Macroeconomics

3 units

The managers are required to understand international dimensions and implications of economics and finance in the context of increasing globalization of Indian economy, and integration of Indian financial markets with the world markets. The sources of capital, and avenues for investment are expected to transcend national borders with removal of restrictions on capital transactions (Capital Account Convertibility). The Indian foreign exchange market will also be integrated with those in other parts of the world, thus increasing the foreign exchange risk. The conditions in global economic environment will affect the performance of individuals, firms, and governments as evidenced by the impact of global financial crisis, the Asian financial crisis, and other events in the past. The participants will gain an understanding of the global economic environment, role of fiscal and monetary policies, interest rates and exchange rates, business cycles, and inflation. The course covers topics such as how exchange rates affect cash flows, how to minimize and/or manage foreign exchange exposure and risk, and the other issues in international business. It will build on the foundations of microeconomics, statistics (quantitative methods), and corporate finance.