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: sjasso@pepperdine.edu

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

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Summary of Directed Instruction Elements

Directed Instruction

Activity

Hours

In-Class Instruction 56

Synchronous

Instruction

None scheduled this term

Asynchronous

Instruction

4 (potentially week 8

and/or13)

TOTAL 60

REMANSIT VIRIUM