PEPPERDINE UNIVERSITY THE GEORGE L. GRAZIADIO
SCHOOL OF BUSINESS AND MANAGEMENT
DR. SEAN D. JASSO
ECNM 477-24
NATIONAL ECONOMIC MARKETS
FALL 2016
THURSDAY
WLA
SYLLABUS
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NATIONAL ECONOMIC MARKETS
ECNM 477
FALL 2016
DR. SEAN D. JASSO
Day: Thursday
Time: 6:00 – 10:00 p.m.
Campus: WLA
Professor: Dr. Sean D. Jasso
Email: [email protected]
Office: 818-317-8033
Introduction
Welcome to National Economic Markets (or…Macroeconomics)! It is my pleasure to be your
professor and I look forward to working with each of you over the next term. Economics is the
social science that deals with the production, distribution, and consumption of goods and services
and applies established theories to the management of the firm and to national economic systems.
More simply, economics is about individuals, organizations and nations making choices about the
“ordinary business of life” (Alfred Marshall – essentially our first modern econ teacher: 1842 –
1924).
Let us also be mindful that you are studying economics during a unique time in American and
world history. The Economy is significantly challenged – many might argue that the economy is
in crisis. Some have questioned if the fundamentals of economics are weak or are even relevant
at all. Regardless of the current position of the world’s political and market economies, you will
be introduced to the same economic fundamentals that have supported our understanding for
generations of how and why society will continue to look to global markets (or economies) for
solutions – our premise for the course.
Our mission in this course is to introduce you to the new paradigm of thinking
economically and to use economic theory to strengthen your management decision making.
Additionally, the world is among us –
we will learn how to manage the world, its markets, and its politics.
To help us with this broad imperative, the model of the course is much like the pyramid below. At
the base of the pyramid is theory – the intellectual framework. From theory we are better equipped
to reflect and challenge the ideas that are posed to the global manager and decision maker. Lastly,
at the top of the pyramid is the ‘capstone’ – the application of theory and reflection where you put
your knowledge to the test.
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The General Plan
Part One – Philosophy and Theory
Economics – Fundamentals of Exchange
Competitive – Rationale for Excellence
Market Failure – Rationale for Public Policy
Political Economy – Capitalism
Measuring the Economy – GDP, CPI, Unemployment
Part Two – Managing the Economy & Globalization
Monetary System – Federal Reserve
Aggregate Demand and Supply – Short Run Economy
Managing the Economy – Monetary and Fiscal Policy
Globalization as Strategy – Political and Economic Risk
Course Goals and Objectives Think of goals as the results our efforts will be directed and think of objectives as the components
of the goals along the journey.
Goals
Have a comprehensive understanding of the theoretical framework that supports the
discipline of the global enterprise
Develop and grow a philosophy of globalization and global business strategy
Strengthen your research, analytical, and critical thinking skills
Objectives
Central readings – critical immersion into the theoretical frameworks and controversies of
the field
Critical writings – reflections on the readings and your individual and team research
The Global Enterprise – comprehensive analysis and strategic recommendations for
managing the “international business” of tomorrow
The principal issues in the course are:
What determines a country's gross domestic product
What are the political and economic situations affecting a country’s economic output
How can industry navigate through a diverse, political economy in the 21st century
Application
Reflection
Theory
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First, we look at various ways in which GDP is measured (national income). Then, we construct a
model of aggregate demand and aggregate supply in an open economy, with which to analyze the
reasons for short-run variations in GDP and unemployment (i.e., business cycles), and changes in
the price level (inflation).
What can the government do to raise employment or reduce inflation? Here, we analyze the role
of fiscal and monetary policies. We discuss the appropriateness of cutting (or raising) taxes,
reducing (or increasing) government spending, and raising (or lowering) interest rates.
Since our model deals with an open economy, we can analyze the importance of exports and
imports in the economy. Furthermore, we shall explain the relationship between interest rates and
exchange rates.
