CORE SUBJECTS AT A GLANCE
The basic concepts and analytical tools of
international economics are precisely the same as those
studied in the principles of economics. International
Economics is mainly concerned with the study of economic
relations between sovereign nations focusing on the
international aspects of economic activities. The core of
international economic relationship comprises only that
aspect of the entire range of international relations the
basis of which is the exchange of goods and services between
people belonging to different nations.
International economics has several tasks to
perform. The following are some of the questions which
International Economics seeks to answer:
1. Why do international movements of labour and
capital take place?
2. What determines which goods and services will
be exported and imported
by each country, on what terms, in what quantities?
The effects of international exchange of goods and
factor movements on
the productive efficiency and structure of national economies and on the
level and distribution of national income in the countries engaged in
Apart from these basic concepts, our course
also comprises of some theories on comparative cost
advantage of Adam Smith, David Ricardo, Equilibrium Theories
of Pricing of Hecksher-Ohlin, Foreign Exchange Rate, BOP,
Purchasing Power, Parity Theory, certain trade policies such
as Tariffs, Customs Union, Dumping, International Monetary
Institutes like IMF, IBRD etc.
Investing in financial securities is now
considered to be one of the best avenues for investing one's
savings while it is acknowledged to be one of the most risky
avenues of investment. It is rare to find investors
investing their entire savings in a single security.
Instead, they tend to invest in a group of securities; such
a group of securities is called a Portfolio.
Creation of a portfolio helps to reduce risk
without sacrificing returns. Portfolio management deals with
the analysis of individual securities as well as with the
theory and practice of optimally combining securities into
An investor considering investment in
securities is faced with the problem of choosing from among
a large number of securities. His choice depends upon the
risk-return characteristics of individual securities. He
would attempt to choose the most desirable securities and
like to allocate his funds over this group of securities.
Again he is faced with the problem of deciding which
securities to hold and how much to invest in each. The
investor faces an infinite number of possible portfolios or
groups of securities. The risk and return characteristics of
portfolios differ from those of individual securities
combining to form a portfolio. The investor tries to choose
the optimal portfolio taking into consideration the risk
return characteristics of all possible portfolios.
Econometrics, the result of a certain outlook
on the role of economics, consists of the application of
mathematical statistics to economic data to lend empirical
support to the models constructed by mathematical economics
and to obtain numerical results. Econometrics is an amalgam
of economic theory, mathematical economic statistics and
mathematical statistics. Yet it is a subject that deserves
to be studied in its own right for the following reasons.
It makes statements or hypotheses that are
mostly qualitative in nature. For example, microeconomic
theory states that, other things remaining the same, a
reduction in the price of a commodity is expected to
increase the quantity demanded of that commodity. Thus,
economic theory postulates a negative or inverse
relationship between the price and quantity demanded of a
commodity. But the theory itself does not provide any
numerical measure of the relationship between the two, i.e.
it does not tell by how much the quantity will go up or down
as a result of a certain change in the price of the
commodity. It is the job of the econometrician to provide
such numerical estimates.
Economic statistics is mainly concerned with
collecting, processing and presenting economic data in the
form of charts and tables. This is the job of the economic
statistician. It is he or she who is primarily responsible
for collecting data on GNP, employment, unemployment, prices
etc. The data thus collected constitutes the raw data for
econometric work. But the econometric statistician does not
go any further, not being concerned with using the collected
data to test economic theories. Of course, one who does that
becomes an econometrician.
The main aim of this curriculum is not only to make the students aware of the economic systems prevailing in our country but also to build managerial aptitude in them. The course focuses mainly upon Marketing Management, Principles of Management and Organisational Behaviour, Human Resource Management, Operations Research, Financial Accounting and Strategic Management, and Business Forecasting.