C o p y rig h t R eserv ed

UNIVERSITY OF DELJffi

Scheme of Admission,

Scheme of Examination

and

Course Structure

for

B.A. (Honours) Business Economics

Applicable to students seeking admission to the

B.A. (Honours) Business Economics course
in the academic year 2010-11 and later.
 INDEX

Preamble 3

Course S t r u c t u r e ......... ................................................................................. 4

Revised Ordinance 6

1. S chem e o f A dm ission 6
1.1 Eligibility Conditions 6
1.2 Selection Process 7
1.3 Fees 8

2. S chem e o f E xam inatio n and Rules o f Promotion

2.1 Scheme o f Examination 10
2.2 Promotion Rules . 14

3. C om parative Statem ent 16

4. Paper Structure and R eadings

101: M icroeconom ics - I 18
102: Statistics for Business Econom ics 19
l A r H ' - . j c : Qf* — ’ ' ~ ' r 9- * r r o ’TnfTnrr

104: B usiness C om m unication 22

201: M icroeconom ics - I I 24
202: M athem atics for B usiness Econom ics 25
203: Legal A spects o f Business 26
204: M arketing M anagem ent 28
301: M acroeconom i cs - 1 30
302: Industrial E conom ics 31
303: B usiness Finance 32
304: Basic E conom etrics 34
401: M acroeconom ics - II 35
402: O rganisational B ehaviour 36
403: Q uantitative T echniques for M anagem ent 38
404: Indian Financial System 40
501: Indian E conom y 42
502: C om putational T echniques for Business Econom ics 44
511: Elective P ap er FI - Investm ent M anagem ent 45
521: Elective P aper M l - C onsum er Behaviour 47
531: Elective P aper Q1 - A dvanced Econom etrics 49
541: Elective Paper El - International Econom ics 50
551: Elective Paper PI - Project M anagem ent 52
601: Environm ent Econom ics 53
602: Business Strategy & Ethics 55
611: Elective P aper F2 - International Finance M anagem ent 57
621: Elective Paper M2 - A dvertisem ent & Branding 58
631: Elective Paper 0 2 - Advanced Mathematical T echniques 59
641: Elective Paper E2 - Econom ic Growth & Policy 60
651: Elective Paper P2 - Entrepreneurship and Family B usiness 61
 PREAMBLE

T he u n d e rly in g ph ilo so p h y of the B.A. (H onours) B usiness E conom ics

co u rse is to d ev e lo p theoretical a n d analytical skills c f th e s tu d e n ts so th a t
th ey m ay be abso rbed in the corporate w o rld o r be able to p u rs u e h ig h e r
stu d ie s a t the M aster's level in Business Econom ics a n d Econom ics. In th e
rapidly changin g globalised m ark e t scenario, th e n e e d w a s felt to e q u ip
s tu d e n ts w ith the capability to u n d e rs ta n d a n d h a n d le the d y n a m ic of
econom ics a n d the b usin ess w orld.

In o rd e r to achieve the above-m entioned objectives, a c o m p re h e n siv e

re v ise d syllabus com prising of topics relating to econom ics, q u a n tita tiv e
te c h n iq u e s a n d b u siness hav e been includ ed in the three-year, six-
sem este r m o d u le, giving w id e r coverage to the course contents, b e tte r
o rg a n isa tio n to enable easier assim ilation of the sam e b y the stu d en ts,
a n d a m o re professional tou ch to the course.

T h e p a p e rs h av e been red esig n ed to include m o re recent chang es a n d

d e v e lo p m e n ts in the concerned subjects. T he p a p e rs in c o m p u te r
fu n d a m e n ta ls a n d applications have been re d esig n ed to in tro d u ce the
s tu d e n t to packag es req uired for statistical analysis a n d to enable the
s tu d e n t to im p le m en t the techniques th ro u g h co m p u ters, th u s
s u p p le m e n tin g the q u an titativ e papers. The core eco no m ics p ap e rs h av e
b e e n ra tio n a liz ed in their stru ctu re a n d sequencing w h e re in a b ro a d idea
of m icroeconom ic a n d m acroeconom ic concepts a n d theories is
in tro d u c e d in the first a n d second sem esters. The sam e is follow ed by a
m o re d e ta ile d a n d in -d ep th k no w ledg e of th e subject in the third a n d
fo urth sem esters. T here has been a substantial incroase in the q u an titativ e
te c h n iq u e s co m p o n e n t of th e course to eq u ip s tu d en ts v/ith the essential
tools for business a n d econom ic analysis. In this re g ard Econom etrics a n d
O p e ra tio n s R esearch h av e been introduced as essential papers. The
course co ntin ues to expose stu d en ts to the areas of finance, m ark e tin g
a n d th e legal stru ctu re w ith in which businesses operate. T hu s a fine
b ala n ce h a s b e e n m ain tain ed b etw e en the econom ic th e o ry a n d practical
b u s in e s s co m p o n en ts.

Five o p tio n al g ro u p s in finance, economics, q u an titativ e techniques,

m a rk e tin g a n d project m an a g em en t a n d e n tre p re n e u rs h ip p ro v id e the
s tu d e n ts a w id e array of areas in w hich to specialize. T hese sh o u ld help
the s tu d e n t choose the area th a t are best suited to their interest a n d skill.

3
 Course Structure

S e m e s te r P a p e r N u m b e r a n d T itle
101: M icroeconom ics - 1
102: Statistics for Business Econom ics
I.
103: F u n d am en tals of Business & A ccounting
104: Business C o m m u n ic atio n

201: M icroeconom ics - II

202: M ath em atics for Business Econom ics
II.
203: Legal A spects cf Business
204: M ark eting M an ag em en t

301: M acroeconom ics - 1

302: In d u strial Economics
III.
303: B usiness Finance
304: Basic Econom etrics
i
! 401: M acroeconom ics - II
i 402: O rganisational B ehaviour
IV.
403: Q u an titativ e t echniques for M an a g em en t
404: In d ia n Financial System

501: In d ia n Econom y
502: C o m p u tatio n al T echniques for Business Econom ics
511: Elective P ap er FI - Inv estm ent M an a g em en t
V. 521: Elective P ap er M l - C o n su m e r B eh aviou r
531: Elective P aper Q l - A d v a n ced Econometrics'
541: Elective P aper El - International Economics
551: Elective P ap er PI - Project M an a g em en t

601: E nv iro n m en t Economics

602: B usiness Strategy & Ethics
611: Elective P aper F2 - International Finance M a n a g e m e n t
VI. 621: Elective P ap er M2 - A d v e rtise m en t & B ran ding
631: Elective P aper Q2 - A d v a n ced M athem atical Techniques
641: Elective P aper E2 - Economic G ro w th & Policy
651: Elective P ap er P2 - E n tre p ren e u rsh ip a n d Fam ily Business

For th e elective p a p e rs in th e Vth a n d V lth sem esters, stu d e n ts will be req uired to
o p t for tw o g ro u p s from a m o n g the five groups: Finance (F), Econom ics (E), Project
M a n a g e m e n t a n d E n tre p ren e u rsh ip (P), M ark etin g (M) and Q u a n titativ e Techniques
(Q). For each chosen g ro u p , stu d en ts will be req uired to enrol for the first p a p e r in
the V th sem este r a n d the second p ap e r in the V lth sem ester. The g ro u p s an d the
p a p e rs are as follows:

4
G ro u p F: Finance:
FI: In v estm en t M an a g em en t - P a p e r No. 511
F2: International Finance M a n a g e m e n t - P aper N o. 611

G ro u p M: M arketing:
M l: C o n su m e r B ehavio ur - P a p e r No. 521
M2: A d v e rtise m en t & B ran d - P a p e r No. 621

G ro u p O: Q u an titativ e Techniques:
Q I: A d v a n c e d Econom etrics - P a p e r N o. 531
Q2: A d v a n ced M athem atical Techniques - P aper No. 631

G ro u p E: Economics:
El: Intern atio nal Econom ics - P a p e r No. 541
E2: Econom ic G ro w th & Policy - P a p e r No. 641

G ro u p P: Project M an a g e m e n t fc E n tre p ren e u rsh ip :

P I: Project M a n a g e m e n t - P ap er No. 551
P2: E n tre p re n e u rsh ip a n d Fam ily Business - P ap er No. 651
 R e v is e d O r d in a n c e fo r B .A .(H ons .) B u s i n e s s E c o n o m ic s

T he B.A. (H ons.) B usiness Econom ics shall be a three-year, full-tim e H o n o u rs D eg ree

Course, to be ta u g h t in six sem esters, viz., sem ester I, II, III, IV, V a n d VI.

Scheme of Admission

C a n d id a te s w h o hav e passed Class XII exam ination of the CBSE or any o th er

ex a m in a tio n co n sid ered eq u iv a le n t by the U niversity of Delhi shall be eligible for
takin g th e joint entra n ce test for ad m issio n to the B.A. (H ons.) Business Econom ics
course subject to the eligibility conditions re qu ired and the a d m issio n p ro c e d u re to
be laid d o w n by the U n iv ersity from tim e to time.