Lastly, we look at risk factors – we ask, what is the risk of investing in country x or y, that is, we
assume that globalization is part of our everyday business decision criteria and we use risk factors
to help us make effective decisions. Such risk factors include: political risk; economic risk; and
financial risk.
Readings
Mankiw, N. Gregory (2014) Essentials of Economics, 7th Ed. Southwestern Cengage. ISBN-13:
978-1285165950
Rivoli’s The Travels of a T-Shirt in the Global Economy, 2nd Ed. (2009) Wiley. ISBN-13: 978-
0470287163
Schaeffer, Robert K. (2008) Understanding Globalization: The Social Consequences of
Political, Economic, and Environmental Change, 5th Ed. Rowman and Littlefield. ISBN: 978-1-
4422-1527-6.
Responsibilities and Grading
These are the elements on which you will be graded:
Contribution 10%
Exam 1 25%
Exam 2 25%
Individual Paper 30%
Team Project 10%
Economic Handbook Priceless
Total 100%
Grading Scale A = 94% - 100%
A- = 90% - 93%
B+ = 87% - 89%
B = 84% - 86%
B- = 80% - 83%
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C+ = 77% - 79%
C = 74% - 76%
C- = 70% - 73%
D+ = 67% - 69%
D = 64% - 66%
D- = 60% - 63%
F = <59%
General Grade Policy To earn a grade in the course, you must complete all assignments and they must be your
original work. Also, I will require hard copies of assignments at the beginning of class and I
will not receive emailed late assignments.
Contribution (10%)
You are expected to come to class as though you are coming to a business meeting…on time and
prepared. Please note if you are not in class, you have not participated and this may affect your
contribution grade. If you must miss a class, you must advise me of your intended absence with
as much notice as possible.
I expect you to have completed the various readings before our meeting and be ready to engage in
a conversation with your colleagues and with me. Business classes are meant to be interactive,
lively, and participatory from the entire group. I encourage you to ask questions, argue with me
and your classmates, and to challenge some of the theories and concepts we will explore. You
will have many opportunities to speak your mind and I will often assist you along with the process
of communicating to the group.
Specific elements measured: attendance; discussion; homework; teamwork; intellectual
contribution; reading notes. Hence, this is the measure of your push toward excellence in the
course.
On Reading Notes (two pages) and the Reflection (one page): Identify the following:
Central theme – identify author’s main lesson/argument – what is being taught
Critical analysis – evaluate the lesson/argument – strengths/weaknesses
Main takeaways – so what and now what?
Exams (50% Total)
You will have two exams of equal weight. The purpose of the exams is to provide me feedback
on your understanding of the basic economic concepts. Each exam includes 5 essay questions
which you will write in a blue book in class. The exam is a two hour, in-class requirement. The
exams serve as one of the primary benchmarks for your overall performance in the course.
Individual Paper (30%) – The best paper of your life
This project is designed for you to investigate an economic research question of your choice. The
assignment is a 12-15-page research paper that will be developed in three stages over the balance
of the term. In addition to obtaining and applying economic research, this project will help you
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improve your academic writing as I will provide you with current research methods and critical
writing techniques.
A summary of the paper’s criteria:
A research question and central argument
Must follow my organizational guidelines (I will provide these)
Application of a least one major macroeconomic principle/model
Must have a minimum of ten quality references
Must be submitted on time
Must be submitted through turn it in via our Sakai portal
Student will present paper at our semester-end conference
Team Project (10%)
The team project is designed for you to work with other people. Obviously collaboration with
colleagues is a critical element of success within a business and any other organization. The
project is also meant to be fun, rewarding, and certainly informative. As mentioned earlier,
economics is a demanding science that claims to hold a rational connection to social behaviors as
they apply to a utility driven society. Your job as a team is to apply your economic training by
investigating a current international business organization and to perform an economic analysis
and evaluation.
