ECONOMICS AND THE BUSINESS ENVIRONMENT

Transcription

1 ECONOMICS AND THE BUSINESS ENVIRONMENT Third edition John Sloman and Elizabeth Jones Financial Times Prentice Hall is an imprint of Harlow, England London New York Boston San Francisco Toronto Sydney Tokyo Singapore Hong Kong Seoul Taipei New Delhi Cape Town Madrid Mexico City Amsterdam Munich Paris Milan

2 Brief contents Guided tour V - Preface Custom publishing Publisher's acknowledgements XII xvi xx xxii INTRODUCTION Chapter 1 Business and the economic environment Part B I MARKETS, DEMAND AND SUPPLY Chapter 2 Chapter 3 Chapter 4 The working of competitive markets Demand and the consumer Supply decisions in a perfectly competitive market THE MICROECONOMIC ENVIRONMENT OF BUSINESS Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Pricing and output decisions in imperfectly competitive markets Business growth and strategy Multinational corporations and business strategy in a global economy Labour and employment Government, the firm and the market

3 vi Brief contents THE MACROECONOMIC ENVIRONMENT OF BUSINESS Chapter 10 Chapter 11 Chapter 12 Chapter 13 The economy and business activity National macroeconomic policy The global trading environment The global financial environment Web appendix Key ideas Glossary Index V G.I 1:1

4 Contents Guided tour * Preface Custom publishing Publisher's acknowledgements XII xvi XX xxii Part A I INTRODUCTION Chapter 1 Business and the economic environment 1.1 The business organisation 1.2 The external business environment 1.3 The economist's approach to business Box 1.1 Box 1.2 Box 1.3 Minding The Gap The biotechnology industry The changing nature of business Part end - additional case studies and relevant websites Chapter 2 MARKETS, DEMAND AND SUPPLY The working of competitive markets 2.1 Business in a perfectly competitive market 2.2 Demand 2.3 Supply 2.4 Price and output determination 2.5 Elasticity of demand and supply Box 2.1 Box 2.2 Box 2.3 Box 2.4 Stock market prices UK house prices Shall we put up our price? Speculation

5 VIM Contents Chapter 3 Demand and the consumer 3.1 Demand and the firm 3.2 Understanding consumer behaviour 3.3 Estimating and predicting demand 3.4 Stimulating demand Box 3.1 Box 3.2 Box 3.3 Box 3.4 Box 3.5 Rogue traders Problems for unwary insurance companies Taking account of emotion Brands and own brands Advertising and the long run Chapter 4 Supply decisions in a perfectly competitive market Box 4.1 Box 4.2 Box 4.3 Box 4.4 Box 4.5 Box Production and costs: short run Production and costs: long run Revenue Profit maximisation Diminishing returns and business Making use of your fixed inputs Industrial clusters and competitiveness Minimum efficient scale The logic of logistics E-commerce Part end - additional case studies and relevant websites Part C 1[ THE MICROECONOMIC ENVIRONMENT OF BUSINESS J Chapter Box 5.1 Box 5.2 Box 5.3 Box 5.4 Box 5.5 Box 5.6 Chapter Pricing and output decisions in imperfectly competitive markets Alternative market structures Monopoly Oligopoly Game theory Alternative aims of the firm Setting price Concentration ratios Windows cleaning Supermarket wars The prisoners' dilemma Stakeholder power? Easy pricing Business growth and strategy Strategic analysis Strategic choice %