E l ig ib ilit y C o n d i t io n s for S e e k i n g A d m i s s i o n

(a) The c a n d id a te s h o u ld h av e passed Senior Secondary School E x am in atio n (10 +2)

of CBSE o r any o th e r ex am in ation considered eq u iv a le n t by th e U n iversity of
Delhi.
(b) T he c a n d id a te s h o u ld h av e secured an ag greg ate of at least 60% m ark s in h is/h er
XII class ex am in atio n (55% for SC, ST, C W a n d PC categories) in fo u r p a p e rs
in c lu d in g English and M athem atics. The other tw o p a p e rs are to be s e le ^ c d from
the follo w ing list: A ccountancy, Biology, Biotechnology, B usiness S tudies,
C hem istry, C om m erce, C o m p u te r Science, Economics, E n tre p ren e u rsh ip ,
G e o g rap h y , History, Philosophy, Physics, Political Science, Psychology a n d
Sociology.
(c) The c a n d id a te s h o u ld h av e obtained pass m ark in each of the fou r p a p e rs
co n sid ered for c o m p u tin g the agg regate in the above m en tio n ed subjects.
(d) T he c a n d id a te seeking adm ission to the B.A. (H onours) B usiness Econom ics
course m u s t p ro v id e th e confirm ed result of th e qu alifyin g ex a m in a tio n a n d
m ark s o b tain ed th erein w ith in one w eek of the a p p e a rin g in the joint en tra n ce
test.
(e) T h e m a rk s h e e t of th e qualifying ex am in ation a n d the reserved category
certificates of OBC (of C entral List & n o n cream y layer), SC, ST, PC, a n d C W , as
applicable, in the n a m e of the candidate, m u s t be p ro d u c e d o n the d a y of
counselling.
(g) The c a n d id a te s sec u rin g co m p a rtm e n t in the qualifying e x a m in a tio n in a
p a rtic u la r y e a r shall n o t be con sidered for adm issio n in th a t year.
(h) Foreign nation als seeking a d m issio n to B.A.(Hons) Business Econom ics co u rse
a g a in st th e prescribed qu o ta of seats ea rm ark e d for them , shall h a v e to a p p ly
th ro u g h the Foreign S tu d e n ts A dvisor, c/o Faculty of M a n a g e m e n t S tudies,
U niversity of Delhi, Delhi - 110007 and are ex em p ted from the w ritte n
exam ination .
(j) Those foreign stu d e n ts w ho have acquired their m in im u m qualification for
a d m issio n from a n y In d ian Board, in India hav e to a p p ly directly as a G enera!
categorv can didate. T hey are required to a p p e a r for the joint en tran ce test like
general
O category
O j c a n d id a te s an d follow the sam e selection iprocess
i asi aoolicab le

6
 to th e g eneral category an d in a d d itio n fill up the foreign s tu d e n t a p p lic a tio n
form of FSR office (d o w n lo a d ab le from:
h ttp ://w w w .d u .a c .in /fo rm s/fo re ig n stu d e n tsl.p d f). All a d m issio n of foreign
s tu d e n ts are ch an n eled th ro u g h th e Foreign S tudents R egistry (FSR) office of
U niversity of Delhi.

S e le c tio n P r o c e ss

I. W ritte n Jo in t E ntrance Test

The U niversity of D elhi will hold a Joint Entrance Test for the three courses B.A.
(Hons.) Business Economics, BBS a n d BFIA. A pplicants shall be called fo r a n
objective type, m u ltip le choice test, w h ic h shall be held a t Delhi a n d o th e r centres,
w h e re feasible, a n d as specified b y the Faculty of A p p lied Social Sciences a n d
H um anities.

The w ritte n ex am in atio n is designed to test the a p titu d e of th e ca n d id ates to p u rs u e

the courses B.A. (H onours) Business Economics, BBS a n d BFIA. T here is no
prescribed syllabus or form at for the en trance exam ination. The fo llo w in g areas h a v e
been u su ally included in the entrance exam in ation in the past.
Q u an titativ e A bility (Based o n M athem atics u p to class XII or its equ iv alent)
R easoning a n d A nalytical A bility
G eneral English
Business a n d General A w a ren e ss

The c a n d id ate will b e required to a tte m p t 120 questions in 120 m inutes. Each correct
an sw e r will get a score of plu s 3 m arks, each w ro n g answ er will g et a score of m in u s
1 m a rk a n d a q u estio n n o t an sw ered w ill g et a score of 0 m arks. M ark in g of m u ltip le
answ ers for one q u e stio n si iall be tre a te d as w ro n g answer.

The te s t shall be o f tw o h o u r d u ia tio n , extra tim e w ill be giv en to the ca n d id ate for
filling u p details o n test booklet a n d a n s w e r sheet, m arking attendance, verification
of can d id ates' do cu m en ts, distribution, a n d collection of test m aterial etc.

The schem e of ex am in atio n m ay b e ch an ged o n the reco m m en d atio n of the

adm issio n com m ittee.

II. F in a l selec tio n fo r th e course

The final selection of all can didates shall be b ased on the score co m p u te d by giving
equal w e ig h ta g e to the p erform an ce in Class XII exam ination and the p erform an ce in
the joint entrance test. The result d ec lare d shall com prise of the final score of the
can d id ate a n d th e ra n k secured b y th e cand idate in the category to w hich the
can did ate belongs.

III. C o u n s e llin g a n d A d m is s io n o f c a n d id a te s fo r all courses

The can did ates shall be allotted the respective colleges as p e r th eir m erit and their
o rd er of preference a t the tim e of counselling d u rin g the relevant counselling session.
C a n d id a te s offered ad m issio n are re q u ired dep osit th e fees d u r in g th e tim e
allocated alo n g w ith their d o cu m e n ts at th e allotted college, failing w h ic h the
c a n d id a tu re will b e cancelled.
C a n d id a te s w h o d o n o t take adm issio n d u rin g the stip u lated tim e lose the rig h t of
a d m issio n to the course. C a n d id a te s n o 1' p resen t w hsr. called to th e cou nselling will
not be e n te rtain ed later.
A t th e second a n d th ird counselling, a d m itte d cand idates will b e p e rm itte d n change
of college subject to availability of seats. To avail of any change to a p re fe rre d college,
the c a n d id a te s h o u ld h av e necessarily d ep o sited fees a n d fulfilled th e rem ain in g
ad m issio n form alities w ith in the allocated tim e at their allotted coliege, failing w hich
the c a n d id a te loses right to ad m issio n as well as a rig h t to exercise any choice of
college later.
R ight to exercise choice for a d m issio n a n d to avail the ch an ge of p reference for
college will b e offered to only those ca n d id ates w h o are p re sen t o n all the d a y s of
cou nselling specified for them.
In case the c a n d id a te is u n ab le to be p resen t o n the d ay of coun sellin g a n a u th o riz e d
re p rese n ta tiv e of th e ca n d id ate can exercise the preference for college a n d m e e t o th er
a d m issio n re q u irem en ts. A n application to this effect sign ed b y the c a n d id a te sh o u ld
be s u b m itte d to th e a d m issio n com m ittee.

F e e s for th e C o u r s e

A course fee of Rs. 12,000 per a n n u m shall b e charged to each s tu d e n t e n ro lle d in the
course. In ad d itio n , s tu d e n ts w o u ld be req u ired to pay the fee as a p p lica b le to the
B.A.(Hons.) B usiness Econom ics course at each college.

T he colleges shall m a in ta in a separate fund, co m prising of th e course fee a n d any

a d d itio n a l fee c h a rg ed to the s tu d e n ts of B.A.(Hons.) Business E conom ics b y the
college. T he m o n ey available in the fu n d shall b e used for the follo w ing p u rp o se s,
after a p p ro v a l b y th e B usiness Econom ics teachers com m ittee a t each college:

1. O rg a n isin g of teaching, g u est teaching a n d special lectures for th e course,

w h e re necessarv;
2. O rg a n isin g of sem inars, sym posia, w o rk sh o p s, orientation p ro g r a m m e s for
s tu d e n ts a n d teachers;
3. O rg a n isin g of indu strial/field visits, b u sin ess interaction, s u m m e r tra in in g and
placem ents;
4. O rg a n isin g of s tu d e n t presentations, project pre p ara tio n and b u sin ess/rese arc h
training;
5. O rg a n isin g of ex tra-cu rricular activities for stu d en ts to en h an ce te a m -b u ild in g
a n d inter-college interaction;
6. P rep a ratio n a n d p u rc h ase of stu d y m aterial and its copying for d is trib u tio n to
stu d en ts;
7. C rea tio n an d m ain ten a n ce of a d e p a rtm e n t library;
S. C reation of d e p a rm e n t diary an d any su ch prom otional m aterial of the course
for use b y the stu den ts;
9. P re p a ra tio n a n d p u b lish in g of a s tu d e n t m ag azin e/jo u ral/n ew sp a p er;
10. P urch a se of eq u ip m e n t to enable any of the above;
11. C reatio n of physical infrastructure to enable any of the above;
12. In stitu tio n of freeships a n d /o r scholarships for n e e d y stud en ts;
13. T ravel expenses for teachers required to u n d e rta k e w o rk for the co u rse a n d
travel expenses a n d registration fee for p articipating in sem in ars a n d o th e r
a cad em ic activities b y teachers involved in the teaching of the course;
14. A n y o th e r e x p e n d itu re considered ap p ro p ria te for the p ro p e r c o n d u c t of the
course a n d for d ev e lo p m e n t of the stud ents, w ith the ap p ro v a l of the H e a d ,
D e p a rtm e n t of Business Economics, U niversity of D elhi S ou th C a m p u s.

