Business economics

Business economics is a field in applied economics which uses economic theory and quantitative methods
to analyze business enterprises and the factors contributing to the diversity of organizational structures and
the relationships of firms with labour, capital and product markets.[1] A professional focus of the journal
Business Economics has been expressed as providing "practical information for people who apply
economics in their jobs."[2]

Business economics is an integral part of traditional economics and is an extension of economic concepts to
the real business situations. It is an applied science in the sense of a tool of managerial decision-making and
forward planning by management. In other words, business economics is concerned with the application of
economic theory to business management. Business economics is based on microeconomics in two
categories: positive and normative.

Business economics focuses on the economic issues and problems related to business organization,
management, and strategy. Issues and problems include: an explanation of why corporate firms emerge and
exist; why they expand: horizontally, vertically and spacially; the role of entrepreneurs and
entrepreneurship; the significance of organizational structure; the relationship of firms with employees,
providers of capital, customers, and government; and interactions between firms and the business
environment.[1]

Contents
Ambiguity in the use of term
Interpretations from various universities
See also
Notes
Journals
External links

Ambiguity in the use of term

The term 'business economics' is used in a variety of ways. Sometimes it is used as synonymously with
industrial economics/industrial organisation, managerial economics, and economics for business. Still, there
may be substantial differences in the usage of 'economics for business' and 'managerial economics' with the
latter used more narrowly. One view of the distinctions between these would be that business economics is
wider in its scope than industrial economics in that it would be concerned not only with "industry" but also
businesses in the service sector. Economics for business looks at the major principles of economics but
focuses on applying these economic principles to the real world of business.[3] Managerial economics is the
application of economic methods in the managerial decision-making process.[4]

Interpretations from various universities

Many universities offer courses in business economics and offer a range of interpretations as to the meaning
of the word.[5] The Bachelor of Business Economics (BBE) Program at University of Delhi is designed to
meet the growing need for an analytical and quantitative approach to problem solving in the changing
corporate world by the application of the latest techniques evolved in the fields of economics and
business.[6] The Autonomous University of Barcelona (UAB), the Universidad Pública de Navarra (UPNa)
and the University of the Balearic Islands (UIB) developed an official Master of Science in Management,
Organization and Business Economics focused on management and business topics to train professionals in
the study of organizations, on a conceptual and quantitative basis. To achieve this, advanced analysis tools
are used from the fields of Neoclassical economics, New institutional economics, Statistics, Econometrics
and Operations research. This focus is complemented with contributing ideas and theories to develop the
necessary instruments to facilitate the management of sophisticated and complex organizations.[7]

The program at Harvard University uses economic methods to analyze practical aspects of business,
including business administration, management, and related fields of business economics.[8]. The
Universidad del Desarrollo, in Chile follows on Harvard University definition, adding entrepreurnship as a
field of business. The University of Miami defines business economics as involving the study of how we use
our resources for the production, distribution, and consumption of goods and services. This requires
business economists to analyze social institutions, banks, the stock market, the government and their
relationships with labor negotiations, taxes, international trade, and urban and environmental issues.[9]

Courses at the University of Manchester interpret business economics to be concerned with the economic
analysis of how businesses contribute to welfare of society rather than on the welfare of an individual or a
business. This is done via an examination of the relationship between ownership, control and firm
objectives; theories of the growth of the firm; the behavioural theory of the firm; theories of
entrepreneurship; the factors that influence the structure, conduct and performance of business at the
industry level.[10]

Italian universities borrow their concept of business economics from the tradition of Gino Zappa, for
example a standard course[11] at the Politecnico di Milano involves studying corporate governance,
accounting, investment analysis, budgeting and business strategy.

La Trobe University of Melbourne, Australia associates business economics with the process of demand,
supply and equilibrium coordinating the behaviour of individuals and businesses in the market. Also,
business economics extends to government policy, economic variables and international factors which
influence business and competition.

See also
Industrial organisation
Business studies

Notes
1. Moschandreas, Maria (2000). Business Economics, 2nd Edition, Thompson Learning,
Description (https://books.google.com/books?id=ncVfjhTULyAC&printsec=find&pg=PA410#v=
onepage&q&f=false) and chapter-preview links (https://books.google.com/books?id=ncVfjhTUL
yAC&printsec=find&pg=PR5#v=onepage&q&f=false).
2. National Association for Business Economics, (http://www.nabe.com/busecon.htm)Business
Economics (http://www.nabe.com/busecon.htm) Archived (https://web.archive.org/web/201111
11082746/http://www.nabe.com/busecon.htm) November 11, 2011, at the Wayback Machine®
 3. Sloman, J and Sutcliffe (2004) Economics for Business, Financial Times/ Prentice Hall; 3
edition
4. • Jones, Trefor, 2004 Business Economics and Managerial Decision Making, Wiley.
Description (http://www.wiley.com/WileyCDA/WileyTitle/productCd-EHEP000988.html) and
chapter-preview links (https://books.google.com/books?id=qr7TORfhBwQC&printsec=find&pg
=PR7#v=onepage&q&f=false).
• Wilkinson, Nick (2005). Managerial Economics: A Problem-Solving Approach, Cambridge
University Press. Description (http://www.cambridge.org/gb/knowledge/isbn/item1170271/?site
_locale=en_GB) and preview. (https://books.google.com/books?id=O-Fv7B4J-6EC&printsec=fi
nd&pg=PR5#v=onepage&q&f=false)
5. http://www.uel.ac.uk/programmes/business/undergraduate/summary/businesseco.htm
6. http://du.ac.in/du/index.php?page=business-economics-2
7. UAB,UPNa, UIB - Master of Science (M.Sc.) in Management, Organization and Business
Economics - MMOBE Program. Link (http://pagines.uab.cat/mmobe/)
8. http://www.gsas.harvard.edu/programs_of_study/business_economics_4.php
9. "Archived copy" (https://web.archive.org/web/20090725091346/http://www.miami.muohio.edu/
academics/majorsminors/majors/businesseconomics.cfm). Archived from the original (http://w
ww.miami.muohio.edu/academics/majorsminors/majors/businesseconomics.cfm) on 2009-07-
25. Retrieved 2009-01-06.
10. "Archived copy" (https://web.archive.org/web/20081224053759/http://www.socialsciences.man
chester.ac.uk/undergraduate/courses/modules/modulelist.html?department=3&newcode=ECO
N2). Archived from the original (http://www.socialsciences.manchester.ac.uk/undergraduate/co
urses/modules/modulelist.html?department%3D3%26newcode%3DECON2) on 2008-12-24.
Retrieved 2009-01-13.
11. https://www11.ceda.polimi.it/schedaincarico/schedaincarico/controller/scheda_pubblica/Scheda
&evn_default=evento&c_classe=618079&__pj0=0&__pj1=6f3356db456e221b165cf3ee421a14

Journals
Business Economics: Description (https://web.archive.org/web/20111111082746/http://www.na
be.com/busecon.htm) and archived article-abstract links (https://web.archive.org/web/2008122
2000712/http://www.nabe.com/pubs.htm)

External links
National Association for Business Economics (NABE, United States): Homepage (http://www.n
abe.com/)
Canadian Association for Business Economics (CABE) (http://www.cabe.ca)
Australian Business Economists (https://web.archive.org/web/20120423013601/http://www.ab
e.org.au/)
Directory of Business Economics and Finance links with relevant news (http://www.businessec
onomics.com/)

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