We will call this project your Global Economic Analysis – a consulting piece under the
assumption that you have been hired by a Fortune 500 corporation to perform an extensive
economic analysis of a current or prospective global investment opportunity or continuation within
the global marketplace.
Unlike other team projects where a massive paper accompanies a formal presentation, The Global
Economic Analysis will be quite liberating for many of you. The project is only an oral
presentation, yet supported by a scholarly bibliography and an elegant and highly formal power
point.
Guidelines for Team Project
Below is a guideline for the team project. Your team is a consultancy charged with the
responsibility of providing the executive management of a major public company with effective
insight on whether the company should carry-out or maintain a foreign direct investment
opportunity. Consider your audience as those who will design and execute the general strategy of
the firm. That said, your job is to provide a comprehensive corporate assessment and a
macroeconomic analysis that would provide analytical insight for strategic decision making.
1. Executive Summary
a. Introduction to a major, current corporate strategic decision on the table
b. Brief overview of the target international endeavor
c. Identification of major problem/opportunity
d. Overview of the destination of the project
2. Corporate History
a. Company story to present
b. Company today
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i. Financial highlights
ii. Burning issues and opportunities
c. Strategic Issues
3. Competitive Industry Analysis
a. Competitive environment – marketing issues, regions
b. Regulatory environment
c. Industry predictions
d. Introduction of international investment opportunity
4. Country
a. History of country
b. Political Economy – system, infrastructure, analysis
c. Economic Indicators
d. Political and Economic Risk Assessment
i. Foreign investment environment
ii. Balance of payments and key trading relationships
e. Relationship with US and other foreign stakeholders
5. Commentary and Recommendations
a. Consultative analysis – commentary
b. Implications for company
c. Conclusion
i. Future of the company
ii. Future of the country
iii. Affirm corporate decision
General Requirements:
Table of contents
Corporate cover
APA formatted bibliography
Color “handouts” version of slides
Economic Handbook (Priceless)
This is a great tool for you to take with you after you complete the course. This is an individual
project that is required, graded, yet not part of your total score. The content of the book you write
should apply to you, your job, and your future. You should develop and add the economic
essentials and rules through the term. The book should consist of 50 to 100 brief ‘instructions’ to
macroeconomics. I will give you some ideas throughout the term and you will develop your own
from the readings and projects.
On Excellence – My Philosophy My goal for our time together is simple – we will study economics and you will leave the course
having learned the theories, philosophies, applications, and meaning behind why the study of the
firm and the global marketplace matters to your career and future.
On a higher note, I want the best for you and your investment in this course. At the end of every
term I become your chief evaluator – it is me, a pen, and your name on a piece of paper and an
empty box that will be the grade on your transcript. The standards in this course are high as you
might expect from a leading business school. Therefore, the mark of excellence in the ‘box’ is a
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statement of superior performance. You need to decide what are the opportunity costs required to
achieve this goal and then discuss this goal with me and I will do everything I can to help you
achieve it.
Jasso’s Ethics
Intellectual curiosity is our purpose
Honesty and integrity matter here
Time management is essential
Communication yields success
Professionalism is our environment
Leadership through service
** Recording of my lectures and our class discussions is not permitted
About Your Professor, Dr. Sean D. Jasso
Education
Ph.D., Claremont, School of Politics and Economics
MPP, Claremont, School of Politics and Economics
MBA, Pepperdine
BA, UCLA
Research Concentrations
Politics and Economics: economic development, public policy, political economy,
American politics, comparative politics, political and economic risk, war, peace,
democracy, the new economy
Business and Management: strategy, marketing, corporate governance, leadership, ethics,
globalization, entrepreneurship, small business, the new corporation
Professional
Professor, writer, consultant
Independent management and leadership consultant
Serving industries in manufacturing, hospitality, healthcare, entertainment,
construction, retail, philanthropy and wealth management
Various writing projects focusing on leadership, public policy, globalization, marketing,
strategy, and organizational design
Over 15 years in corporate consulting in the areas of strategy, general management, and
business development
Over 15 years in university teaching and research
Over 15 years in hospitality/service industries primarily with The Ritz Carlton Hotel Co.
