Introduction

Determinants of the level of aggregate demand. General equilibrium of product, money, and labor markets. International macroeconomic relationships. Fundamentals of the economic growth process and income distribution.

The main objective of this course is to enhance participants’ understanding of macroeconomic policy using a model-based approach. The course builds on the intermediate macroeconomics course and develops analytical skills that allow participants to analyze inflation and unemployment issues, long-term economic growth; and design stabilization policies in open and closed economies.

Course Objectives

On successful completion of this course, participants are expected to demonstrate the ability:

• Review of FDI.

• The Components of FDI and their interactions.

• Merger and Acquisitions.

• To use and synthesize the above concepts independently

• To describe and analyze the current macroeconomic issues relating to FDI, Multinational corporations, and Global Value Chains.

• To speak and write essays about the current macroeconomic issues.

Training Methodologies

This 5-day intensive training course uses a mix of interactive techniques to ensure maximum understanding, comprehension, and retention of the information presented. This includes evaluation of case studies, brief presentations by the instructor, group exercises, and discussion followed by participants' presentations of the results.

Target Audience

• Finance professionals

• Finance managers

• Corporate controllers, financial controllers

• treasury professionals

• chief accountants

• accounting managers

• senior accountants

• banking professionals

• corporate business professionals.

Outlines

Day 1

Foreign Direct Investment. (FDI)

• Concepts of FDI, Mergers & Acquisitions(M&A).

• FDI versus trade, licensing, franchises.

• FDI and Multinational Corporations

Day 2

• Dunning’s Eclectic Paradigm.

• Eclectic Paradigm theory (OLI) expanded: Ownership, Localization, and Internalization.

• OLI versus Vernon’s product life cycle hypothesis

Day 3

Determinants of FDI: Market motive, Resources Motive, Financial Development Index and Infrastructure motives

• Market Motive

• Resources Motive.

• Financial Development Index

• Infrastructure Spending and Effects

Day 4

• Vertical and horizontal integration

• Offshoring and Outsourcing.

Global Value Chains 

• Answering the Big Questions

• Unbundling Theory.

• The Failure of Trade Accounting

Day 5

Global Value Chains and Inter-Country Input-Output Tables

• Introduction: National IO Tables.

• Inter-Country IO tables.

• Deriving Technical Coefficients Matrix.

• Interpretation of Technical Coefficients Matrix.

• Leontief Inverse: Derivation.