Managing Global Enterprises

Economics | 2018-19

This course addresses key aspects of economics, including microeconomics, macroeconomics, and business economics. It also discusses how managers use economic analysis to make important decisions. Specific topics include Cost-Benefits Analysis; The Demand Curve; Inflation, Unemployment, and Interest Rates; and Strategic Behavior, Price Leadership, and Contribution Margins.


Prof. Sebastian Edwards

Prof. Sebastian Edwards


Sebastian Edwards is the Henry Ford II Professor of International Business Economics at the UCLA Anderson School of Management.

From 1993 until April 1996, he was the Chief Economist for the Latin America and Caribbean Region of the World Bank. He is a research associate of the National Bureau of Economic Research (NBER), a member of the advisory board of Transnational Research Corporation and co-chairman of the Inter American Seminar on Economics (IASE).

He is also past-president of the Latin American and Caribbean Economic Association (LACEA), an international professional association of economists with academic interests in Latin America and the Caribbean region and a member of the Scientific Advisory Council of the Kiel Institute of World Economics, Kiel, Germany. In September 2004, Professor Edwards was appointed to California Governor Arnold Schwarzenegger’s Council of Economic Advisors.

Edwards has been a columnist for the Wall Street Journal, and is the author of more than 200 scientific articles on international economics, macroeconomics and economic development. His articles have appeared in The American Economic ReviewThe Journal of Monetary EconomicsThe Economic JournalOxford Economic PapersThe Journal of Development EconomicsThe Quarterly Journal of Economics, the Journal of Economic Perspectives and others. His work and views are frequently quoted in the media, including by the New York Times, the Financial Times, the Los Angeles Times, the Wall Street Journal and The Economist.

Edwards is an associate editor of The World Economy, the Journal of International Trade and Economic Development, the Journal of International Financial MarketsInstitutions and Money, and Analisis Economico. For almost ten years he was the co-editor of the Journal of Development Economics.

Edwards has been a consultant to a number of multilateral institutions, including the Inter-American Development Bank, the World Bank, the IMF, and the OECD. He has also been a consultant to the United States Agency for International Development and to a number of national and international corporations. He has worked in Argentina, Brazil, Bolivia, Chile, Colombia, Costa Rica, Egypt, Guatemala, Honduras, Indonesia, Korea, Mexico, Morocco, New Zealand, Nicaragua, Tanzania and Venezuela. He has also consulted for a number of international financial institutions and multinational firms.

Sebastian Edwards was born in Santiago, Chile. He was educated at the Catholic University of Chile, and received an M.A. and Ph.D. in economics from the University of Chicago.


Ph.D. Economics, 1981, University of Chicago
M.A. Economics, 1978, University of Chicago
Licenciado Economics, 1975, Universidad Catolica, Chile


Mercosur, monetary policy, capital markets, Consumer Price Index, currency crises, devaluation, currency, emerging markets, employment, exchange rates, the Federal Reserve, inequality, inflation, Latin America, Mexico, NAFTA, and poverty

Course Learning Objectives:

By the end of this course, you will be able to:

  • Apply concepts from micro-, macro-, and business economics – including cost/benefits analysis – to managerial decisions such as production, pricing, hiring, competitor-response, marketing, and expansion.
  • Use the concept of the demand curve to inform decisions affecting a product’s costs and revenues.
  • Make managerial decisions based on economic principles and tools such as GDP, PPP, and consumption statistics; inflation, unemployment, and interest rate; public sector debt and deficit; mark-up and price elasticity.


What Is Economics; Why Is It Important?

Module Learning Objectives:

As a result of participating in this module, you will be able to:

  • Use economic concepts to make managerial decisions about such issues as production, pricing, and hiring.
  • Use cost/benefit analysis to determine the wisdom of a particular managerial decision.
  • Consider macroeconomic complexities such as inflation, interest rates, currency exchange rates, and unemployment rates to evaluate a proposed choice such as global expansion.

Module Components:

  • Video Lecture 1: A Decision Tool for Managers
  • Video Lecture 2: Cost-Benefits Analysis
  • Video Lecture 3: Complexities in Economics
  • Reading 1: What Is Economics, and Why Is It Important?
  • Reading 2: Cost-Benefit Analysis (CBA)
  • Reading 3: Classical Theory
  • Reading 4: Four Schools of Economic Thought: Classical, Marxian, Keynesian, and the Chicago School
  • Assignment: Case Study on Good Home, Inc.
  • Check for Understanding Assessment

Core Concepts of Micro-Economics

Module Learning Objectives:

As a result of participating in this module, you will be able to:

  • Analyze a demand curve to identify the number of products that will be sold at several different price points.
  • Analyze a business situation involving incremental revenue to make a valid proposal that solves the issue.
  • Determine the incremental cost of producing one additional item, based on provided data.

Module Components:

  • Video Lecture 1: The Demand Curve
  • Video Lecture 2: Economics and Revenues
  • Video Lecture 3: Economics and Costs
  • Reading 1: Microeconomics and Macroeconomics
  • Reading 2: Demand, Supply, and Equilibrium in Markets for Goods and Services
  • Reading 3: Deriving the Demand Curve
  • Reading 4: Economics – Profit and Revenue
  • Assignment: Case Study on Good Home, Inc., continued
  • Check for Understanding Assessment

Core Concepts of Macro-Economics

Module Learning Objectives:

As a result of participating in this module, you will be able to:

  • Select strong economies to consider for market expansion, based on GDP, PPP, and consumption statistics.
  • Evaluate a group of countries as possible market expansion targets, based on inflation, unemployment, and interest rates.
  • Using data on public sector debt and deficits, as well as currency strength, evaluate a group of countries as possible market expansion targets.

Module Components:

  • Video Lecture 1: Introduction to Key Concepts
  • Video Lecture 2: Inflation, Unemployment, and Interest Rates
  • Video Lecture 3: Public Deficit and Debt; International Trade and Currencies
  • Reading 1: Bitcoin Explained Like You’re Five: Part 5 – Macroeconomics
  • Reading 2: Principles of Macroeconomics, Chapter 6: The Macroeconomic Perspective
  • Assignment: Case Study on Good Home, Inc., continued
  • Check for Understanding Assessment

Core Concepts of Business Economics

Module Learning Objectives:

As a result of participating in this module, you will be able to:

  • Calculate mark-up for different countries, based on established standards.
  • Based on data concerning price elasticity, select the optimum loss leader from a group of potential products.
  • Based on data concerning fixed and variable costs, as well as product pricing, determine the contribution margin of a particular product.

Module Components:

  • Video Lecture 1: Optimal Pricing and Market Segmentation
  • Video Lecture 2: Loss Leaders
  • Video Lecture 3: Strategic Behavior, Price Leadership, and Contribution Margins
  • Reading 1: Applications of Demand and Supply
  • Reading 2: Impacts of Supply and Demand on Businesses
  • Assignment: Case Study on Good Home, Inc., continued
  • Check for Understanding Assessment


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