ECX5520 · Economics of global investment decisions

Overview

Government regulators, tax authorities and private firms routinely assess large-value project proposals where policy settings and negotiation strategies often drive the final investment decision. Investment is a key determinant of economic and social outcomes globally, with large-value investment decisions attracting significant attention from local, political and industry stakeholders. This reflects the tension between the desired return on capital, local economic and community benefits, government objectives, and uncertain project outcomes. This gives rise to a complex and nuanced investment decision making process that brings together knowledge of microeconomics (firm behaviour, game theory), macroeconomics, corporate finance, accounting and strategy. This unit is an applied course focusing on the (i) economic and financial drivers, (ii) industry and government objectives and (iii) strategic thinking that underpin large-value global investment decisions. The unit will highlight the inherent trade-offs, constraints, and short- and long-term outcomes that arise from the global investment process through hands-on applications. In particular, a team-based mock project proposal will be assessed from both government and firm perspectives to inform formal rounds of negotiations that mimic a real-world investment decision process.

Offerings

Assessment

The Handbook does not list a final examination among the assessment items. That is not a guarantee there is none.

Assessment details may change. Please refer to the assessment information in Moodle closer to the start of the teaching period.

Requisites

Learning outcomes

1. be able to outline and undertake the investment evaluation process from either a firm or government perspective
2. value a simplified project from multiple stakeholders' perspectives, where project outcomes are uncertain
3. define and evaluate both firm and government objectives, strategies, constraints and trade-offs
4. evaluate the likelihood of negotiated outcomes for firms and government stakeholders
5. identify the strengths and weaknesses of the investment decision process, using quantitative and qualitative frameworks.

Workload

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising a mixture of scheduled learning activities and independent study. Independent study may include associated readings, assessment and preparation for scheduled activities. You are expected to complete all pre-class activities prior to your scheduled class, and post-class activities should be completed after your scheduled class. Learning activities may include a combination of teacher directed, peer directed and online engagement activities.

Student experience, not official rules. Nothing here changes what the Handbook says.