A83020 Innovation and Competition in the Global Markets

At the end of the course the student will be able:

a) to elaborate an economic report making good use of publicly available information on firms, countries and industries

b) to perform effectively in a group environment by demonstrating leadership and team-building qualities

c) to communicate and present complex arguments in oral and written form with clarity and succinctness

At the end of the course the student will be able:

a)  to assess and critique the opinions offered by market analysts, journalists, and others about global economic and financial issues

This is a course about exploiting the opportunities created by the emergence of a global economy and managing the risks that globalization entails. Nowadays nations are more economically integrated than at any other point in human history. Individuals and companies face new opportunities and new challenges. On one side, the opportunity to sell to global markets rather than a single national market. Furthermore, the sharp differences among nations in wage rates and national resource endowments allow multinational firms to create value by locating different aspects of the value chain in those countries where they can be undertaken most efficiently. Similarly, individuals have an incredibly expanded set of choices. On the other hand, globalization increases the number and range of potential competitors in nearly every industry. This implies that for a firm the pressure to continuously increase its efficiency is much bigger than before. Understanding the characteristics of firm internationalization, the consequences of government trade policies, the genesis of financial and currency crises, stock market booms and busts, and social and labour unrest is a crucial aspect in taking informed managerial decisions. Adverse macroeconomic phenomena can have a catastrophic impact on firm performance. Managers that have and use a coherent framework for analysing these phenomena will enjoy a competitive advantage.

The course also aims at developing a sound understanding of the mechanisms linking innovation with the evolution of the economic system at different level of aggregation. The class blends frontal lecture with other activities in order to help students to practice the key concepts of the area.

The course is organized into two modules:

Module 1: Topics in global markets (see detailed syllabus)

1.  Introduction to globalization
2.  Domestic and international business: what are the differences?
3.  The global trade and investment environment
4.  How trade policies shape the international environment

Module 2: Economics of innovation (see detailed syllabus)

1.  Innovation and growth
2.  Sectoral patterns of innovation
3.  Firms dynamics
4. Technology policy

To enrich the learning experience, we can invite some guest speakers to speak to our class either in person or through Skype. If you are interested in inviting anyone from the UN, WTO, and any organizations working in international trade, please make a suggestion. We will invite the speakers on your behalf.