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Social Sciences Studies

Technical Experience Interview
New answer on Jul 31, 2023
5 Answers
210 Views
Anonymous A asked on Jul 29, 2023

How do Economics and Management/International Management are related?

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Pedro
Expert
replied on Jul 29, 2023
Bain | Roland Berger | EY-Parthenon | Mentoring Approach | 30% off first 10 sessions in May| Market Sizing | DARDEN MBA

Economics and International Management are related in various ways, as they both deal with the study of economic systems and business activities with sometimes overlapping scopes and perspectives. A few examples on the topics I find most relevant:

Global Perspective: International Management focuses on the management of businesses and organizations that operate in a global context. It considers the challenges and opportunities of conducting business across borders, dealing with different cultures, legal systems, and economic environments. Economics, on the other hand, provides the theoretical and analytical framework to understand the global economy, international trade, foreign exchange rates, and the interactions between different countries' economic policies.

Trade and Finance: International trade is a significant aspect of both disciplines. Economics explores the theories of international trade, such as comparative advantage, and analyzes trade patterns and policies. International Management deals with the practical aspects of conducting international trade, including export-import processes, trade regulations, and managing cross-border transactions. Additionally, both fields study international finance, including foreign direct investment, capital flows, and currency exchange rates.

Macroeconomic Environment: For businesses operating internationally, understanding the macroeconomic environment of various countries is vital. Economic indicators such as inflation rates, GDP growth, and unemployment rates impact business operations and decision-making. International Management professionals need to incorporate economic insights into their strategic planning.

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Hagen
Expert
Content Creator
replied on Jul 30, 2023
#1 Bain coach | >95% success rate | interviewer for 8+ years | mentor and coach for 7+ years

Hi there,

I would be happy to share my thoughts on your question:

  • First of all, economics and management, while distinct fields, have areas of overlap and are intrinsically related. This is primarily because they both deal with business topics, although they do so from different angles. While this might be a highly simplified differentiation, economics focuses on macro-economic business topics (i.e., of countries, regions, or the global economy as a whole), while management focuses on micro-economic business topics (i.e., of singular companies).
  • Moreover, international management involves applying management principles in a global context. This involves understanding and dealing with diverse business cultures, trade laws, and economic practices across different countries.
  • Lastly, please feel free to provide some context to your question, so that I can provide a more focused answer.

If you would like a more detailed discussion on the topic, please don't hesitate to contact me directly.

Best,

Hagen

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Cristian
Expert
Content Creator
replied on Jul 31, 2023
#1 rated MBB & McKinsey Coach
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Andi
Expert
replied on Jul 30, 2023
BCG 1st & Final Round interviewer | Personalized prep with >95% success rate | 7yrs coaching | #1 for Experienced Hires

Hi there, 

While Pedro already gave a nice general overview, would be useful if could you share a bit more about the context and intent of the question. Will be able to advise more specifically then.

Thanks, Andi

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Ian
Expert
Content Creator
replied on Jul 30, 2023
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

Pedro gave a great answer here.

Please also remember that with wide-sweeping questions like these you won't be able to get a full answer from written text. Rather, you learn so much more by speaking to someone.

Are you asking in terms of your university major? A career choice? What type of books to read? Lots more context and discussion needed here!

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Pedro gave the best answer

Pedro

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