2nd Thematic Unit
The thematic unit "Infrastructure Courses II: Economics for Executives" creates the necessary background of knowledge of economic theory in business executives in areas related to the operation of the company in the broad sense of the term.
The content of this section begins with an overview of the basic principles governing economic activity and an understanding of the role of macroeconomic tools and policies (subsection "Macroeconomic and Economic Development"). Next, the macroeconomic models will be studied over time and the economy of a country will be connected with the international financial environment. The following items are covered:
- Basic concepts, inflation, economic cycles,
- Macroeconomic models, the Keynesian approach the IS-LM model,
- Macroeconomic policy,
- Money and banking system,
- Open economy, the Fleming Mundell model,
- The international financial system.
In continuation, in the sub-section "Business Theories", the theories and strategies of companies for gaining a sustainable competitive advantage will be examined, and the four theoretical frameworks will be developed (the strength of the industry-competitors, transaction costs, resources-knowledge, behavior-conflict) in their static and evolutionary dimensions, the four basic types of strategic moves and the relationship between sustainable business advantage and economic sustainability will be studied. The following items are covered:
- Why are there companies?
- What determines the "excellent" size and limit of the company?
- Which strategy mix is the best one to achieve a sustainable competitive advantage?
Finally, in the subsection "Microeconomics and Economics of Management and Organizations", the main tools of financial analysis of the management of companies and organizations are examined. The following items are covered:
- Consumer Theory: Preferences and Benefit. Selection. Income and Substitution. Individual and Market Demand Function. Consumer surplus. Buying and Selling Goods. Timeless Selection.
- Production Theory - Cost: Production Theory. Short Term Theory. Profit Maximization - Offer. Perfect Competition (short-term analysis). Market Balance - Efficiency.