9
 Scheme of Examination and Rules of Promotion

S c h e m e o f E x a m in a tio n

1. B .A .(H onours) Business Economics shall be a th ree-y ear full-tim e h o n o u rs d e g re e

course., to be ta u g h t in six sem esters, viz., sem este r I, II, III, IV, V a n d VI. There
w ill b e 24 p ap e rs in all, ta u g h t o v er the six sem esters. Four p a p e r s are to be
ta u g h t in each sem ester. S tu dents are req u ired to s tu d y 20 c o m p u ls o ry p a p e rs
a n d 4 p a p e rs in electives d u rin g the course of th ree years.

2. In V & VI sem ester elective pap ers are offered in Finance, M arketing , Econom ics,
Q u a n tita tiv e T echniques a n d Project M a n a g e m e n t & E n tre p re n e u rs h ip areas.
S tu d e n ts are re q u ired to choose 2 elective stream s (each strea m co m p risin g tw o
pap ers). P a p e r (1) of each elective stream shall b e ta u g h t in se m e ste r V a n d p a p e r
(2) o f the elective s tre a m will be ta u g h t in S em ester VI. Elective s tre a m s offered in
a sem este r w o u ld d e p e n d u p o n the n u m b e r of stu d e n ts in terested in en ro llin g for
each specialization. The specialization g ro u p s offered will be the d isc re tio n of the
p a rtic u la r college.

3. For each th eo ry pap er, e a ch week, 4 Lectures of 55 m in u te s each a n d 1 tu to rial of

55 m in u te s each for e a c h batch of 8-10 stu d e n ts w o u ld be co n d u c te d . For the
c o m p u te r p a p e r re q u irin g interface w ith c o m p u te rs 3 laboratory' classes of 110
m in u te s each w o u ld be h eld for each batch of 25-30 studen ts.

4. M e d iu m o f teaching will b e English alone.

5. T each ing m eth o d o lo g y w o u ld include Lectures, C ase Studies, B usiness Games,

S em inars & Project W ork. As com puter* h a v e e n te re d e v e ry w a lk of life,
w h e re v e r applicab le relevani softw ares w o u ld b e in teg rated in to th e course.
In d u s try Interaction w o u ld be th ro u g h G u e st Lectures / S em in ars / Projects /
In d u stria l tours.

6. T h e D e p a rtm e n t of B usiness Economics shall con vene a m e e tin g of teachers for

each p a p e r of B.A. (H ons.) Business Econom ics b efo re the c o m m e n c e m e n t of th e
ac ad em ic sem este r to incorporate n ew s tu d y m aterial a n d d iscu ss th e d etailed
topics a n d th e ir w e ig h ta g e in the paper.

7. N o c a n d id a te shall be considered to hav e p u rs u e d a reg ular c o u rs e of s tu d y

u n less h e/sh e is certified by the college au thorities to hav e a tte n d e d a t least two
th ird s of the total n u m b e r of lectures, tutorials, practicals, s e m in a rs a n d case
d iscu ssio n s etc., c o n d u c ted in each sem ester d u rin g the stu d e n t's co u rse of study.

S. All s tu d e n ts shall h av e to un d ertak e s u m m e r train in g for d u ra tio n of 6 to 8 w eeks

at th e e n d of sem ester II or sem ester IV d u rin g the S u m m e r vacations in a
bu sin ess/co rporate/research/acad em ic organisation.

iO
9. A n ex am in ation in all o d d sem ester p ap e rs shall be co n d u c ted a t the e n d of o d d
sem esters a n d a n ex am in ation in all ev e n sem ester p ap e rs shall be c o n d u c te d at
the e n d of even sem esters w ith an only exception of V sem este r ex a m to be h eld
alo n g w ith the VI sem ester exam . ............

10. Each theory p a p e r shall carry 100 m arks, o u t of w hich 25 m a rk s shall b e reserved
for internal assessm ent. In the internal assessm ent, 20% w e ig h ta g e w ill be g iv en
to atten dan ce, 80% m ark s for assignm en ts/tests/ho use ex a m in a tio n /p ro je ct
presentation. T h e internal assessm ent shall be co n d u c ted once for each s tu d e n t in
each paper. D u rin g su b seq u e n t reappear, essential or for im p ro v e m e n t, the
in tern al assessm ent m ark s shall rem ain u nch an ged .

11. The c o m p u ter p a p e r in V th Sem ester shall also carry 100 m ark s of w h ich 25
m a rk s shall be reserved for internal assessm ent a n d 25 m ark s for p racticals to be
co n d u c ted & ev a lu ated jo in tly by internal a n d external e x a m in e r d u r in g the
sem ester. The rest of the 50 m arks shall com prise of a project to b e e v a lu a te d
th ro u g h a viva voce co n d u c ted by the U niversity.

12. For each theo ry paper, a w ritte n exam ination of three h o u rs d u ra tio n at the e n d
of each sem ester for 75 m ark s an d for co m p u ter p a p e r a practical exam of 2 h o u rs
d u ra tio n a n d a viva voce will be co nd ucted b y the u n iv ersity on th e project
s u b m itte d by the student.
 T h e p a p e r of exam ination shall be as follows:

Sem P a p e r N o. a n d T itle Lectures* T uto rial D u ra tio n of W ritten In ternal To la I

. No. per w eek Classes** W ritte n Exam Exam A ssessm en t M axim um
per w eek (in hours) M ax M arks M ax M arks M arks
(1) (2) (3) (4) (5) (4)+(5)= (6)
101: M icro Econom ics - 1 4 1 3 75 25 100
T 102: Statistics for Business Econom ics 4 1 3 75 25 100
1.
103: F u n d am en tals of B usiness & A ccounting 4 1 3 75 25 100
104: Business C o m m u n ic atio n 4 1 3 75 25 100
201: M icro Econom ics - II 4 1 3 75 25 100
TT
202: M ath em atics for B usiness Econom ics 4 1 3 75 25 100
11.
203: Legal Aspects of Business 4 1 3 75 25 100

204: M ark eting M an a g em en t 4 1 3 75 25 100

301: M acro Econom ics - 1 4 1 3 75 25 100
302: Industrial Economics 4 1 3 75 25 100
iii.
303: Business Finance 4 1 3 75 25 100

304: Basic Econom etrics 4 1 3 75 25 100

401: M acro Econom ics - II 4 1 3 75 25 100
402: O rg anisation al B ehaviour 4 1 3 75 25 100
IV.
403: Q u an titativ e T echniques for M an a g em en t 4 1 3 75 25 100
404: In d ian Financial System 4 1 3 75 25 100
 501: In d ian Econom y 4 1 3 75 25 100
502: C o m p u ta tio n a l T echniques for Business Economics Practical 25
3 lab o rato ry sessions of
exam of 2 P ro je c t: 50
110 m in utes p er g ro u p 100
h o u rs Practical :25
of 25-30 stu d en ts
d u ra tio n
V.
511: O p tio n FI: Investm ent M an a g em en t 4 1 3 75 25 100
521: O p tio n M l: C o n su m er B ehaviour 4 1 3 75 25 100
531: O p tio n Q1 : A d vanced Econom etrics 4 1 3 75 25 100
541 : O p tio n El : International Econom ics 4 1 3 75 25 100
551 : O p tio n PI : Project M an ag em en t 4 1 3 75 25 100
601: E n v iro n m en t Economics 4 1 3 75 25 100
602: Business Strategy & Ethics 4 1 3 75 25 100
611: O p tio n F2 : International Finance 4 1 3 75 25 100
VI. 621: O p tio n M2: A d v ertisem en t & B rand M an ag em en t 4 1 3 75 25 100
631: O p tio n Q2 : A dvanced M athem atical Techniques 4 1 3 75 25 100
641: O p tio n E2 : Economic G ro w th & Policy 4 1 3 75 25 100
651 : O p tio n P2 : E n trepreneursh ip a n d Fam ily Business 4 1 3 75 25 100
TO TA L 2400

’'L ectures will be of 55 m inu tes du ration .

** T utorial class shall be of 55 m in u te s d u ra tio n an d shall be held for each batch of 8 to 10 students.
P r o m o tio n R u le s

1. In ternal Assessment perform ance is not considered for prom otion purposes: For
the purpose o f passing and promotion o f a student the marks secured by the student in
the internal assessment shall not be considered.

