Business economics

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Business economics is a field in applied economics which uses economic theory and quantitative methods to analyze business enterprises and the factors contributing to the diversity of organizational structures and the relationships of firms with labour, capital and product markets. [1] A professional focus of the journal Business Economics has been expressed as providing "practical information for people who apply economics in their jobs." [2]

Applied economics is the application of economic theory and econometrics in specific settings. As one of the two sets of fields of economics, it is typically characterized by the application of the core, i.e. economic theory and econometrics, to address practical issues in a range of fields including demographic economics, labour economics, business economics, industrial organization, agricultural economics, development economics, education economics, engineering economics, financial economics, health economics, monetary economics, public economics, and economic history.

Business Organization undertaking commercial, industrial, or professional activity

Business is the activity of making one's living or making money by producing or buying and selling products. Simply put, it is "any activity or enterprise entered into for profit. It does not mean it is a company, a corporation, partnership, or have any such formal organization, but it can range from a street peddler to General Motors."

In economics, capital consists of assets that can enhance one's power to perform economically useful work. For example, in a fundamental sense a stone or an arrow is capital for a caveman who can use it as a hunting instrument, while roads are capital for inhabitants of a city.

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Business economics is an integral part of traditional economics and is an extension of economic concepts to the real business situations. It is an applied science in the sense of a tool of managerial decision-making and forward planning by management. In other words, business economics is concerned with the application of economic theory to business management. Business economics is based on microeconomics in two categories: positive and normative.

Business economics focuses on the economic issues and problems related to business organization, management, and strategy. Issues and problems include: an explanation of why corporate firms emerge and exist; why they expand: horizontally, vertically and spacially; the role of entrepreneurs and entrepreneurship; the significance of organizational structure; the relationship of firms with employees, providers of capital, customers, and government; and interactions between firms and the business environment. [1]

Ambiguity in the use of term

The term 'business economics' is used in a variety of ways. Sometimes it is used as synonymously with industrial economics/industrial organisation, managerial economics, and economics for business. Still, there may be substantial differences in the usage of 'economics for business' and 'managerial economics' with the latter used more narrowly. One view of the distinctions between these would be that business economics is wider in its scope than industrial economics in that it would be concerned not only with "industry" but also businesses in the service sector. Economics for business looks at the major principles of economics but focuses on applying these economic principles to the real world of business. [3] Managerial economics is the application of economic methods in the managerial decision-making process. [4]

Managerial economics deals with the application of the economic concepts, theories, tools, and methodologies to solve practical problems in a business. In other words, managerial economics is the combination of economics theory and managerial theory. It helps the manager in decision-making and acts as a link between practice and theory. It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units.

Interpretations from various universities

Many universities offer courses in business economics and offer a range of interpretations as to the meaning of the word. [5] The Bachelor of Business Economics (BBE) Program at University of Delhi is designed to meet the growing need for an analytical and quantitative approach to problem solving in the changing corporate world by the application of the latest techniques evolved in the fields of economics and business. [6] The Autonomous University of Barcelona (UAB), the Universidad Pública de Navarra (UPNa) and the University of the Balearic Islands (UIB) developed an official Master of Science in Management, Organization and Business Economics focused on management and business topics to train professionals in the study of organizations, on a conceptual and quantitative basis. To achieve this, advanced analysis tools are used from the fields of Neoclassical economics, New institutional economics, Statistics, Econometrics and Operations research. This focus is complemented with contributing ideas and theories to develop the necessary instruments to facilitate the management of sophisticated and complex organizations. [7]

University of Delhi Central university located in New Delhi, India

The University of Delhi, informally known as Delhi University (DU), is a collegiate public central university, located in New Delhi, India. It was founded in 1922 by an Act of the Central Legislative Assembly. As a collegiate university, its main functions are divided between the academic departments of the university and affiliated colleges. Consisting of three colleges, two faculties, and 750 students at its founding, the University of Delhi has since become India's largest institution of higher learning and among the largest in the world. The university currently consists of 16 faculties and 86 departments distributed across its North and South campuses. It has 77 affiliated colleges and 5 other institutes with an enrollment of over 132,000 regular students and 261,000 non-formal students. The Vice-President of India serves as the University's chancellor.

