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Written specifically for MBA students, this Second Edition of MANAGING IN A GLOBAL ECONOMY: DEMYSTIFYING INTERNATIONAL MACROECONOMICS provides a strategic business focus and presents macroeconomics in the context of models for decision-making. With focused business applications, concrete business examples, and an approach to macroeconomic theory via markets, Marthinsen demonstrates how macroeconomics can help leaders make better business decisions. The book helps students grasp practical "big picture" concepts, nurtures an understanding of what causes macroeconomic variables to change, and relates these changes to issues confronting managers. Marthinsen integrates the three major macroeconomic sectors (the real goods market, real loanable funds market, and foreign exchange market) in a user-friendly way. Liberating readers from dry, overly complex macroeconomic models, Marthinsen uses theory only as a means to an end for practical understanding and includes a minimum of math. Real world business examples show how economic shocks, such as monetary and fiscal policies or shifts in international capital flows, affect management decisions. Keeping readers visually engaged with strategic use of figures, tables, charts, and illustrative exhibits, MANAGING IN A GLOBAL ECONOMY emphasizes the interaction among markets and equips MBAs with a macroeconomic perspective that will last (and be used) for years.
- EXPANDED: This new edition contains 22 chapters, reorganizing and expanding the content of the 19 chapters in the first edition.
- UNDERSTANDING AND MONITORING LABOR MARKET CONDITIONS: the discussion of outsourcing, offshoring, and reshoring has been significantly expanded and developed to address the effect of offshoring on GDP and employment.
- THE ECONOMICS OF VIRTUAL CURRENCIES has been added to the text to address the effect that stateless and unregulated virtual currencies, like Bitcoin, have on central banks' abilities to control their nations' (or currency areas') money supplies and inflation rates. It also addresses their potential to disrupt fiscal policies by making economic transactions untraceable and, therefore, nontaxable.
- THE REAL GOODS SECTOR has a new, insightful discussion of the spending and fiscal multipliers.
- BALANCE OF PAYMENTS FUNDAMENTALS has been substantially revised to more closely reflect the International Monetary Fund's methodology for reporting and analyzing nations' balance of payments statistics.
- CAUSES, CURES, AND CONSEQUENCES OF THE GREAT RECESSION addresses a once in (nearly) a hundred-year event, with its equivalent occurring during the Great Depression of the 1920s and 1930s. This chapter focuses on the economic and political incentives that created this economic and financial crisis, how the problems were diagnosed, and the fiscal and monetary policies implemented to stop the bleeding, cauterize the wounds, and start the healing process.
- REORGANIZED: Each chapter is now divided into two parts: "The Basics," which covers the fundamental concepts of the chapter, and "The Rest of the Story," which embellishes "The Basics" and allows for greater flexibility in topic coverage.
- MACRO MEMOS: Providing additional examples -- and historical context for chapter concepts -- Macro Memos spotlight macroeconomic analysis and theory in action. Discussions include offshore outsourcing (Ch. 3), depreciation of the Thai Baht and Canadian expansionary monetary policy (Ch. 10), crowding out in Mexico's real loanable funds market (Ch. 11), potential effects of Mexico monetary policy on a multinational healthcare firm like Boston-based Fenway, Inc. (Ch. 16), and creating scenario planning frameworks at firms like Royal Dutch/Shell, General Electric, or Roche Holding (Ch. 18).
- COMPREHENSIVE COVERAGE: In addition to thorough coverage of chapter concepts, appendices cover more advanced or special topics in detail, such as "Tracking Economic Conditions in Countries Around the World," "The Gibson Paradox," "Financial Assets Included in U.S. M1 and M2 Money Supply Measures," and "Foreign Currency Options."
- OUTSTANDING TEACHING SUPPORT: When you adopt the Second Edition, you will have access to a rich array of teaching resources, including a companion website that gives you access to the full Instructor's Manual with teaching tips, answers to all end-of-chapter Review and Discussion questions, a Test Bank of almost 800 additional multiple-choice questions, PowerPoint slides, and more!
- MBA SPECIFIC: Unlike virtually every competing text on the market, MANAGING IN A GLOBAL ECONOMY was written specifically for MBAs. Instructors no longer have to adapt an undergraduate text to the MBA level, while MBA students can enjoy a text that reflects their academic and professional experiences.
- "BIG-PICTURE" ECONOMICS: Extremely practical, MANAGING IN A GLOBAL ECONOMY focuses on the interactions of the real goods, real loanable funds, and foreign exchange markets to emphasize the "big picture." Each chapter approaches its subject from a general, macro-level "The Basics" and then from a more detailed micro-level "The Rest of the Story."
- UNIQUE THREE-SECTOR MODEL: Using this model, students can perform country analyses, understand articles/editorials in the business media (such as Financial Times and The Wall Street Journal), better formulate financial statement projections, and contribute meaningfully to corporate strategy and planning discussions.
- LESS MATH, MORE ILLUSTRATIONS: Marthinsen uses minimal math (algebra) and keeps readers engaged with his strategic use of figures, tables, and charts. Clear and concise illustrative exhibits help readers thoroughly understand even the most challenging chapter concepts, making the book appealing to MBAs with a variety of undergrad backgrounds.
- REAL-WORLD EMPHASIS: While traditional texts are known for their complex expositions on theory, Marthinsen takes a more applied approach, placing theory in the context of how it affects real work and demonstrating how macroeconomics can help leaders make better decisions. Instead of imaginary widgets, the book is packed with focused examples and applications depicting actual business practices.
Part I: UNDERSTANDING A NATION'S ECONOMIC CONDITIONS.
2. Taking an Economic Pulse: Measuring National Output.
3. Monitoring Labor Market Conditions.
4. Inflation, Real GDP, and Business Cycles.
5. Inflation: Who Wins, and Who Loses?
Part II: REAL LOANABLE FUNDS MARKET.
6 Monetary Aggregates: Measuring Money.
7. Financial Intermediation, Market, and Intermediaries.
8. The Power of Financial Institutions to Create Money.
9. Who Controls the Money Supply and How?
10. The Economics of Virtual Currencies.
11. Interest Rates and Why They Change.
Part III: THE REAL GOODS SECTOR.
12. Price and Output Fluctuations.
13. Fiscal Policy and Automatic Stabilizers: What Managers Need to Know.
Part IV: FOREIGN EXCHANGE MARKET.
14. Basics of Foreign Exchange Markets.
15. Exchange Rates: Why Do They Change?
16. Balance of Payments Fundamentals.
Part V: SHORT-TERM ECONOMIC CHANGES: PUTTING IT ALL TOGETHER.
17. Putting It All Together.
18. Economic Shocks to Nations with Flexible Exchange Rates.
19. Economic Shocks to Nations with Fixed Exchange Rates.
20. Causes and Consequences of the Great Recession.
Part VI: LONG-TERM ECONOMIC CHANGES.
21. Causes of Long-Term Growth and Inflation.
22. Long-Term Exchange Rate Movements and Comparative Advantage.