2. I n te r n a l A s s e s s m e n t is c o n d u c te d once: The internal a sse ssm e n t of each

s tu d e n t in e a ch p a p e r is c o n d u c te d w h e n the s tu d e n t is en ro lled a s a re g u la r
s tu d e n t in th e y ea r in w h ic h the p artic u la r p ap e r is tau g h t. Intern al asse ssm e n t
m ark s scored b y the s tu d e n t shall rem ain u n ch a n g ed in case the s tu d e n t
su b se q u e n tly en g a g es in essential reappear, re ap p ea r for im p ro v e m e n t o r
re a p p e a r after failing.

3. P a s s in g in a y e a n A s tu d e n t shall be re q u ired to obtain a t least 40% of m a rk s in

th e ag g reg ate in b o th th e sem esters together in all th e eig h t p a p e rs to be
dec lare d p asse d in a p artic u la r year.

4. P ro m o tio n to th e n e x t y e a r w i th o u t p assin g : If a s tu d e n t fails to sec u re 40%

m a rk s in ag g reg ate in b o th the sem esters togeth er in all the e ig h t p ap e rs, then
subject to essential re a p p e a r in a m a x im u m of tw o p a p e rs in w h ic h th e s tu d e n t
h a s scored the least m ark s, if the ag g reg ate in the re m a in in g six p a p e rs is 40%
m a rk s o r higher, th e s tu d e n t shall be p ro m o te d to the n ex t y e a r w ith essential
re a p p e a r in o n e or tw o papers. Such p ro m o ted stu d e n ts shall b e re g u la r
s tu d e n ts of th e college if th ey w e re en rolled in the first o r sec o n d y e a rs a n d
shall be re q u ired to en rol as ex -stu d e n ts in case they w e re enrolled in th e th ird
year.

5. P a s s in g afte r P ro m o tio n w ith E ssen tial R eapp ear: A s tu d e n t w h o is re q u ired

to re a p p e a r in an y p ap er(s) of a n exam inatio n of a n y y ear a t a s u b s e q u e n t
ex am in atio n m a y b ^ declared to h a v e p asse d the e x a m in a tio n if by com b inin g
th e m a rk s o b ta in e d in th a t paper(s) at the su b seq u e n t e x a m in a tio n w ith the
m a rk s o b ta in e d in th e re m a in in g p a p e rs earlier, h e/sh e secures th e m in im u m
m ark s re q u ired for p assin g the ex am in atio n of that year.

6. F a ilin g in a y e a r A s tu d e n t w h o is n o t eligible for p assin g o r for p ro m o tio n

w ith re a p p e a r shall b e d e e m e d to h a v e failed in the p artic u la r year. T h e s tu d e n t
w h o fails in First or Second or T h ird y ear exam ination shall be re q u ire d to
re a p p e a r in th e su b se q u e n t exam inatio n on being en rolled as a n ex -stu d e n t as
p e r the rules of the U niversity.

7. R e a p p e a rin g fo r a fa ile d s tu d e n t: A n ex -stu d e n t shall be re q u ired to re -ap pear

only in those p a p e rs in w h ich the s tu d e n t has scored less th an 40% of the m ark s
in the w ritten ex am in atio n. In case the s tu d e n t w ishes, the o p tio n to re p eat an
en tire sem ester o r the entire y ear shall be available.

8. S c h e d u lin g o f Papers: A n exam in atio n in all odd sem ester p a p e rs shall be

con d u c ted at th e end of o d d sem esters a n d an exam ination in all ev e n sem ester

14
 p ap ers shall be co n d u c ted a t the end of even sem esters N o s u p p le m e n ta r y
e x a m in a tio n for an y of the sem ester shall be conducted.

9. R e a p p e a rin g fo r im p ro v e m e n t: R eapp earin g for im p ro v e m e n t in a n y p a p e r is

p e rm itte d subject to the co n d itio n th at pap ers of the first a n d second se m e s te rs
m ay be im p ro v e d u p o n in the third a n d fourth sem esters respectively a n d the
p ap e rs of the th ird a n d fou rth sem esters m ay be im p ro v e d u p o n in th e fifth a n d
sixth sem este rs respectively. A fter passing the third y ea r a s tu d e n t m a y choose
of re a p p e a r for im p ro v e m e n t in one or m ore in d iv id u a l p a p e rs of the th ird
year.

10. A w a rd o f D egree: S tu d en ts w h o hav e secured pass in each of the th re e years

are eligible for the a w a rd of a B.A. (H onours) deg ree in Business Econom ics.
Such c a n d id a te s shall be classified on the basis of the co m b in ed re s u lt of
sem ester I, II, III, IV, V an d VI ex am in atio ns as follows:

C a n d id a te s securin g in ag g reg ate shall be categorised as follows:

75% a n d ab ov e First D ivision w ith Distinction

60% a n d less th a n 75% First D ivision
50% to less th a n 60% Second Division
40% to less th a n 50% Third D ivision

11. M a x im u m p e rio d : A c a n d id ate m u st qualify for the a w a rd of the d e g re e w ith in

5 years of h is/h er first ad m issio n to the course.

15
 COMPARATIVE STATEMENT
Sem ester-I Existing Paper Paper No. 1'roposed P aper R em arks

P a p e r-I Basic Macro Economics Paper-101 Micro Economics - 1 Paper shifted from Sem II and syllabus revised
P a p e r-I I Statistics for bu siness Pa per-102 Business Statistics Syllabus revised

P a p e r - I ll Fundamentals o f Business & Paper-103 Fund am en tals of Business & Syllabus revised
Accounting Accounting
Paper-IV Business Com m unication Pa per-104 Business C ommunication Syllabus revised
Sem ester-II E x istin g Paper Paper No. P rop osed Paper R em arks
Pa p e r - V Basic M i c r o E c o n o m i c s P a p e r-2 0 1 M ic r o E c o n o m i c s - 2 P a p e r s h i f t e d f r o m s e m IV a n d S y l l a b u s r e v i s e d
P a p e i-V I M a t h e m a t i c s fo r B u s i n e s s P aper-202 M a t h e m a t i c s fo r B u s i n e s s Syllab u s revised
Paper-V II International trade Paper-203 Legal A s p e c ts o f B usiness S h i f t e d f o r m s e m e s t e r III a n d S y l l a b u s r e v i s e d
P a p e r-V III M arketing M a n a g e m e n t Paper-204 I\ l a r k e t i n g M a n a g e m e n t Sy lla b u s revised
S em ester-Ill E xisting Paper Paper No. P roposed Paper Rem arks
P a p e r-I X A p p lied M acro E conom ics Paper-301 M acro E conom ics - 1 P a p e r s h i f t e d fr om s e m I a n d S y l l a b u s r e v i s e d
Paper-X Legal A s p e c t s o f b u sin e ss Paper-302 In d u s t r i a l E c o n o m i c s Syllabu s revised
Paper-X I In d u s t r i a l E c o n o m i c s Paper-303 B u s in e ss F inance Sh ift e d f r o m o p t i o n a l g r o u p & r e v i s e d
P a p e r- X II F u n d am en tals of C o m p u te rs Paper-304 Q uan titative T ech niqu es for S h i ft e d f r o m o p t i o n a l g r o u p & s y l l a b u s r e v i s e d .
M anagem ent
S em ester-IV Existing Paper Paper No. P ro p ose d Paper Rem ark s
P aper-X III Applied Micro econom ics Paper-401 Macro Economics - 11 P a p e r s h i f t e d f r o m s e m II a n d S y l l a b u s r e v i s e d
Paper-X IV M anage men t and Organizational Paper-402 Organisational Behaviour Syllabus revised
Behaviour
Paper-X V A p plication s o f co m p u ters Paper-403 B isic E c o n o m e t r i c s S h ift e d f r o m o p t i o n a l g r o u p & s y l l a b u s r e v i s e d .

Paper-X VI I n d i a n F in a n c ia l s y s t e m Paper-404 I n d ia n F in a n c ia l S y s t e m & M a r k e t s Sy lla b u s revised

Se m e ster -V Existing Paper Paper No. P ropose d Paper Remarks

P a p e r-X V I] In d ia n E c o n o m y Paper-501 Indian E c o n o m y Sy lla b u s revised

P aper-X V III Economic policy and Paper-502 Com putational Techniques f a r Business N e w p a p er introduced and Sy lla b u s revised
comparative dev e lop m en t

P ap e r-X IX Optional paper 1(A) 511 to 551 Elective Paper 1 (A)

Paper-X X Optional paper 2(A) Elective Paper 2(A)

Sem ester-V I Existing Paper Paper N o. P rop osed Paper Remarks

Paper-X XI Environment Economics Paper-601 Environmental Economics Syllabus revised

P a p e r-X X II Business Strategy Paper-602 Business Strategy & Ethics Syllabus revised

Paper-XXII I Optional paper 1(B) 611 to 651 Elective Paper 1(E)

Paper-X XIV Optional paper 2(B) E ective Paper 2(E)