Autonomous University of Barcelona public university in Catalonia, Spain

The Autonomous University of Barcelona, also known as UAB, is a public university mostly located in Cerdanyola del Vallès, near the city of Barcelona in Catalonia, Spain.

University of the Balearic Islands Spanish university

The University of the Balearic Islands is a Balearic Spanish university, founded in 1978 and located in Palma on the island of Majorca.

The program at Harvard University uses economic methods to analyze practical aspects of business, including business administration, management, and related fields of business economics. [8] . The Universidad del Desarrollo, in Chile follows on Harvard University definition, adding entrepreurnship as a field of business. The University of Miami defines business economics as involving the study of how we use our resources for the production, distribution, and consumption of goods and services. This requires business economists to analyze social institutions, banks, the stock market, the government and their relationships with labor negotiations, taxes, international trade, and urban and environmental issues. [9]

Harvard University Private research university in Cambridge, Massachusetts, United States

Harvard University is a private Ivy League research university in Cambridge, Massachusetts, with about 6,700 undergraduate students and about 15,250 postgraduate students. Established in 1636 and named for its first benefactor, clergyman John Harvard, Harvard is the United States' oldest institution of higher learning. Its history, influence, wealth, and academic reputation have made it one of the most prestigious universities in the world. It has often been cited as the world's top university by most publishers.

Business administration is administration of a business. It includes all aspects of overseeing and supervising business operations, as well as related fields which include accounting, finance, project management and marketing.

Universidad del Desarrollo Chilean private university

Universidad del Desarrollo is a Chilean private university. Its main campus is in Concepción, with a secondary campus in the same city, and two more in Santiago.

Courses at the University of Manchester interpret business economics to be concerned with the economic analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a business. This is done via an examination of the relationship between ownership, control and firm objectives; theories of the growth of the firm; the behavioural theory of the firm; theories of entrepreneurship; the factors that influence the structure, conduct and performance of business at the industry level. [10]

University of Manchester public research university in Manchester, England

The University of Manchester is a public research university in Manchester, England, formed in 2004 by the merger of the University of Manchester Institute of Science and Technology and the Victoria University of Manchester. The University of Manchester is a red brick university, a product of the civic university movement of the late 19th century.

The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market.

Italian universities borrow their concept of business economics from the tradition of Gino Zappa, for example a standard course [11] at the Politecnico di Milano involves studying corporate governance, accounting, investment analysis, budgeting and business strategy.

La Trobe University of Melbourne, Australia associates business economics with the process of demand, supply and equilibrium coordinating the behaviour of individuals and businesses in the market. Also, business economics extends to government policy, economic variables and international factors which influence business and competition.

See also

Notes

  1. 1 2 Moschandreas, Maria (2000). Business Economics, 2nd Edition, Thompson Learning, Description and chapter-preview links.
  2. National Association for Business Economics, Business Economics Archived November 11, 2011, at the Wayback Machine ®
  3. Sloman, J and Sutcliffe (2004) Economics for Business, Financial Times/ Prentice Hall; 3 edition
  4. • Jones, Trefor, 2004 Business Economics and Managerial Decision Making, Wiley. Description and chapter-preview links.
       • Wilkinson, Nick (2005). Managerial Economics: A Problem-Solving Approach, Cambridge University Press. Description and preview.
  5. http://www.uel.ac.uk/programmes/business/undergraduate/summary/businesseco.htm
  6. http://du.ac.in/du/index.php?page=business-economics-2
  7. UAB,UPNa, UIB - Master of Science (M.Sc.) in Management, Organization and Business Economics - MMOBE Program. Link
  8. http://www.gsas.harvard.edu/programs_of_study/business_economics_4.php
  9. "Archived copy". Archived from the original on 2009-07-25. Retrieved 2009-01-06.Cite uses deprecated parameter |deadurl= (help)CS1 maint: archived copy as title (link)
  10. "Archived copy". Archived from the original on 2008-12-24. Retrieved 2009-01-13.Cite uses deprecated parameter |deadurl= (help)CS1 maint: archived copy as title (link)
  11. https://www11.ceda.polimi.it/schedaincarico/schedaincarico/controller/scheda_pubblica/SchedaPublic.do?&evn_default=evento&c_classe=618079&__pj0=0&__pj1=6f3356db456e221b165cf3ee421a14ec

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