ECONOMICS 6485 Fall 2005

COURSE TITLE:

Economic Environment of Business (T,TH 5:30-6:45 pm)

COURSE DESCRIPTION:

The course will provide an overview of a number of economics topics. Areas of focus will include macroeconomic topics such as current issues in the U.S. economy, world economic conditions, international finance, and free trade agreements (NAFTA/CAFTA). H. Nicol (Geosciences) will lead a related discussion on “globalization.” Additional topics will include labor economics, sports economics, company forecasting, personal finance, taxation policy, and others TBA. Guest speakers from the Economics Department, other UWG departments, and outside of UWG will lead the discussions. In addition to lectures, the class will allow considerable time for discussion. As part of this course, students will read and discuss two best selling books on the economy. Finally, students will conduct research on a particular company examining such issues as the economic environment, the competitive environment, and trends in the industry. Results of this research will be presented to the class.

INSTRUCTOR:

David Boldt dboldt@westga.edu
Office Phone: (678) 839-6477

OFFICE HOURS:

M-F 10:00-11:30pm, T,TH 5:00-5:30 and other times by arrangement.  Please contact me by email if you would like to meet at a more convenient time.

REQUIRED READING:

The Economist (www.economist.com). A subscription can be purchased at The Economist website for the semester for $15 (check under academic offers). The library subscribes to The Economist also. Articles from The Economist will be assigned throughout the semester.

Freakonomics, Steven Levitt and Stephen Dubner, 2005 and The Travels of a T-Shirt in the Global Economy, Pietra Rivoli, 2005. Both these books can be purchased on Amazon.com.

Other selected readings assigned during the term by the various faculty leading class discussions.

PREREQUISITES:

Economics 4400 or equivalent

EXPECTED LEARNING OUTCOMES:

It is expected that this course will contribute to the Masters of Business Administration (MBA) learning goals. Each student will demonstrate the ability to:

1) recognize key economic and regulatory issues and the impact of these on decision making in business (LG3)
2) conduct company-specific research addressing such issues as the economic climate, government regulation, competitive forces, labor, and financial trends (LG1, LG3 , LG4)
3) communicate effectively in both written and oral formats (LG1)

LG refers to the Master of Business Administration (MBA) Learning Goals (www.westga.edu/~busn/lg_mba.htm)

COURSE STRUCTURE/EVALUATION:

The lecture topics (and dates) are listed below. Grades in the course will be assigned based on the following:

i) Examinations---There will be three (3) examinations in the course including the final. The dates for the examinations are listed below. Each examination will count for 21 percent of the course grade (total of 63 percent). The examinations will be in-class and will contain short answer questions based on the lectures, class discussion or the assigned readings.

ii) Research Paper and Presentation--- The research paper is to be written in the form of a "memo" to senior management (of a company of your choosing). In the first part of the paper, describe current macroeconomic conditions in the U.S. and international economy as they relate to your company. In the second section of the paper, focus attention on the individual company (and/or industry). Include a discussion of the company (brief history, products, competition, etc.) as well as current profitability. What are significant "microeconomic" issues facing the company (e.g. labor issues, pricing, technology, competition, etc.). Current conditions and major trends impacting the company or industry should also be addressed in this section of the “memo.” The final portion of the paper should contain recommendations for action. Based on what you have observed about the industry and economy, make recommendations regarding issues such as the company's potential for expansion, merger possibilities, possible new product lines, or ways in which the company can become more competitive. I expect the memo to be well-written, double spaced typed and about 6 pages long. In addition, include a list of all references used in preparing the memo. The memo will be due on November 29. Each student will present the results of their company research to the class beginning on November 29. This presentation should be about 15 minutes long using power point. The research paper and presentation will count for 26 percent of your class grade.

iii) Class Participation and Discussion--- Class participation will be measured in various ways including attendance and contributions to class discussion. Students will lead the discussion on selected assigned readings during the semester. Participation will count for 11 percent of your grade.

LECTURE/EXAM SCHEDULE:

Date	Topic/Presenter	Reading Assignments
August 23	Introduction/Macroeconomics (Boldt)	Class handouts (8/23/05) Economic and Financial Indicators, A Short History of the U.S. Economy, U.S. Economy, Japan’s Economy, Russia’s Economy, China and World Economy, Too Much Money
August 25	Macroeconomics (Boldt)
August 30	Saving and Retirement (Gustafson)	Determining the Saving Rate
September 1	Saving and Retirement (Gustafson)	Web Links (Estate Planning, Making a Will)
September 6	Macroeconomics (Boldt)	Articles on Turkey, Bulgaria
September 8	Macroeconomics (Boldt)	Articles on Economic Impact of Katrina, Rise in Oil Prices and Weekly Economic Commentary (Sept 2, 2005)
September 13	Open Economy Econ (Dutt)	Background on Euro (ECB website)
September 15	Open Economy Econ (Dutt)	China and India (Business Week)
September 20	International Trade (Schaniel)	Trade Based on Absolute Advantage
September 22	No Class
September 27	Exam #1
September 29	International Finance (Schaniel)	Parity Conditions in International Finance
October 4	Globalization (Nicol)
October 6	Globalization (Nicol)
October 11	World Economy (Boldt)	The Economist, Survey on World Economy, 9/24/05
October 13	Asymmetric Information (Austin)
October 18	Labor Issues (Kassis)
October 20	Labor Issues (Kassis)
October 25	Fair Tax (Bird)
October 27	Sports Economics (Dole)
November 1	Exam #2
November 3	NAFTA, CAFTA (Lopez)
November 8	Development Issues (Patrick)
November 10	Public Finance (Smith)
November 15	Forecasting (Shiver)
November 17	Discussion-Freakonomics
November 22	Discussion---The Travels of a T-Shirt
November 29	Presentations
December 1	Presentations
December 6	Presentations
December 13	Final