 Elective Papers

O ptional G roups Existing Paper Paper No. P r o p o se d Paper R em arks

G roup A F in an cial m a n a g e m e n t G rovp F F in ance

Pa p e r - 1 C orporate finance P a p e r - 511 (FI) In ter n a tio n a l f i n a n c e Sy lla b u s revised
Pa p u r- 2 In t e r n a t i o n a l fin a n c ia l m a n j g e m e n t P a p e r- 61 1. (F2) Investm ent m an a g em en t N e w paper in tro d u ced
G roup B In ternational B u s in e ss E n v ir o n m e n t G roup M M ark etin g
P a p e r-1 In t er n a t io n a l B u s i n e s s E n v i r o n m e n t P a p e r- 5 2 1 ( M l ) C o n su m e r B ehaviour Syllabus revised
P a p e r- 2 International B u siness P a p e r- 6 2 1 (M 2) Brand & A d v e r tise m e n t M g m t N e w paper intro d u ced
G roup C E ntrepren eu rship and Sm all B u sin e ss G roup Q Q uan titative T ech n iq u es
Paper-1 E ntrepren eu rship and Fam ily B u sin ess P a p e r - 531 ( Q l ) A d v a n c e d Econom etrics N e w paper introduced
P ap e r-2 Sm all B u sin e ss M a n a g e m e n t Pa p e r-6 3 1 . (Q2) A d v a n c e d M ath T e ch n iq u es N e w pap er intro d u ced
Group D M ark eting G roup E E conom ics N e w G ro u p intro d u ced ,
Pa p e r -1 C o n s u m e r B e h a v io u r and Sales M a n a g e m e n t P a p e r - 541 ( E l ) International E co no m ics S h i f t e d f r o m s e n .este r II
Paper-2 M arket Research P a p e r - 641 (E2) E c o n o m i c G r o w t h & P o li c y Sh ifted from se m e ste r V
G roup E C om p u ter A p p lication s G roup P Project M g m t & E n trep r en eu rsh p N e w O ptional G rou p
Pa p e r -1 P r o g r a m m i n g in ' C ' L a n g u a g e P a p e r 551 (PI) Project & R isk M a n a g e m e n t N e w paper introduced
Paper-2 D a ta B a se : C o n c e p t s a n d A p p l i c a t i o n s P a p e r 651 (P2) E n t r e p r e n e u r s h i p & F a m il y Bus. N e w paper in troduced
G r- P A d v a n c e d Q u an titative T e ch n iq u es
Paper - 1 O p e r a t i o n R e se a r c h arid A p p l i c a t i o n s
Paper - 2 Econom etrics : T h eory and A p p lica tio n s
G r- G M a n a g e m e n t o f Services
Paper - 1 F in an c ial S e r v i c e s
Paper - 2 N o n F in ancia l S e r v ic e s
. . .......

17
 Structure of Papers for the R e v is e d B .A .(H o n s .) B u s i n e s s E c o n o m ic s c o u r se

S em ester - I
P a p e r -101
M ic r o e c o n o m ic s - 1

UNIT 1 : BASIC CONCEPTS

Positive a n d n o rm a tiv e econom ics; con structing a m odel, scientific m eth o d ; co n c ep ts of
o p p o rtu n ity cost, ra te of g ro w th, elasticity, a n d of total, a v e rag e a n d m arg in al functions.

UN IT 2 : C O N SU M E R D E M A N D
C a rd in a l th eory, d e riv a tio n of d e m a n d in case of one or m o re goods; O rd in a l theory:
B u dg et sets a n d P references u n d e r differen t situations. Indifference cu rv es a n d the rate
a n d elasticity of sub stitution. C o n s u m e r equilibrium ; effects of ch a n g e in prices a n d
incom e; Engels curve. D eriv ation of d e m a n d curve. Incom e a n d s u b stitu tio n effects
effects: H icks a n d Slutsky. A pp lication s of indifference cu rv es to o th er eco nom ic
problem s.
M ark et d e m a n d : elasticity, shifts a n d m o vem ent; inverse d e m a n d function.
R even ue a n d E xp end iture, elasticity a n d m arginal revenue; incom e elasticity of d e m a n d ;
co n su m e r su rp lu s.
R evealed preferen ce theory: WARP, SARP an d the d eriv a tio n of d e m a n d curve.

UN IT 3 : PR O D U C T IO N
P ro d u ctio n functions: single variable - ave rag e a n d m arg in al p rodu ct, variable
propo rtion s, stag es of p ro du ction . T w o variables - isoquants, re tu rn s to scale a n d to a
factor; factor prices; cost m in im isatio n a n d o u tp u t m ax im izatio n ; Elasticity of
substitutio n. E x p a n sio n p a th a n d th e cost function.

UNIT 4 : COST
C c n c c p t of eco no m ic cost; S hort ru n a n d long ru n cost curves; in creasing an d d ecreasing
cost indu stries; e n v e lo p e curve; L -shaped cost curves; econom ies of scale.
Prices as p aram eters: Firm equ ilibriu m an d profit; sh o rt a n d lo n g -ru n su p p ly function;
taxes a n d subsidies.

UNIT 5 : MARKETS
Perfect co m p etition : E quilibrium of the m arket. Long ru n in d u stry su p p ly ; p ro d u c e r and
co n s u m e r su rp lu s; effects of taxes an d subsidies.

S u g g e s te d R e a d in g s

1. Varian, H a l R.: Interm ediate M icroeconom ics (Sixth edition)

2. Bernheim , B. D o u g las & W hinston, Michael D.: M icroeconom ics [TMH, 2009]
3. Pindyck, R obert S. & Rubinfeld, Daniel L.: M icroeconom ics Sixth Edition [PHI]
4. B row ning, E d g a r K. & Z upan,: M icroeconom ic Theory a n d A pplications
 S em ester - I
Paper -1 0 2
S t a t ist ic s F O R B USINESS E C O N O M IC S

U N IT 1 : IN T R O D U C T IO N
D ata ty p es a n d scale. Sources. S am p le a n d population. S igm a notation.

U N IT 2 : U N IIV A R IA T E ANALYSIS
M easures of central tendency, ab solu te a n d relative m easures of d ispersion , m o m en ts,
S h ep p ard 's corrections for m o m e n ts for g ro u p e d data. M easures of s k e w n e s s a n d
kurtosis. A pplications.

U N IT 3: M U L T IV A R IA T E ANA LYSIS
C orrelation: sim ple, m ultiple a n d partial; linear a n d non-linear. C a u s a tio n a n d
correlation. Use of raw a n d g ro u p e d data. Probable errors. R ank C orrelation.
R eg ressio n A n a ly sis : P rinciple of least squares an d regression lines. R egression
eq uations a n d estim ation, d eriv a tio n of no rm al equations. S u m s of sq uares. S ta n d a rd
Error of Estim ates. Regressions w ith tim e series data. E stim ation of g ro w th rate.

U N IT 4: IN D E X N U M B ER S
Laspyres, Paasche index n u m b e rs a n d th eir relation. Bowley, M arshall E d g e w o rth an d
Fisher indexes. Fixed a n d chain base in dex num b ers. Tests of adeq uacy . Base shifting,
splicing a n d deflating. C o nstru ctio n of real indexes: C o n s u m e r Price Index a n d BSE
index.

U N IT 5: PRO BABILITY A N D D IS T R IB U T IO N S
R eview of co u n tin g rules. D efining probability. Types of events. Joint a n d con ditio nal
probability. A d d itio n a n d m ultip licatio n rules. Bayes' th eo rem . Probability d istrib utio ns.
Discrete a n d c o n tin u o u s ra n d o m variables. M ass a n d den sity functions a n d cu m u lativ e
probabilities. Joint probability distributions, m arg in al a n d conditional d istrib utio ns.
M athem atical expectation a n d variance.

T h eo retical d is trib u tio n s : discrete: u n iform , bernoulli, bin om ial a n d poisson; con tinuo us:
uniform , exp onential a n d N orm al.

S a m p le a n d Surveys: S am ple a n d com plete enum eration. M e th o d s of sam p le selection:

rand om , stratified, m ultistage cluster. S am p le m easures a n d the d egrees of freedom .

S u g g e ste d R e a d in g s

1. K arm el, P.H. & Polasek, M.: A p p lie d statistics for econom ists
2. Spiegel, M.R.: T heory & Problem s of Statistics, S ch au m 's o utline series, M cG raw
Hill Pub. Co.
3. Spiegel, M.R.:. Probability and Statistics
4. Freund: M athem atical Statistics

19
 S em ester - I
PAPER - 1 0 3
Fu n d a m en tals of Bu sin e ss a n d a c c o u n t in g

Objective:
T he co urse aim s to p ro v id e basic co ncepts a n d k n o w le d g e of a b u sin ess e n te rp ris e a n d w ith
the basic ac co u n tin g p rin cip les a n d tec h n iq u e s of p re p a rin g an d p re s e n tin g th e acco u n ts for
u s e r of ac co u n tin g inform ation .

U N IT 1 : IN T R O D U C T IO N TO BUSIN ESS
C oncep t, N a tu re a n d Scope of B usiness Enterprise; C on cep t of B usiness as a System ;
B usiness a n d E n v iro n m e n t Interface; E n trep ren eu rial o p p o rtu n itie s in c o n te m p o ra ry
b u sin e ss e n v iro n m e n t o r e m e rg in g tre n d s in business: N e tw o rk in g m ark etin g,
Franchising, B usiness P rocess O u tso u rc in g , k n o w led g e Process O u tso u rc in g , E-
com m erce a n d M -C om m erce.
O p p o rtu n ity a n d Id ea G e n era tio n - role of C reativity a n d In n ovation . Feasibility s tu d y
a n d p re p a ra tio n of B usiness P la n Basic consid eratio ns in setting u p a B usiness Enterprise.
Process of settin g u p a B usiness E nterprise.

