Managing in a Global Economy

1. Managing in a Global Economy Joe Ricciardi Robert McAuliffe

2. Where You Have Been… Economics Marketing Strategy Industry Company Modules I, II & III Accounting Economics Entrepreneurship Finance Marketing Operations Org. Behavior Strategy

3. Micro Industry Company Modules I, II & III Cash Flow Stmt Balance Sheet Income Stmt

4. Macro MGE --- NBS Global MGE --- NBS Country Industry Company

5. Business Environment:Economic & Political Volatility Navigating Troubled Waters Managing Volatility

6. Exogenous Factors Influencing Firms • Market Volatility • Inflation • Labor Market Restructuring • Currency Crises • Interest Rate Market Liberalization Pure Competition Other Market Structures Monopoly

7. MGE Global MGE Country Industry Company GDP Growth Rate Unemployment Rate: Wages Interest Rates Inflation Rate Exchange Rates Balance Sheet Income Statement Cash Flow Statement

8. Short Run Focus on factors that increase demand Relative to capacity Long Run Sources of Economic Growth (supply) Long run Focus on factors that increase supply (capacity) Corporate governance Labor/Management relations Human capital development Industrial policy Technology policies Links Between MGE & NBS NBS Focus MGE Focus

9. Context • Legacy of Currency Crises & Contagion • Tequila in Mexico • Tigers in Asia • Vodka Meltdown in Russia • Caipirinha in Brazil • Argentina’s Last Tango with the IMF • Japan’s Debt-Deflation • China, US Trade Deficits, and the Euro • Sources or Failures of US Growth • Global Outlook?

10. The Macro Model Real Goods Market Labor Market Foreign Exchange Market Money Market

11. Ground Rules • Read, Think, Ask questions, ... • Goals • De-mystify the Business & Financial Press • Use and Apply the Macro Model • Develop a Framework for Interpreting the Business Environment • Cold Call