05260037 - Business Economics and Legal Environment

Part 1: Business Economic Environment

Course objectives

1. On successful completion of this module, students will be able to:
2. Outline key features of the external environmental framework relevant to managerial decision-making
3. Use a number of models and analytical tools to understand the economic and business environment and apply to strategic decision making
4. Understand the nature of markets, competition, market structures, implications for conduct and performance and competitive advantage
5. Develop an understanding of macroeconomic issues, goals and policies;
6. Understand international trade patterns, theories, the role of governments and international organisations such as the World Trade Organisation (WTO) and implication for business managers
7. Examine the driving forces behind the globalisation process, implications for businesses and the key aspects of the globalisation debate

Targeted Knowledge and skills
• Provide students with an understanding of the economic context within which firms operate and make strategic decisions
• Enable students to apply economic reasoning to strategic management decisions
• Provide an introduction to key global economic issues and enable students to analyse their impact on business organisations at national, European and global levels
• Develop an understanding of the recurrent debates on international macroeconomic policies and their impact on business organisations
• Enable students to develop written communication, research, analytical, critical evaluation and problem solving skills

 

Part 2: Legal environment

Course objectives
On successful completion of this module, students will be able to:

1. Possess a firm knowledge and understanding of the rules of European and International business law
2. Be able to critically review legal agreements for distribution, licensing, sale of goods and agency
3. Be able to critically analyse the law as it applies to their particular work and evaluate new developments in this area
4. Be capable of utilising a full range of learning and research resources
5. Be skilled in presenting complex ideas and arguments involving business law in writing and orally
6. Be skilled in sourcing the law and formulating legal.

Targeted Knowledge and skills
• Develop an advanced knowledge of business law at the European and International levels
• Develop a knowledge of legal vocabulary
• Master fundamental concepts of international law as they pertain to business
• Enhance forensic and critical legal skills through case analysis and legislative evaluation
• Engage in independent reading and research using both traditional and internet resources
• Develop the skills of legal research, organization of the researched material, report writing, team work and public speaking

Part 1: Business Economic Environment

The Market System: market demand, supply and equilibrium. Analysis of impact of factors influencing demand and supply on equilibrium price and quantity.

Structure Conduct and Performance Model:

• Market structure: perfect competition, monopoly, monopolistic competition, and oligopoly.
• Nature and extent of competition. Collusive and competitive behaviours in Oligopolistic markets.

Introduction to external environment analysis (PESTEL).

• Industry Analysis (Porter’s Five Forces Model)
• Application to different companies and markets

Introduction to different macroeconomic variables and their recent trends.

• Aggregate demand, aggregate supply and the price level.
• Brief overview of different macroeconomic schools of thought.

Macroeconomic goals of low inflation, low unemployment, economic growth and recent trends in main macroeconomic statistics; monetary and fiscal policies and conflicts in achieving macroeconomic goals. International macroeconomic policy consensus.

Recent trends in world trade patterns, geography and composition of world trade.

• Relationship between economics growth and international trade.
• Brief overview of international trade theories; arguments for and against free trade/protection.
• Implications for business managers.

Role of government in restricting trade: tariffs, quotas, subsidies, Voluntary Export Restrictions, dumping etc.

• Brief historical background to trade and protection and role of GATT and WTO.
• Implication of international trade and trade restrictions for business managers.

Globalisation of markets, production and enterprise.

• Drivers of the globalisation process.
• Arguments for and against globalisation.
• Implications of globalisation for business managers.

 

Part 2 - Legal Environment

1. The Legal Environment of International Business
2. International sales law with a focus on the Convention on Contracts for the International Sale of Goods)
3. Trade terms
4. Documentary sales, trade finance and letters of credit
5. International commercial transactions (distribution, agency, licensing, technology transfer, franchising)
6. Foreign Direct Investment

1. Farnham, P.G., (2015) Economics for Managers, Global Edition, 3rd ed., Pearson Education
2. Hill, Charles W.L, (2022) Global Business Today, 12th ed., McGraw Hill Irvin
3. Hill, Charles W.L. (2023) International Business, Competing in the Global Marketplace, 14th ed., McGraw Hill International
4. Parkin, M., (2019) Economics, 13th ed., Pearson Education
5. Sloman, J., Hinde, K. & Garratt, D. (2019) Economics for Business, 8th ed., Pearson Education

1. Meiselles, Michala (2013), International Commercial Agreements – An Edinburgh Law Guide, Edinburgh University Press

• Besanko, D., Dranove, D. & Shanley, M. (2017) Economics of Strategy, 8th ed., John Wiley and Sons
• Lynch, R., (2015) Strategic Management, 7th ed. Ch 3, Pearson Education
• Rugman, A.M. & Collinson, S. (2017) International Business, 7th ed., Prentice Hall   
• WTO  World Trade Development Reports 2017 to 2022
• Schaffer, Earle, and Agusti, International Business Law & Its Environment, 6th ed., Thomson

• www.mintel.co.uk and www.keynote.co.uk web sites are excellent for market and industry analysis

• www.ft.com
• www.economist.com

• www.bized.co.uk
• www.economics.ltsn.ac.uk

• www.oecd.org
• www.imf.org
• www.europa.eu.int  For links to all EU institutions
• www.worldbank.org
• www.wto.org

• Smith, Wealth of Nations
• Friedman, The World is Flat

Continuing Examination
Nature of student work and proportion weight:
Business Economics: Individual Report (50%)
Legal Environment: Group Assignment (50%)

TEACHING METHODS
This course will be taught using an amalgamation of the Socratic Method, lectures using power point slides complemented with case studies and problem solving activities in seminars. All sessions are very interactive and student participation is encouraged at all time.

TEACHING MATERIAL:
Certain materials provided electronically (including slides, some readings). Books available from the Library at Lyon 3.

TECHNOLOGY ENHANCED LEARNING:
Use of VLE if available


PRE-REQUISITE
Students are not expected to have existing knowledge of the subject matter. Students are expected to review the readings and where relevant to work through the case studies and exercises assigned. For further information, please review the Work Plan (for the Legal Environment component of this course).