U N IT 2 : IN T R O D U C T IO N TO FINANCIAL A C C O U N TIN G
C o n c e p t of Financial A cco un tin g. T y p es of A ccounting: Financial, C o s t a n d M an a g em en t
A ccc*} m H n o - A^ - . ,--0 ^. . w ciTl T n f. r \ r m a £ -i o p *
................... . . .. TV>o ] i. c p- -r c S.... . ^A -*>->4^,-r
. ...

In fo rm atio n a n d th e ir needs. Q u a litativ e C haracteristics of A c c o u n tin g Inform ation.

F unctions, A d v a n ta g e s a n d L im itations of Financial A ccounting.
Basis of A ccounting; C ash basis a n d A ccrual basis. The n atu re o f Financial A cco unting
Principles - Basic C o n cep ts a n d C on ventions: Entity, M o ney M ea su rem en t, G oing
C oncern, Cost, R ealisation, A ccruals, Periodicity, Consistency, P ru d e n c e (C onservatism ),
M ateriality a n d Full Disclosures.
F inancial A ccou nting S tan d ard s: concept, benefits, p ro c ed u re for issu in g A ccounting
S ta n d a rd s in India. Salient fe atu res of A c co u n tin g S tand ard (AS): 1 (ICAI)
A ccou ntin g Process
F rom recording of B usiness T ransactio ns to p re p a ra tio n of Trial Balance, a n overview .

UN IT 3 : X
(i) Final A ccounts W ith A djustm ents
M e a n in g a n d features. P re p a ra tio n of T ra d in g a n d Profit an d Loss acco un t, Balance Sheet.

(ii) D epreciation A ccounting

M e a n in g of D eprecation, causes, objects of p ro v id in g D epreciation, factors affecting
D epreciation, acco unting tre a tm e n t in clu d in g prevision for D ep reciatio n Accounting.
M e th o d s of depreciation: S traigh t Line M eth od, D im inishing Balance M eth od, C h ang e of
M e th o d as p er revised AS-6.
(iii) V aluation O f Inventories
M eaning . Significance of In v e n to ry V aluation. I n v e n t o r y R e c o r d
Systems: Periodic a n d Perpetual. M ethods: FIFO, LIFO and W eighted Average.
Salient features of A ccounting S ta n d ard (AS): 2 (ICAI)
(iv) Fixed A ssets V a lu a tio n : Salient features of Accounting Standard AS-L).
U N IT 4 :
(i) Introduction To Corporate Accounts
C ash F low Statem ent: C o ncepts of funds. P rep aratio n of C ash Flow S ta te m e n t as p er
A cco un ting S ta n d a rd (AS): 3 (Revised) (ICAI): Indirect m eth o d only.
C o rp o ra te Financial S tatem ents: Schedule VI FORM AT as prescribed in C o m p a n ie s Act,
1956.
(li) Financial A n a ly sis
Financial S ta tem en ts a n d th eir Limitations, C oncepts of Financial A nalysis, Tools of
Financial Analysis: C o m p ara tiv e Financial Statem ents, C o m m o n Size Financial
Statem ents, T rend P ercentages, Ratio Analysis, C ash Flow Analysis

UNIT 5: IN T R O D U C T IO N TO COST CONCEPTS FOR DECISION M A K IN G

C oncept of Cost. T yp es of Cost. Relevance of Cost in Decision M aking.

S uggested Readings:
1. A n th o n y , R.N., a n d J.S. Reece, “Accounting Principles", Richard D. Irw in, Inc.
2. M onga, j.R., ''Financial Accounting: Concepts and Applications'', M ayoor P ap er Backs, N e w
Delhi.
3. Shukla, M.C., T.S. G re w al a n d S.C.Gupta, "Advanced Accounts", Vol-I, S.C hand & Co.,
N e w D elhi.
4. G upta, R.L. an d M. R ad h asw am y , " Advanced Accountancy", Vo!-I, S ultan C h a n d & Sons,
N e w D elhi.
5. M ah e sh w ari, S.N. a n d . S. K. M aheshw ari, "Financial Accounting", Vikas P u b lish in g
H ouse, N e w Delhi.
6. Tulsian, P.C., " Advanced Accounting", Tata Me G raw Hill, N e w Delhi.
7. "C ompendium of Statements and Standards o f Accounting", The Institute of C h arte red
A c co u n tan ts of In d ia, N e w Delhi.
 Sem ester - 1
Paper-1 0 4
B u sin e ss C o m m u n ic a t io n

O b jec tiv e s: Effective C o m m u n ic a tio n is essential for holistic d e v e lo p m e n t of the stu d e n ts of

B usiness Econom ics. T h e oojective of the p ap e r is to d ev e lo p co m m u n ic a tio n skills in
sp ea k in g a n d w ritin g essential for all areas of m anagem ent.

U N IT 1 : I N T R O D U C T IO N T O B U SIN E SS C O M M U N IC A T IO N
Basic form of C o m m u n ic a tio n - D o w n w ard , u p w a rd a n d H orizo ntal co m m unicatio n,
P rocess of co m m u n ica tio n .
C o rp o ra te C o m m u n ic a tio n - Form al a n d inform al co m m u n ica tio n n etw o rk , G ra p e v in e -
single strand, gossip , cluster, Probability, Im portance of G rapev ine, M isc o m m u n ic a tio n or
B arrier to c o m m u n ic a tio n - W ro n g choice of m edium , Physics barriers, S em antic barriers,
different C o m p re h e n sio n of reality, Socio psychological barriers.
Principles of C o m m u n ic a tio n - 7c's concept

U N IT 2 : W R IT IN G SKILLS
P lan n in g b u s in e s s messages.. B usiness letters, M em o form ats, R equest letters, G o o d n ew s
letters, Bad n e w s letters. P ersu asiv e letters - AIDA, Sales letters, collection letters

D etailed Project R e p o rt W ritin g a n d p resen tatio n

U N IT 3: O R A L P R E S E N T A T IO N
Principles of o ral p re sen tatio n s, Factors effecting presentations
N o n - V erbal c o m m u n ic a tio n - A p p e ara n ce, Body language, Para langu ag e, T im e, Space,
Silence.
Effective Listening - factors affecting listening, Im p rov ing listening

U N IT 4: C O R P O R A T E C O M M U N IC A T IO N
In terv iew in g Skills - In te rv ie w e r's p reparation , In terview ee's p re p a ra tio n , T y p e s of
in terview
C o m m u n ic atio n for E m p lo y m e n t - R esum e: F orm ulating C areer Plans, P la n n in g y o u r
R esum e, S tru c tu rin g th e R esum e, C o n ten t of the Resum e, Electronic R esu m es

U N IT 5: IN T E R N A T IO N A L C O M M U N IC A T IO N
C u ltu ral sensitiveness, C u ltu ra l context
N egotiation S k ills - Process, Strategies, Issue in N eg otiatio n - C ollective b arg ain in g ,
P rocess & Essent i a i S of effective BC.

S u g g e s te d R ead in g s:

1. Ronald E. Duleck, John S.Fielden: Principles of Business C o m m u n ic atio n

2. M u rp h y a n d H i d e r b r a n d t : Business C om m unication
3. Bovee Thill: B usiness C o m n u m ic atio n Today, Me <"raw H i ! !
4. Malra Treece, Aiiyn an d Bacon : Successful C om m unication

n
5. R andall E. M ajors H a rp e r & Rom : Business co m m u nication
6. H a rp e rt & Row W e ste rn : G u id e to effective letter w riting
7. M ary Ellen G uffoy : B usiness C o m m u n icatio n
8. Fred L u th a n : O rg a n izatio n al Behavior(For N egotiation Skill)
9. C.B M m oria : In d u strial R elation (^or the topic o f collective b arg ain in g )

23
 S em ester -II
Pa per -2 0 1
M ic r o e c o n o m ic s - II

U N IT 1 : M A R K E T S W IT H IM PER FEC T C O M P E T IT IO N
M o n o p o ly : E quilib rium ; su p p ly ; m u ltip ia n t firm; m o n o p o ly pow er; d e a d w e ig h t loss;
price d iscrim in atio n ; b u n d lin g ; tw o -p a rt tariffs.
M on opo listic C o m p etitio n : P ro d u c t differentiation; e q u ilib riu m of th e firm in the
in d u s try -w ith e n try of n e w firm s a n d w ith price com petition. C o m p a ris o n w ith p u re
com petetio n.
O lig o p o ly a n d G a m e T heory: C o u m o t m ode! a n d reaction curves; B e rtra n d m o del;
q u a n tity lead ersh ip ; price lead ership; N o n collusive stable eq u ilib riu m ; sim u lta n e o u s
q u a n tity setting; collusion; cartels; C on cep ts of G am e Theory: D o m in a n t strate g ie s a n d
N a sh E qu ilibriu m ; M ixed strategies; P risoner's D ilem m a. Specification of olig op oly
m o d els in g a m e th eo retic term s.

