Economics and Business Environment

Wim Hulleman and Ad Marijs are both teachers of Economics at the Windesheim University of Applied Sciences.

1 Economics and the business environment

1.1 Economic activity and economics

1.2 Business environment

1.3 Absolute and relative data

PART 1

The company in the business sector

2 Markets

2.1 Market, product and the business sector

2.2 Demand

2.3 Supply

2.4 Market price

3 Competition

3.1 Intensity of competition and competitiveness

3.2 The structure of the market

3.3 Business conduct and business results (performance)

3.4 The product’s life cycle and industry structure

3.5 Porter’s diamond

PART 2

The macroeconomic environment of companies

4 Producing

4.1 Prosperity

4.2 Added value

4.3 Production factors

4.4 The structure of the European economy

5 Expenditure

5.1 Consumption

5.2 Investments

5.3 Government expenditure

5.4 Foreign expenditure

5.5 The circular flow of income

6 The business cycle and policy

6.1 The business cycle

6.2 Inflation

6.3 The government

6.4 Macroeconomic basis statistics

6.5 Industry and the business cycle

PART 3

The monetary environment of companies

7 Money

7.1 The functions of money

7.2 Money supply

7.3 Demand for money

7.4 Monetary policy

8 Money and capital markets

8.1 Functions and classification of the money and capital markets

8.2 The money market

8.3 The capital market

8.4 The interest rate structure

8.5 Interest rate risk

PART 4

The international environment of companies

9 International economic relations

9.1 International economic trends

9.2 The theory of comparative costs

9.3 Free trade and protectionism

9.4 The balance of payments

9.5 International cooperation

10 The foreign exchange market

10.1 Characteristics of the foreign exchange market

10.2 Spot exchange rate

10.3 Exchange rate systems

10.4 Exchange rate policy in the European Union

10.5 Forward exchange rate

10.6 Exchange rate risk

11 Country selection and country risk

11.1 Country selection

11.2 Country risk

Appendix

Questionnaire for the analysis of a foreign market

Answers to Test questions

Credits

Index