6 Contents ix 6.3 Growth strategy 6.4 Financing growth and investment 6.5 Starting small Box 6.1 Box 6.2 Box 6.3 Business strategy the Samsung way Recessionary strategies The Dyson Dual Cyclone vacuum cleaner Chapter Box 7.1 Box 7.2 Box 7.3 Box 7.4 Multinational corporations and business strategy in a global economy Multinational corporations Business strategy in a global economy Problems facing multinationals Multinationals and the host state The transnationatity index Merger activity Grocers go global Investing in China Chapter 8 Labour and employment 8.1 The UK labour market 8.2 Market-determined wage rates and employment 8.3 Power in the labour market 8.4 Minimum wages 8.5 The flexible firm and the market for labour 8.6 The labour market and incentives Box 8.1 Box 8.2 Box 8.3 Box 8.4 Chapter 9 'Telecommuters' The Winter of Discontent The Internet and labour mobility The market for talent * Government, the firm and the market 9.1 Market failures 9.2 Business ethics and corporate social responsibility 9.3 Government intervention in the market 9.4 Environmental policy 9.5 Competition policy and business behaviour 9.6 The regulation of business Box 9.1 Box 9.2 Box 9.3 Box 9.4 Box 9.5 The Body Shop A Stern warning The problem of urban traffic congestion A lift to profits? What price for peace of mind? Part end - additional case studies and relevant websites

7 Contents THE MACROECONOMIC ENVIRONMENT OF BUSINESS Chapter Box 10.1 Box 10.2 Box 10.3 Box 10.4 The economy and business activity The key macroeconomic objectives Business activity and the circular flow of income The determination of business activity The business cycle Money, interest rates and business activity Unemployment Inflation Doing the sums The London Olympics Business expectations and their effect on investment Inflation or deflation: where's the danger? Chapter 11 National macroeconomic policy 11.1 Fiscal policy 11.2 Monetary policy 11.3 Supply-side policy Box 11.1 Box 11.2 Box 11.3 Box 11.4 Fiscal policy and business From golden to temporary rules Inflation targeting Productivity and economic growth Chapter 12 The global trading environment 12.1 International trade 12.2 Trade restrictions 12.3 The world trading system and the WTO 12.4 The European Union and the Single Market Box 12.1 Box 12.2 Box 12.3 Strategic trade theory Beyond bananas Preferential trading Chapter 13 The global financial environment 13.1 The balance of payments 13.2 The exchange rate 13.3 The growth of global financial flows 13.4 Economic and monetary union in the EU 13.5 International economic policy: managing the global economy Postscript: is globalisation a 'good thing'?

8 Contents xi Box 13.1 The importance of international financial movements 363 Box 13.2 Exchange rate fluctuations and the plight of SMEs 366 Box 13.3 The euro/dollar seesaw 368 Box 13.4 A Worldwide epidemic Part end - additional case studies and relevant websites 383 Web appendix W:l Key ideas, K:l Glossary ' "" G:l Index 1:1 Supporting resources * Visitwww.pearsoned.co.uk/sloman to find valuable online resources. Companion Website with Grade Tracker for students Online workbook and study guide with interactive exercises, diagrams and videos Multiple choice questions with Grade Tracker function to test your learning and monitor your progress Business issues for each chapter Up-to-date case studies with questions for self study Topical economic issues relating directly to material in the book Economics news articles with features on topical stories, with analysis and links to the book Hotlinks to over 200 relevant sites on the web Answers to all in-chapter'pause for Thought' questions and to odd-numbered end-of-chapter questions An online glossary to explain key terms etext, a complete online version of the textbook that you can annotate, highlight and search Also: The regularly maintained Companion Website with Grade Tracker provides the following features: Search tool to help locate specific items of content Online help and support to assist with website usage and troubleshooting For lecturers By registering in our Companion Website with Grade Tracker as an instructor you can create a class and allow students to enrol to track individual and class progress TestGen testbank of customisable questions for formative or summative assessment Customisable lecture plans in PowerPoint with animated figures. One version contains multiple choice questions that can be used for lectures with an electronic audience response system Downloadable PowerPoint slides of all figures and most tables from the book I A range of teaching and learning case studies Thirteen workshops in Word for use in class or assessed work Answers to all box questions and end-of-chapter questions, and to questions in workshops, and Web Case Studies These lecturer resources are also available on a memory stick from your Pearson Education sales representative. For more information please contact your local Pearson Education sales representative or visit