BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, PILANI

INSTRUCTION DIVISION
FIRST SEMESTER 2012-2013
COURSE HANDOUT (PART-II)
Date: 03/08/2012
In addition to Part-I (General Handout for all courses appended to the timetable), this portion gives
further specific details regarding the course.
Course No.

: ECON F214

Course Title

: Economic Environment of Business

Instructor-in-charge

: Dr. Meera Lal

1. Scope and Objective:

Business enterprises are micro units within an economic environment that represents the macro. The
economic environment is essentially the given within which firms and their managements must operate.
The objective of this course is to unravel all those economic factors which are external to and beyond the
control of individual business enterprises and their managements, with particular focus on the Indian
context. Thus, the course aims to (1) Create familiarity with economic environment concepts and
indicators, economic policies and economic regulation (2) Evolve an ability to analyze and anticipate
changes in economic environment and, (3)

Enable students to take more effective business

decisions by being responsive to the external economic environment.

2. Text Book:
Saleem, Shaikh., Business Environment, Pearson Publishers, India, 2nd Edition 2010.
3. Reference Books:
Fernando, A.C., Business Environment, Pearson Publishers, India, 2011.
3. Course Plan:

No. of
Lectures
1-2

3-13

14-15

16-17

Learning Objectives
Business and its
Environment

Topics to be Covered

Meaning, Characteristics and Objectives, Features of

Modern Business, Economic and Financial
Environment, Non-economic Environment
Basic Parameters of National
Income-Concepts
and
Measurement,
Indian Economy
Economic Growth, Income Distribution and Inequality,
Inflation, Population, Poverty, Unemployment, Human
Development,
Natural
resource
environment,
technology
Economic
Systems Capitalism, Socialism, Mixed Economy, Indian
and
Business economy
Environment
Planning in India
Objectives and Emergence of planning, Planning

Reference
Ch. 3 (ref)
Chapter 1 (txt)
Ch.
8,11,12,13,14
(txt)
Ch.1,2,4,5,6,7,
27 (ref)
Ch. 9, 10, 11
(ref)
Ch. 2 (txt)

18-20

21-23

24-25
26-28

2-30
31

32-34

35-40

Commission, National Development Council, Five Year Ch. 18,19 (ref)

Plans, Liberalisation and Planning
Liberalisation
and Meaning and key features, New Economic Policy, FDI, Ch.
Globalisation
MNCs, Privatisation
22,24,25,26
(txt), Ch. 38
(ref)
Industrial Policy
Role of industry in economic development, industrial Ch. 9, 79, 109
policy, industrial licensing, MRTP Act
(txt). Ch 20
(ref)
Fiscal Policy
Direct and indirect taxes, subsidies. Concept, objective, Ch.5 (txt). Ch
techniques, advantages and evaluation of fiscal policy
13 (ref)
Monetary Policy
Financial systems- money capital and stck markets, Ch.5 (txt). Ch.
SEBI. Concept, meaning, objectives of monetary policy, 13 (ref)
CRR. SLR, regulation of money supply, RBI
Trade and EXIM Features and phases of Indias trade policy, reforms, Ch. 10, 27 (txt)
Policy
BOP, current and capital accounts, FERA, FEMA
Ch. 14 (ref)
SEZs
Concept, meaning, history, definition and features of Ch. 28 (txt)
SEZs. SEZ policy of India, export promotion, global
view
Business and Society
Definition, relevance and importance of business ethics, Ch. 19, 20, 21
values in business, impact of globalisation on business (txt). Ch 23,
ethics, business ethics in India. Need, best practices, 24, 25, 26 (ref)
code of conduct, regulatory framework for corporate
governance. Consumer and investor protection
International Business GATT, GATS, IMF, World Bank, WTO, ADB, Ch.29, 30 (txt)
Environment
UNCTAD
Ch. 48, 49, 50
(ref)

4. Evaluation scheme:
Component
Test 1

Duration
60 mts

Weight age (%)

20

Date and Time

25/09/2012

Remarks
CB

2pm to 3pm
Test 2

60 mts

20

06/11/2012

OB

2pm to 3pm
Surprise
Quizzes Surprise Test
Assignments,
Presentations
Presentations
Comprehensive
3 hrs
Examination

10
10
40

CB

12/12/2012 AN

CB

5. Chamber Consolation Hour: To be announced in the class

6. Notices: Notices, if any, would be put on LTC Notice Board
7. Make-up Policy: Make-up will be granted only on genuine grounds and if prior permission is taken.
No application will be accepted in the Exam Hall.

Instructor-in-Charge
ECON F214