Business Administration: Political Envir of Business

Explore the rationale for government interaction with business. Analyze (1) business, and the broader society's demand for public policy, as well as (2) the political institutions that supply public policy in both domestic and international contexts. Prerequisites: ECON 1450 with a minimum grade of C-; Business Administration, Engineering Management, Computer Science & Information Systems major; Business Administration minor.

BSAD, CSIS, EMGT majors, 2 BUS co-majors, and BSAD minors only. Prereqs enforced by the system: ECON 1450 with a minimum grade of C-. PACE students by permission and override.

Most courses in the Grossman School of Business focus on firm interactions with customers, suppliers, partners, rivals, etc. in the form of mutually beneficial exchange in the free market. This course takes a broader perspective and addresses issues in the social, political and legal environment (the nonmarket environment). Our focus will be to explore interactions among interest groups (e.g., firms and NGOs) outside of the free market especially within the public policy making process of government. We will explore interactions among interest groups, legislatures, regulatory agencies, at both a domestic and international level. Within the context of these interactions we will explore issues ranging from environmental regulation to political risk. We will explore the benefits of free market exchange while also discussing what is referred to as "market failures." Within the context of markets, we'll discuss the role of government and public policy to facilitate exchange, and we will also discuss what is referred to as "government failures." We'll develop a model of government decision making and contrast this to decision making in the free market. The goal is to gain a general understanding of the public policy process and the factors that affect policy outcomes. While much of this discussion will focus on the public policy institutions within the United States, we apply the same general framework to understand decision making in international settings as well. Our model of government decision making will help to develop a framework interest groups (firms & NGOs) may use to manage issues within the nonmarket environment in which they operate. Even in a predominantly market based economy, decisions interact with the nonmarket environment which affects an interest groups ability to meet its overall objectives (e.g., firm profitability, NGO mission). In this way, nonmarket strategy is an important and fundamental part of the strategy of interest groups. Throughout the course we will apply the general concepts to address a number of specific policy issues (e.g., environmental regulation, trade, poverty) in a variety of nonmarket environments (e.g., state, national and international).

Combination of case study papers, presentations and exams