INTERNATIONAL GLOBAL MACROECONOMICS AND REALWORLD IMPLICATIONS
Weekly Learning Outcomes
This week students will
- Formulate a business expansion decision based on macroeconomic topics including comparative
analysis, trade restrictions, tariffs, and exchange rates. - Assess the balance of payments influence on exchange rates and purchasing power.
- Debate the consequences of the U.S. trade deficit.
- Propose economic policies for real-world cases, including government spending and taxes, social
security, and Keynes and Hayek intervention theories.
This week, more than any other week, you will examine a global view on economic policies. You will study international balance of payments and the impacts on exchange rates and purchasing power. The term trade deficit is commonly heard in the news and you will sort through this topic and understand what it means to the U.S. economy. This week you will also have the opportunity to further your work on the Walmart Case Study that you have been working on in previous courses. You will need to use your economic knowledge to help make business decision on the Walmart expansion. Finally, you will apply all your economic knowledge in some real-life cases dealing with government spending and taxation, social security, and differing economist (Keynes and Hayek) policies.
Tamny, J. (2015). Popular economics: What the Rolling Stones, Downton Abbey, and LeBron James can teach
you about economics. Retrieved from https://www.redshelf.com
• In Chapter 18 Tamny provides his perspective on global trade and its impacts. This chapter may
assist you with your International Trade and Balance of Payment discussion forum question this
week. In Chapter 23, Tamny provides his support to the economist Hayek as to why
government intervention is not necessarily helpful. This chapter may assist you with your Cases:
Applying Economics to the Real World Final Project.
o Chapter 18: Conclusion: Free Trade is the Path to Knowledge, Liberty, World Peace,
and Big Raises
o Chapter 23: Conclusion: “Do Nothing” Politicians Deserve a Special Place in Heaven
Horan, P., Wise, I., & Horan, T. (2019). The U.S. social security system: How it works, its financial situation,
and the short-changed benefits paid to the most vulnerable. Review of Business, 39, 15–28. Retrieved
from https://www.stjohns.edu/ The full-text version of this article is available through the EBSCOhost database in the University of Arizona Global Campus Library. This article discusses social security in detail, giving many statistics. The article will give you an up-to-date view of the program as well as some potential issues. The detailed background may help you form a proposal for your Cases: Applying Economics to the Real World Final Project.
Hosansky, D. (2016, June 3). Social security: Is the program running out of money? CQ Researcher, 26, 481– 504. Retrieved from http://library.cqpress.com/ • The full-text version of this article is available through the CQ Researcher database in the University of Arizona Global Campus Library. This detailed article gives a brief history on social security and discusses upcoming issues with the program. The article discusses the privatization option that some politicians tout. This article may assist you with your Cases: Applying Economics to the Real World Final Project.
Karaim, R. (2018, March 30). U.S. trade policy. CQ Researcher, 28, 269–292. Retrieved from http://library.cqpress.com/ • The full-text version of this article is available through the CQ Researcher database in the University of Arizona Global Campus Library. This article presents an in-depth view of why the current administration does not like trade deficits. President Trump would like to restore manufacturing jobs by increasing tariffs and thus reducing trade deficits with China. This goes against most economists’ views and years of U.S. global policies. The article discusses the trade deficit in detail giving the pros and cons. This article may assist you with your International Trade and Balance of Payment discussion forum this week.
Procon.org. (2018). Social Security. ProCon. Retrieved from https://search-credoreference-com • The full-text version of this article is available through the Credo Reference database in the University of Arizona Global Campus Library. This factual article lays out the pros and cons of social security and provides potential alternatives to the existing program. The article may help you form a proposal for your Cases: Applying Economics to the Real World Final Project.
Rodrik, D. (2017, October 20). The trouble with globalization. Milken Institute Review. Retrieved from http://www.milkenreview.org/articles/the-trouble-with-globalization • This article provides a different view on globalization as compared to your textbook. The article recognizes the benefits of a global economy but takes a step back to look at both the winners and losers from a global market. The article touches on current political rhetoric and impact on workers. This is an interesting article to give you a different perspective and may assist you with you International Trade and Balance of Payment discussion forum this week. Accessibility Statement does not exist. Privacy Policy
Shostak, F. (2017, March 13). Balance of payments and the exchange rate: Is there a connection? Retrieved from https://www.cobdencentre.org/2017/03/balance-of-payments-and-the-exchange-rate-is-there-aconnection/ • This article challenges conventional thinking that the balance of payments influences currency rates by stating that the key factor behind the rate of exchange determination is the relative purchasing power of various monies. This article may assist you with your International Trade and Balance of Payment discussion forum this week. Accessibility Statement does not exist. Privacy Policy
Stern, R. M. (2019). Balance of payments. World Book Advanced. Retrieved from https://wwwworldbookonline-com • The full-text version of this article is available through the World Book database in the University of Arizona Global Campus Library. This short article provides information on how the balance of payment impacts a country’s currency rate. This article may assist you with your International Trade and Balance of Payment discussion this week.
Tankersley, J. (2018, March 5). Trump hates the trade deficit. Most economists don’t. The New York Times. Retrieved from https://www.nytimes.com • The full-text version of this article is available through the Business Insight: Global database in the University of Arizona Global Campus Library. This article provides a different view on globalization as compared to your textbook. The article discusses why President Trump is against U.S. trade deficits and how he is using tariffs to gain more balance. This article may assist you with your International Trade and Balance of Payment discussion forum this week.
