Business Economics is a sub-field in economic analysis that utilizes various statistical techniques and economic theory to examine the economic relationships of firms and the variables contributing to the variability of the relationships between firms and other businesses and their products and markets. In particular, this sub-field studies firm-firm interaction, including firm-ownership, firm-investment, firm-quality and market structure. It also takes into account the government and non-government organizations that affect firms. It is also interested in the distribution of income and wealth, as well as issues regarding access to resources and job markets. The areas of study may vary from micro-economic issues such as price competition and innovation to macro economic issues such as inflation, deflation and unemployment.
Microeconomics looks closely at micro aspects of business activities such as marketing, sales, customer behavior and investment, while macroeconomics looks at the broad economic picture, looking at the distribution of income and wealth, inflation and unemployment. The main areas of research in this field are macroeconomics, micro economics, decision theory, decision sciences, information technology, entrepreneurship and business. The graduate programs offered by the school include a Bachelor of Science degrees in Economics, Managerial Economics and Applied Economics, all of which focus on micro and macro economic theory and practice. Also available is a PhD program in Business and Economic Analysis.
Economic Theory is the field of study that examines how people, firms and institutions make decisions. The main areas of inquiry in this area are pricing, production, demand and supply, and business cycles. The most prominent economic thinkers of the 20th century are Herbodor M. Miller, Robert E. Lee and Nobel Prize winner W. Edwards Deming. The field of microeconomics attempts to study micro quantities of a product or activity. It attempts to explain business cycles.
Marketing is the science of promoting products and services by marketing them to buyers. Marketing affects the prices of goods and services and determines the demand for them. Market makers affect the demand by deciding which activities should be encouraged by producers and which should be discouraged by consumers. There are many different aspects of market making decisions; market structure, pricing, marketing and advertising.
Entrepreneurship is the study of starting and operating new businesses. The emphasis in this field is the development of small-scale production directed to meet the demand for the particular product or service. Entrepreneurs are the ones who see opportunities for business development. They are also involved in business creation, financial planning, sales and marketing, and procurement. These entrepreneurs use economic theory, market analysis and research to find new uses for existing resources.
Production, marketing and distribution all have their own distinct microeconomies. Microeconomics is the market structure, technological advances, and characteristics of the goods produced in economies that are separated by regional barriers. Industrial nations, which include most of the developed economies, have a unified micro economy based on heavy industry. High levels of productivity, technology and education lead to specialization of labor in a few industries, and these produce goods that are high priced and customers prefer to purchase locally.
A market economy distributes income and wealth equally among all residents. Market economies create opportunities for consumer spending, which encourages businesses to provide goods and services that increase local demand. In markets that have strong consumer demand, business owners make wise decisions regarding production, marketing, distribution and disposal of products. Market economies are characterized by flexible competition, rapid technological change and strong government regulation. In the long run, a business owner may be able to use his knowledge, skill and experience to enter into a new market where he can provide better products at a lower cost.
Allocating financial resources to achieve desired results in macroeconomic activity and to identify opportunities to increase the volume of economic activity are the goals of the foreign direct investment programs. Foreign direct investment refers to investment by domestic or foreign organizations in certain domestic or foreign firms in order to enhance productivity, output and service quality. Such program aims to support economic recovery in the target countries by diversifying the current export structure. These programs often involve a long-term commitment by the foreign organization to invest in certain key economic activity sectors.