as well as corporate healthcare marketing and administration
Dr. Jasso’s Writing Evaluation Criteria:
The following criteria should be used as a guideline for composing your exams and papers in this
course:
An "A" essay:
1. Clearly and completely responds to the question, demonstrating sophisticated critical analysis.
2. Contains a clear and specific thesis statement (located at the end of the introduction).
3. Reflects a strong correspondence between the thesis statement and topic sentences.
4. Uses clear focused arguments, supported by evidence, with appropriate citations.
5. May offer unique arguments or analysis that others missed.
6. Is well organized with few errors in sentence structure, spelling and mechanics.
7. Incorporates complex sentences and smooth transitions, moderate to high thought-per-sentence
and -paragraph counts, and specific arguments from the applicable reading assignments.
8. Contains a complete and informative reference page.
A "B" essay:
1. Adequately responds to the question but at a less sophisticated level.
2. Has a clear thesis sentence, but the thesis statement is weaker than in an "A" paper.
3. Advances solid arguments and supplies adequate evidence or examples for each.
4. Is clear and generally well written, with few errors, proper citations, and a reference page.
5. May gloss over important points or generalize where a more specific analysis is expected.
A "C" essay: Does not meet two or more of the first four criteria for a "B", but answers the question.
Often these papers are too vague or broad, or do not supply adequate evidence.
A "D" essay: Attempts to answer the question, but leaves large gaps in developing the arguments
or analyzing the reading materials.
An "F" paper: Plagiarism or failure to do the paper as assigned.
Some Notes on Writing University Caliber Essays:
1) Always cite work that you paraphrase or quote (including page numbers and web addresses).
2) Never “cut and paste” or directly copy a phrase with three or more words from an internet or
electronic source without using quotations and citing the source.
3) Paraphrasing and using a citation to credit the original author is preferable to using direct
quotes when you are not trying to make a specific point about the quote itself.
4) As a general rule, you should have at least one source cited in each supporting paragraph in
the body of your essay. (The number and breadth of specific citations is a solid indication of
whether you have brought sufficient evidence to bear on your analysis—more is better.)
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General Policies Technology
You are welcome to use a laptop in class; however, you are discouraged from browsing the internet
– it is simply annoying and distracting for all concerned. Additionally, it is a bad habit for future
meetings in the world of work. I would also encourage you to avoid using your cell phones in
class – again, your habits for the future are being shaped in this program.
Nourishment
Our class meets in the evening. Let’s figure out a reasonable way for you to stay nourished
throughout our class meeting without causing our room to become a cafeteria. We will take breaks
– not to worry.
Conduct – our classroom
You are expected to maintain the highest level of moral and ethical behavior while in this program
– always. Let’s enjoy our company, engage in the natural arena of intellectual debate, but also
maintain the demeanor of ladies and gentlemen.
Conduct – the University
The University expects from all of its students and employees the highest standard of moral and ethical
behavior in harmony with its Christian philosophy and purposes. Engaging in or promoting conduct or
lifestyles inconsistent with traditional Christian values is not acceptable.
The following regulations apply to any person, graduate or undergraduate, who is enrolled as a Pepperdine
University student. These rules are not to be interpreted as all-inclusive as to situations in which discipline
will be invoked. They are illustrative, and the University reserves the right to take disciplinary action in
appropriate circumstances not set out in this catalog. It is understood that each student who enrolls at
Pepperdine University will assume the responsibilities involved by adhering to the regulations of the
University. Students are expected to respect order, morality, personal honor, and the rights and property of
others at all times. Examples of improper conduct for which students are subject to discipline are as follows:
Dishonesty in any form, including plagiarism, illegal copying of software, and
knowingly furnishing false information to the University.
