Virtually all of the world's wealth was created within the last 200 years. Yet, most people in the world do not enjoy this wealth. Finally, the 21st century seems to offer the promise of lifting most of the world's poor out of poverty.
Lessons have been learned and policies have been implemented that may put most countries on the path to riches. These trends are giving rise to a new multi-centric economic order. But, in this new world, outsourcing jobs has created concerns of massive unemployment, pressure on natural resources has created concerns of skyrocketing prices, and financial crises in any corner of the world seem to be able to threaten stability everywhere. This is the world in which we live and conduct business.
The Global Markets and Institutions (GMI) course is devoted to understanding the role of markets and institutions in shaping national and international commerce. Markets and institutions facilitate global commerce by providing rules for interaction of large numbers of economic agents, and as well by imposing discipline in rewarding certain behavior over others. This course will rely heavily on the framework of macroeconomics, international trade, and international finance to understand the global marketplace.
During the first residency, the course covers the underlying reasons for the vast disparity in economic development around the world, and the relationship of growth and development to the quality of a country. An underlying purpose of the course is to familiarize you with some of the major trends and current issues in various specific countries around the world.
Some institutions analyzed in depth are the WTO, the IMF, World Bank, and Central Banks; other institutions (both formal and informal) that relate to doing business in specific regions (such as foreign direct investment). Instead of focusing on any single country, the course presents a balanced view that is useful for understanding trade and commerce in a multi-centric world.