The module “Economics of International Business” is a core subject that provides students with essential knowledge to understand the global economic interactions that shape today’s interconnected world. In an international economic system characterized by the interdependence of markets and the rapid movement of capital, goods, services, and technology, economic activity is no longer confined to the domestic sphere. Instead, it is deeply embedded in a complex and dynamic international business environment. Understanding the economic fundamentals that govern this environment is therefore critical for decision-makers, strategists, and investors.
This module equips students with both conceptual and analytical tools to examine the economic dimensions of international business. It begins with a detailed exploration of the nature and importance of international business, shedding light on its strategic role and the economic rationale behind cross-border activities. It then focuses on the components and pillars of the international business environment, such as macroeconomic stability, legal and institutional frameworks, infrastructure quality, and a country’s overall investment climate.
A key part of the course examines the economic costs associated with enhancing a country’s investment attractiveness, including structural reforms and institutional development. This is balanced with a study of the expected returns and benefits of foreign direct investment (FDI), such as increased productivity, employment generation, technology transfer, and improved trade balances.
To strengthen students' analytical capacity, the module also introduces the key international indicators and benchmarks used to assess the ease of doing business, investment attractiveness, and global competitiveness. Special emphasis is placed on interpreting these indicators and understanding their implications. Furthermore, the module familiarizes students with the main international organizations and agencies that produce these evaluations, including the World Bank, the OECD, and UNCTAD.
Ultimately, this module aims to provide students with the tools necessary to analyze international business environments, understand the economic determinants influencing investor behavior, and evaluate national performance from an investment perspective. Particular attention is given to the Algerian context, which is undergoing extensive reforms to improve its business climate and position itself more competitively on the global investment map.