Forgery, alteration, or misuse of University documents, records, or
identification.
Failure to comply with written or verbal directives of duly authorized University
officials who are acting in the performance of assigned duties.
Interference with the academic or administrative process of the University or
any of the approved activities.
Otherwise unprotected behavior that disrupts the classroom environment.
Theft or damage to property.
Violation of civil or criminal codes of local, state, or federal governments.
Unauthorized use of or entry into University facilities.
Violation of any stated policies or regulations governing student relationships to
the University.
Disciplinary action may involve, but is not limited to, one or a combination of the
alternatives listed below:
Dismissal – separation of the student from the University on a permanent basis.
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Suspension – separation of the student from the University for a specified length of time.
Probation – status of the student indicating that the relationship with the University is
tenuous and that the student’s records will be reviewed periodically to determine
suitability to remain enrolled. Specific limitations to and restrictions of the
student’s privileges may accompany probation.”
Policy on Disabilities
Assistance for Students with Disabilities
The Disability Services Office (DSO) offers a variety of services and accommodations to students with
disabilities based on appropriate documentation, nature of disability, and academic need. In order to initiate
services, students should meet with the Director of the DSO at the beginning of the semester to discuss
reasonable accommodation. If a student does not request accommodation or provide documentation, the
faculty member is under no obligation to provide accommodations. You may contact the Director of
Disability Services at (310) 506-6500. For further information, visit the DSO Web site at:
http://www.pepperdine.edu/disabilityservices/.
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Our Schedule – Fall 2016 (Thursdays)
Part One - Philosophy & Theory
(Week 1) Sept 1, 2016
On Economics – Fundamentals of Exchange
Introduction
Mankiw 1, 2, 3 (choices and trade – a review)
(Week 2) Sept 8, 2016
On Capitalism
Understanding Globalization
Reading notes
Mankiw 4, 5, 6 (selected discussion on demand and supply)
Jasso’s Globalization – reading notes
(Week 3) Sept 15, 2016
On Competitive Markets – Demand and Supply
Understanding Globalization
Reading notes
Team Company and Country (Marketline & Political Risk Yearbook)
(Week 4) Sept 22, 2016
On Market and Government Failure – A Rationale for Public Policy Mankiw 10 (Externalities)
Understanding Globalization
Reading notes
Selected Readings
INDIVIDUAL PAPER PROPOSAL
Research Question, Methods, Expected Outcome, three major sources
(Week 5) Sept 29, 2016
On Measuring the Economy
Mankiw 15,16 (GDP, CPI)
(Week 6) Oct 6, 2016
On Measuring the Economy
Mankiw 20 (Unemployment)
Review
(Week 7) Oct 13, 2016
Exam 1
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Part Two - Managing the Economy & Globalization
(Week 8) Oct 20, 2016
On the Monetary System & Fiscal Policy
Mankiw 21, 24
Individual Paper Abstract & Working Bibliography
Potentially Synchronous Instruction
(Week 9) Oct 27, 2016
On Aggregate Demand and Aggregate Supply
Mankiw 23
Rivoli’s Travels of a T-Shirt Reading notes
Ghemawat – Distance Still Matters (HBR)
On China
(Week 10) Nov 3, 2016
On Globalization as Strategy – Political and Economic Risk
Rivoli’s Travels of a T-Shirt (complete)
Reading notes
On Vietnam
(Week 11) Nov 10, 2016
Rivoli’s Travels of a T-Shirt (complete)
Reading notes
Review
Paper Outline Due
Abstract and working bibliography
(Week 12) Nov 17, 2016
Exam 2
(Week 13) Nov 24, 2016
Thanksgiving Holiday
Paper and Team Workshop
Economic Handbook Due
Potentially synchronous instruction
(Week 14) Dec 1, 2016
Team Project due – Presentations
(Week 15) Dec 8, 2016
Paper Due – Presentations