Heimler, S. [Steve Heimler]. (2018, November 28). The exchange rate and the foreign exchange market [AP macroeconomics explained] [Video file]. Retrieved from https://youtu.be/JsKLBpy6cEc • This video provides an explanation of the exchange rate for currency in the foreign exchange market. In turn, the exchange rate explains why in a country’s balance of payments account the sum of the financial account and the current account must equal zero. This video may assist you with your International Trade and Balance of Payment discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement Privacy Policy
Walmart Case Study: Applying Economic Factors [WLO: 1] [CLOs: 1, 2, 3]. 1st Post Due by Day 3.
Prior to beginning work on this discussion,
• Read Chapters 18 and 19 of Macroeconomics Private and Public Choice.
• Review the Case Study Introduction and Case Study Company Profile.
Starting in the Leadership and Teamwork Course (BUS621), you chose a specific country for your
assignment and this same case study has been used in each of your courses. For this discussion
question, be sure to use your previously selected country.
• Discuss how comparative analysis, trade restrictions, tariffs, and exchange rates of your chosen
country will impact the decision to expand. You need to take these macroeconomic concepts
and apply them directly to the Walmart expansion decision.
• Considering the topics you have studied throughout this course, what other economic factors
may impact the decision to expand?
International Trade and Balance of Payment [WLOs: 2, 3] [CLO: 4]. 1st Post Due by Day 3. Prior to beginning work on this discussion, • Read Chapters 18 and 19 of Macroeconomics: Private and Public Choice. In Chapter 9 you were introduced to the terms trade deficit and trade surplus. In Chapter 19 your view of imports and exports was expanded to include the balance of payments. As part of the balance of payment calculation, trade deficit or trade surplus is called balance on goods and services (p. 396, exhibit 5, line 7). Business news commonly use the term trade deficit to discuss the U.S. economy rather than your textbook’s favored term, balance on goods and services. The trade deficit or trade surplus (p. 396, exhibit 5, line 7) has the biggest impact on the current account. Politicians often warn us about the problems of the US having a trade deficit. For this discussion, cordially debate whether the US should be concerned about our trade deficit. For your initial post, first discuss how the balance of payments can influence exchange rates and purchasing power. Then take a position either for or against trade deficits. In your position, address the pros and cons of the U.S. trade deficits. There are many supplemental resources available to assist you with this debate. Your initial response should be a minimum of 200 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.
. Cases: Applying Economics to the Real World [WLO: 4] [CLOs: 1, 2, 3, 5]. Due by Day 7. Select two of the three cases presented below and prepare a three-page written analysis of each case (six pages total). These case studies provide real-world application to concepts you have studied during this course. For this assignment, you are required to upload your work to your ePortfolio in addition to Waypoint. Learn more about Folio the ePortfolio tool by viewing the Folio Quick Start Guide.
Case 1: Government Spending and Taxation Read Special Topic 1, pages 404 through 418 of Macroeconomics: Private and Public Choice. You may also want to review Chapters 5 and 6 as the role of the government and the political process were covered in detail. Using the Government Spending and Taxation case, Chapters 5 and 6, the knowledge you have gained in this course, as well as at least three additional credible resources, analyze the case by addressing the following: • Describe how government spending and the composition of the government changed in recent decades. In other words, in what areas has the government cut spending and in what areas has the government increased spending in recent decades? • Determine if this change in government spending and composition will help Americans achieve a higher living standard. Be sure to support all opinions with research. • Assess if democracy can survive if the majority of the U.S. citizens pay little or nothing in taxes while benefiting directly from a higher level of government spending. Why or why not? • Propose the composition of government, government spending, and taxation that you believe would work best. Be sure to be specific and support your proposal with research.
Case 2: The Economics of Social Security
Read the Special Topic 2, pages 419 through 428 of Macroeconomics: Private and Public Choice.
Using the Economics of Social Security case, the knowledge you have gained in this course, as well as
at least three additional credible resources, analyze the case by addressing the following:
• Explain how the Social Security system’s basic principles are different from private insurance.
• Determine how Social Security affects the economic well-being of blacks, relative to whites and
Hispanics.
• Assess if the current Social Security system promotes income equality. Why or why not?
• Propose how the Social Security system could be modernized to ensure long-term solvency and
fairness in distribution. Be specific and support your proposal with research.
Case 3: Keynes and Hayek: Contrasting Views on Sound Economics and the Role of
Government (Case 4 in the text)
Read the Special Topic 2, pages 439 through 444. You may also want to review Chapters 11 and 12 of
Macroeconomics: Private and Public Choice as the role of government and different views of
government intervention were discussed.
Using the Keynes and Hayek: Contrasting Views on Sound Economics and the Role of Government
case, Chapters 11 and 12, the knowledge you have gained in this course, as well as at least three
additional credible resources, analyze the case by addressing the following:
• Describe briefly how Keynes’s and Hayek’s economic theory and views differ.
• Contrast the two views on how savings may be harmful or beneficial to the economy.
• Compare the two views on whether the economy would fluctuate more or less over the business
cycle without government intervention. Be sure to address both the inherent stability of the
market economy as well as the impact of government interventions to steer the economy.
• Hypothesize on which economist theory, Keynes or Hayek, you believe is more accurate and
why. Be specific and support your hypothesis with research.
Your Cases: Applying Economics to the Real World final project
