Just like Managerial Economics 1, Managerial Economics 2 is all about application of economic theories but it deals with macro economics as compared to managerial economics 1 that dealt with micro economics. The difference between micro and macro economics is that micro economics deals with the economics on an individual unit or firm level whereas macro economics deals with the economy of a nation.
Why do I need to Study this Subject?
Knowing the economy of our nation or collective economy of an industry is a must while working as a professional. This subject teaches us to understand and differentiate between the various aspects that impact the economy, how they can be studied and how they can be understood. Knowledge and understand of the economy of a nation or an industry as a whole is a must as it helps a firm know what, how and when to produce certain goods and commodities. The condition of the economy at a given point of time will determine the demand and supply factors that are essential in conducting the various functions of production by a firm.
Is it a Boring subject?
No, it is a subject that has theory, numerical sums and diagrams; so it is a combination of a lot of interesting things all in one. This subject has the base of economics but is very different from what you had studies in your managerial economics- 1, for those who find the concepts of micro economics as uninteresting and difficult to understand you will be able to eaily relate with this subject and find it easier to approach.
Is it a Difficult subject?
Yes, it is a little difficult if you attempt to learn this subject without having attended any lectures and attempt plain self study for the same. You need to attend lectures, clear doubts and work on understanding this subject. You can score good marks here if you work hard as this is not a pure theory subject; it would be easier to score marks here as compared to probably a PMM or strategic management.
Do I need to join any Coaching Classes for this subject?
No, you do not need any extra help in this subject, apart from the knowledge you get while attending lectures. Be punctual and you don’t need much.
What is the Syllabus for this Subject?
National Income Analysis: National Income Calculations and their applications
– Business Fluctuations, features and causes.
- Balance of payment Analysis: Concept and causes of disequilibrium
– Devaluation and its impact on trade
– Mechanism of International Payments
– Flexible exchange rate systems.
- Policy Environment: Monetary and Fiscal policy
– Impact on business decision making – Trade Policies
– Role of World Trade Organisation.
- Globalisation: Gains and Problems
– Emerging regional trade blocks
– International capital flows (with special reference to India)
– Foreign Direct Investment
– Portfolio Management.
- Case Studies on Government policy and business environment relating to any one of the following countries: India, U.S.A., China and Japan.
How do I Study this Subject?
Economics is a little of sums and diagrams and a lot of theory, but the good part is that there is a little bit of the others so that you surely will not snooze away with the textbook open right in front of you. Eco- 2 will need 2 hours a day while you read the chapter –> get doubts cleared –> make notes –> learn answers. You can follow these steps for each chapter and take up your chapters in chronological order because if you skip the beginning you will not understand the later parts.
You need to make notes because this is not a subject where you will easily read and remember, what you need to do in order to understand this subject well enough is read each chapter and mark the points that you feel important. Make sure you mark the doubts you come across and get them cleared in lectures and this is why you do need to attend lectures regularly.
Once doubts are solved, you can start making notes, take up questions given at the back of the textbook and make notes for the same, do not make really elaborate notes because that is not required. You can prepare your notes by simply writing down the key points of each answer and making sure you draw the relevant diagrams for reference. These diagrams need to be practiced well and are very important from a marks point of view, do not avoid or ignore them.
The numerical sums too need practice and cannot be ignored or taken for granted. They are as essential to score well as much as writing down the answers and so put in efforts for the same a much as you can.
This subject is one of the core assets of a commerce student, economics and accountancy are two of those assets as they come in hand in many subjects, not just once so it gets difficult in the future from your academics and professional point of view if you ignore this subject in the initial stages of your studies.
Career In Economics?
If you do end up falling in love with Eco then making a career in the subject can be a good option. You will need to do your masters in the subject of course and then you can chart up a promising career in many fields. teaching is one good field for economics lovers because from high school levels this subject has been with us and good faculty members will always be a necessity. An economist is also welcome as a research specialist and analyst at think tanks or financial, political and environment related companies and organizations in the form of policy makes and advisors. With a lot of different branches of economic study available you have a lot of scope to apply economics to your preferred industry and pursue a career in the same. Financial economics is one such field that is quite booming today and is worth thinking about if finance and accountancy is your thing.
Popular career options for Economists can be in the following sectors:
1. Business, Banking, and Finance.
2. Economic Development
4. Federal Reserve Public Finance
7. International Trade
9. Marketing and Retail
10. Public Policy
11. Real Estate and Urban Planning
All the best for Eco-2! 🙂