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.

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.

Target Audience

• Economists and economic policy analysts interested in macroeconomic policy and global economic issues
• Finance and economics professionals working with international markets, FDI, and multinational corporations
• Government officials and policymakers involved in economic planning, trade, and investment policies
• Researchers and academics specializing in macroeconomics, international economics, and development economics
• Professionals in international organizations, development agencies, and economic institutions
• Investment analysts and consultants focusing on foreign direct investment and global value chains
• Business professionals working in multinational corporations and cross-border operations
• Graduate students and early-career professionals in economics, finance, or international business
• Individuals seeking to understand macroeconomic dynamics, globalization, and international investment flows

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.