U N IT 2 : F A C T O R M A R K E T S
Factor pricin g in the case of single a n d m an y variable factors; d e m a n d for labor in a
p ro d u c t m a rk e t w ith perfect com p etition a n d m o no po ly. M o n o p so n y , bilateral
m o n o p o ly a n d role of lab o u r unio ns. Econom ic ren t a n d quasi rent.

U N IT 3 : G E N E R A L E Q U IL IB R IU M
E d g e w o rth box; 2 g ood, 2 factor, 2 c o n su m er analysis a n d P are to o p tim a lity conditions;
m a rk e t trad e; W alras Law; R elative prices; E quilibrium a n d efficiency; G ra n d Utility
possibility frontier. Im plication of first a n d second w elfare theorem ;

U N IT 4 ; W ELFARE
Social w elfare function; w elfare m axim isation; Fair allocation; E n v y a n d eq u ity . A rro w 's
Im po ssibility Theorem .

U N IT 5 : M A R K E T FA ILURE
A sy m m etric in fo rm a tio n a n d signaling. Joint p ro d u c tio n a n d c o n s u m p tio n an d
externalities. C o m m o n p ro p e rty resources a n d public goods.

S u g g e s te d R e a d in g s

1. V arian, H al R.: In te rm e d ia te M icroeconom ics (Sixth edition)

2. B ernheim , B. D o u g las & W h ins ton, M ichael D.: M icroeconom ics [TM H, 2009]
3. Pindyck, R obert S. & R ubinfeld, Daniel L.: M icroeconom ics Sixth E d ition [PHI]
4. B row ning, E d g ar K. & Z u p an ,: m icroeconom ic T heory a n d A pp licatio ns
 S e m e s te r -II
Pa p e r -2 0 2
M a t h e m a t ic s for B u s i n e s s Ec o n o m ic s

U N IT 1 : B A SIC C O N C E P T S
N u m b e r system , Logic, E q u atio n s a n d Inequalities, C oncept a n d m e th o d s of proof. Set
theory; ty pes of relations in econom ics; functions, types, m on oto nicity a n d invertibility,
d o m a in an d range.

U N IT 2 : F U N C T IO N S
Sequences: convergent, d iv e rg e n t a n d oscillatory. Limit of a c o n v e rg en t seq uence. Series
and th eir convergence.
Real valued functions: Linear, polynom ial, hyperbolic, logarithm ic, p o w e r a n d th eir
applications. R oots of p olynom ials. Lim it of a real valued function. C o n tin u ity a n d
differentiability.

U N IT 3 : S IN G LE VARIA BLE D IF F E R E N T IA T IO N
Polynom ial, logarithm ic a n d p o w e r functions a n d their applications. Rates of chang e an d
the tangent. A pp lications of continuity' a n d differentiability: In term ed iate value, extrem e
v alue a n d m e a n value theorem s. Taylor's a n d M cLaurin's series a n d expansions.
Stationarity, convexity a n d concavity of functions. Global a n d local ex tre m a a n d points of
inflexion. A pp lication s to Econom ics.

U N IT 4 : LIN EA R ALG E B R A
Vector space: o p eratio n s of a d d itio n a n d scaler m ultiplication a n d th eir geom etric
representation; lin ear co m binations, linear s p a n a n d basis. Scaler P ro d u c t an d
orthogonality. M atrices: o p eratio n s of addition, m ultiplication, transpose. R o w /co lu m n
operations. M atrix types: sym m etric, orthogonal, id em po ten t. D e te rm in an ts a n d inverse.
Linear in d ep e n d en ce , R ank a n d so lution s to linear sim u ltaneous equations. A pplications.

U N IT 5 : F U N C T IO N S OF T W O VARIABLES
G eom etric representatio n. Level curves. Partial derivatives. Y oung's theorem .
H o m o g en o u s a n d h o m o th etic a n d CES functions. Euler's theorem . G eneralised chain rule
and im plicitly d efin e d functions. Differentials. Convex sets. C oncavity a n d convexity.
Local m axim a a n d m inim a. O p tim isa tio n of functions w ith a single eq uality constraint.

S u g g e s te d R eadin gs:

1. Sydsaeter, K n u t & H a m m o n d , Peter J.: M athem atics for E conom ic A nalysis [Pearsons
Education]
2. C hiang, A.C.: F u n d a m e n ta l M eth o d s of M athem atical Econom ics [TMH]
3. Allen, R.G.D.: M athem atical A nalysis for Economics [Macmillan]

25
 S e m e s t e r -II
P a p e r - 203
Le g a l A spects of B u sin e ss
Objective:
T he objective of the course is to im p a rt basic k n o w le d g e of the im p o rta n t b u s in e s s law s
alo n g w ith relev an t case law.

U N IT I : IN D IA N C O N T R A C T ACT, 1872
C o n trac t - m eanin g, essentials a n d kinds. Offer, A cceptance, C o n sid e ratio n , C o n trac tu a l
C apacity, Free consent. M o d es of d ischarge of a contract a n d re m e d ies for b re a c h of a
contract.

U N IT 2: N E G O T IA B L E IN S T R U M E N T S ACT, 1881
M e a n in g a n d characteristics of P ro m isso ry N ote, Bill of Exchange a n d C heque. H o ld e r
a n d H o ld e r in D ue C ourse, N egotiation, C rossing of C heq ue - K inds a n d effects.

U N IT 3: C O M P A N IE S ACT, 1956
C o m p a n y - m ean in g, kinds, p ro c e d u re of form ation. M e m o ra n d u m of association,
A rticles of A ssociation & P rospectus. A llo tm en t of shares. S h are h o ld e rs a n d M em bers.
C o m p a n y M eetings a n d R esolutions

U N IT 4 : C O N S U M E R P R O T E C T IO N AC T, 1986
S tru ctu re of the Act, jurisd ictio n a n d definitions. C o n su m e r co m p lain t - m eanin g, relief
av ailab le to a consum er.

U N IT 5 : IN F O R M A T IO N T E C H N O L O G Y ACT, 2000
S chem e of th e Act, definitions. D igital S ignature a n d Electronic G ov ernan ce. R egulation
of C ertifying A uth orities

Note: T he lea d in g cases sh o u ld b e d iscu ssed at relevant places.

S u g g e sted Readings:

1. K uchhal, M.C.& P rakash, D eepa , " Business Legislation for Management", Vikas
P ublishing, H o u se (P) Ltd., N e w Delhi.
2. C h ad h a, P. R .and Bagrial, A shok k., "Business Law" G algotia P u b lish in g C om pany,
N e w Delhi.
3. Singh, A vtar, "The Principles of Mercantile Law ”, Eastern Book C om p any ,
4. L ucknow .
5. M ah e sh w ari & M ah esh w ari, "Business Lazo", N ational P ub lish ing H ouse, N e w Delhi.
6. K apoor, N . D., "Business Law”, S ultan C h an d & Sons, N ew Delhi.
7. Desai, T.R., "Indian Contract Act, Sale of Goods Act and Partnership A c t", S.C. Sarkar &
Sons Pvt. Ltd., Calcutta.
S. Bagrial, A. k, "Company Law ”, Vikas Publishing, H ouse (P) Ltd., N e w Delhi.
9. D atey, V.S., " Students Guide to Corporate Laws", T ax m an's A llied S ervices (P) Ltd.,
N e w Delhi.
10. Singh, Avtar., "Company Law ”, E astern Book C o m p an y L uch no w .
11. K apoor, G.K., "Corporate Laws & Secretarial Practice", P rem ier B ook C o m p a n y , N e w
n .n .;
L/eini. _ -• • ■
12. C h ad h a, R eena,C hadha, Sum ant, "Corporate Laws", M ayur Paperbacks, N e w D elhi.
13. C o n s u m e r Protection A ct,1986.
14. "Information Technology Rules 2000 & Cyber Regulations Appellate Tribunal Rules
2000 with Information Technology Act 2000" T ax m an n P ub lications Pvt. Ltd.,
N e w Delhi.
15. Painttal, D., "Law of Information Technology" T a x m a n n P u blication s Pvt. Ltd., N ew
Delhi.
 S e m e s t e r -U
Pa per -2 0 4
M a r k e t in g M anagem ent

Objective:
A n in tro d u cto ry s tu d y of the v a rio u s principles a n d functions of m a rk e tin g k e e p in g the
In d ian b a c k d ro p w h e re v e r possible.

