo-Saxon, European and East Asian models
business development in the emerging economies of the Pacific Rim and
elsewhere
problems in the least developed countries
the role of culture, formal and informal institutions, and ethics
4. The Role of lnternational Institutions and Regional Integration
institutions involved in global governance: United Nations, World Trade
Organisation, International Monetary Fund, World Bank etc.
the world trade order: free trade, trade barriers and trade relations between
countries
levels of integration between countries and their static and dynamic implications
analysis of major regional economic groupings, e.g. EU, NAFTA, APEC etc.
5. Globalisation and Other International Business Developments
alternative ideas on the nature and impact of globalisation
evaluation of the evidence for globalisation
evaluation of the nature and impact of the 'new economy' and other
international business developments
implications for international competitiveness
6. International Business Research Topics
detailed research and evaluation of topical issues in international business

TEACHING/LEARNING STRATEGIES
Lectures

These will provide an explanation of the key concepts and issues and will point
students to appropriate sources of further reading and study. Whilst attendance at
lectures is essential to enable students to understand the framework of the module,
these sessions should be seen as only the starting point for individual study.
Independent reading of textbooks, journal articles and good newspapers is necessary
to develop sufficient understanding of the international business environment.
Tutorials/Seminars

The seminars are where we explore the topics introduced in the lectures in more
depth. They provide opportunities for students to participate in discussions and
contribute, either individually or in a group, their views and observations on the topics
under discussion. It is essential that tutorial work is well prepared before coming to
the class. Failure to do this preparatory work will hinder the progress of individuals
or the group as a whole.
Some of the tutorials are based on case studies or other applications and are designed
to enhance knowledge, understanding and skills pertinent to the topics being covered.
It is therefore essential that students regard each tutorial session very seriously as a
means of stimulating learning, reinforcing knowledge and understanding and, where
appropriate, remedying difficulties. It is in this spirit that each student will be
expected to participate actively in tutorial sessions. Some of the tutorials will also be
used to provide guidance on the research topics and exam preparation.
ASSESSMENT

Assessment of this module is based entirely on a time-constrained examination.

However, you are also required to carry out on-going research activity throughout the
semester in preparation for the examination. You will be required to write about
specific aspects of your research in Section A of the examination. Further details on
the research topics are given below.
Examination Format

The examination will last 2 hours and 15 minutes. The questions will be unseen, but
the research topics in Section A will be known in advance and copies of newspaper
articles which are the basis for questions in Section B will be issued about three
weeks before the examination. In Section A you will be required to answer ONE
question (one third of the total marks) based on your chosen research topic. In
Section B you will be required to answer TWO two-part questions (one third of the
total marks each) based on case studies or newspaper articles. It is recommended that
you spend 45 minutes answering your chosen question in Section A and 45 minutes
on each of your chosen questions in Section B. In each section there will be a choice
of questions. You will not be allowed to take any notes, books or other materials into
the examination. New copies of the case studies or newspaper articles will be issued
with the examination paper.