U N IT I: U N D E R S T A N D IN G THE BASICS
Introduction : D efinition o f m ark et, m ark etin g and m ark e tin g m an a g em en t, M a rk e tin g
functions, O bjectives of m ark e tin g m anagem ent, C o m p a n y 's o rie n ta tio n to w a rd s
m arketing

M arketing E nvironm ent : N a tu r e of m ark e tin g en viro nm ent, E n v iro n m en ta l analysis

a n d scanning, a n d its Im portance, Types of m ark etin g e n v iro n m e n t: Economic,
D em ographic, Socio- cultural, technological, political a n d legal (facts o n In d ian
e n v c iro n m en t m u s t be in co rp o rated )

Indian M arketing E nvironm ent : Factors d ete rm in in g co m p etitiv e forces (Michael

P o rter's m odel), Sea ch a n g e in the Indian m ark e tin g e n v iro n m e n t co n se q u e n t to
liberalization, M ark etin g challenges of the liberalized econom y.

UNIT 2 : NATURE OF MARKETING

Market S egm en tatio n s an d M arket targeting: Leveis a n d P attern s of m ark e t
segm entation s, M ark et se g m e n ta tio n procedure, Bases for seg m e n tin g co n su m e r
m arkets. E v alu a tin g a n d selecting th e m ark e t segm ents.

M arketing m i x j C o n cep t of in teg ra te d a p p ro ach to m a n a g e m ark e tin g m ix ra th e r than

m an a g in g e a ch 'P ' separately .

r tx t rnr ^ . n r » r \ r > T a \ r n nr» r r ’TXTr1 ncrTCTn\T

u i x i i O . i i \ u L/UV,i rvl xi-/ i xvj

P ro d u ct life cycle: th e concept a n d its strategic im plications, P ro d u c t mix: levels,

hierarchy, classifications, mix.
P ro d u ct line decisions: p ro d u c t line analysis, p ro d u c t line length, line m odernization,
featuring, p ru n in g . \
Positioning: D ev elo p in g a n d co m m u n icatin g a p ositioning strategy, w h ich p ositio nin g to
prom ote, c o m m u n ic a tin g a c o m p a n y 's positioning.
Differentiation: d ifferen tiatio n tools. P roduct, services, perso nn el, channel, im age
differentiation.
B randing: b ra n d decisions. W h a t is b ra n d , bu ild in g b ra n d identity, b u ild in g b ra n d s in
the n ew econom y, b ra n d equity, b ra n d in g challenges, b ra n d n a m e decisions, b ra n d
b u ild in g tools, b ra n d strategy decision, b ra n d asset m an a g em en t, b ra n d a u d itin g and
repositioning.
Pricing: significance of pricing, factors influencing pricing, p ricin g objectives, pricing
strategies a n d p ro cedu re.
U N IT 4 : P R O M O T IO N A N D D IS T R IB U T IO N
C o m m u n ic atio n Process, Steps to achieve effective co m m u n icatio n , T he c o n c e p t of
In teg rated M ark etin g C o m m un ication

A dvertisin g :_ settin g th e adv ertising objectives, deciding ^ n the a d v e rtis in g b u d g e t,

choosing the a d v e rtis in g m essage, deciding on m ed ia a n d m e a su rin g effectiveness.

Sales pro m o tio n : its p u rp o se, m ajor decisions in sales p ro m o tio n .

Personal selling: prin ciples of personal selling. P rofessionalism , neg o tiatio n

Public relations a n d publicity: m ark eting public relations, m ajo r decisions in m a rk e tin g
PR. C oncept of d irect m arketing: grow th, benefits, in teg ra te d direct m ark etin g , m ajor
channels, catalog m arketing,

C hannels: C h an n el functions and flows, channel levels, service sector channel,

in form ation h ig h w a y channels, C h annel dynam ics: vertical m ark e tin g system , h o rizo n ta l
m ark e tin g system , m ultichannel m ark etin g system , conflict, coop eration, com petition,
legal a n d ethical issues in channel relations.

Retailing a n d w holesaling: types of retailers, m arketing decisions, tre n d s in retailing,

w holesaling: g ro w th a n d types, m ark etin g decisions, trends.

M ark et logistics: objectives, decisions, organizational lessons, sto re m anagem en t,

U N IT 5 : C O N T E M P O R A R Y ISSUES
Ethics in M ark etin g
N e w e r con cepts like R elationship m arketing, Holistic m ark e tin g , G re en m arketin g,
services m ark etin g , political m ark eting etc.
T elem arketin g a n d M -comm erce, e-m arketing, R ural m arketing, T re n d s in Retailing

N o te: case s tu d y a n d case lets m u s t be in clu d ed .

S u g g e s te d R ead in g s:

1. M arketing M an a g em en t, Phillip Kotler.

2. M ark etin g M an ag em en t, R am asw am y and R am aku m ari
3. Business a n d M ark etin g M agazines
 Pa per -301
M a c r o e c o n o m ic s - 1

O b j ective:
M acroeco nom ics is th e s tu d y of the ag g reg ate perfo rm ance of th e ecr
n a tio n al incom e, g ro ss dom estic pro du ct, rate of g ro w th of th e econc
u n e m p lo y m e n t levels, inflation and price levels, etc. The present sy llab u s i r u , :
a n u n d e r s ta n d in g of th e eco nom y for s tu d e n ts at th e u n d e r g ra d u a te level,
b e e n d iv id e d into tw o parts, as M acroeconom ics I & II, to be cov ered
sem este rs respectively.

U N IT 1. A N IN T R O D U C T IO N T O BASIC M A C R O E C O N O M IC S C O N O
D 'S o u za (2008): C h a p te r 1
Econom ic S u rv ey (Latest)

U N IT 2. IS -L M M O D E L
B lanch ard (2006): C h a p te rs 3, 4 & 5
D 'S o u za (2008): C h a p te r 8 (pages 255-256)

U N IT 3. A G G R E G A T E SUPPY A N D A G G R E G A T E D E M A N D M O D E L
B lan ch a rd (2006): C h a p te rs 6 & 7

U N I T 4. IN F L A T IO N , U N E M P L O Y M E N T A N D T H E PH ILLIPS CURVE
B lan chard (2006): C h ap ters 8 & 9
Econom ic Surv ey-L atest

U N IT 5: a) E co n o m ics o f G re a t E v en ts-D ep re ssio n , H y p e rin fla tio n a n d D e fid v

b) A d v a n c e s in B u sin e ss Cycle T h e o ry

1. D c rn b u sc h , Fischer an d Startz (2004): C h ap ter 18

2. M a n k iw (2005): C h ap ter 20

S u g g e s te d R e a d in g s
3. D 'S o u za , E. (2008): "M acroeconom ics", P earson Education: N e w Delhi.
4. B lan ch ard , O. (2006) : "M acroeconom ics" (IVlh Edition), P earson Ed'u
D elhi.
5. N . G reg ory M a n k iw (2005)'VUl Edition, M acroeconom ics, W o rth Pubiisi'
6. D o rn b u s c h R u diger, Fischer Stanley a n d Startz Richard (2004)- IXth E>.
M cG raw -H ill
7. G o v e rn m e n t of India (GOI) (Latest Y e a r): "Econom ic S urv ey", Minis;.. ■
: N e w Delhi
 S e m e s t e r - III
Pa p e r -3 0 2
In d u s t r i a l Ec o n o m ic s

U N IT 1 : S T R U C T U R E - C O N D U C T - PER FO R M A N C E P A R A D IG M
The Sim ple SCP m o d e l/fra m e w o rk w ith a n d w ith o u t feedbacks, its critiqu e a n d m o d ified
fram ew o rk w ith feedback.

U N IT 2 : M A R K E T C O N C E N T R A T IO N
D efinition o f the m ark et, n a tu re a n d m easu rem en t of m arket concentratio n, indices of
concentration, ineq uality m easures. Theories of m easu rem ent: d e te rm in istic and
stochastic app roach.

U N IT 3 : BARRIERS T O ENTRY
C oncepts to Barriers to Entry b y Bains, Stigler. Sources to B arriers to E ntry, Lim it Pricing
Theory, Strategic Entry deterrence, C ontestable markets.

U N IT 4 : V ER TIC A L IN T E G R A T IO N C O N G L O M E R A T E D IV E R S IF IC A T IO N &
M ER G ER S
Conglom erate D iversification : Concepts, m easures, d e te rm in a n ts a n d con seq uen ces of
diversification, M ergers, FDI
Vertical Integration : N a tu re a n d extent of vertical integration, th eories of vertical
integration, m onopolistic m otives for integration

U N IT 5 : T E C H N IC A L P R O G R E S S & PERFO R M EN C E
Econom ics of Research, M ark et stru ctu re and incentive to invent, C o n cep ts by A rrow ,
D em setz, S chu m p eter.
C oncepts of Profit m a r g i n s , P roductivity a n d Technical efficiency

M ain R e a d in g
1. Industrial Econom ics by R oger C larke

S u p p le m e n ta ry R ead in g s
1 S te p h en M artin, In d u strial Economics.
2 F erg u se n a n d F ergusen. Indu strial Economics.
3 Giles Burgess, In d u strial O rganisation.
4 S te p h en M artin, A d v a n ced Industrial Economics.
 S e m e s t e r - III
Pa p e r -3 0 3
B u s in e s s Fin a n c e

O b jec tiv e : T he co u rse aim s to p ro v id e basic concepts a n d k n o w led g e w ith re g a rd to a

b u sin e ss finance a n d its decisions.

U N IT I: IN T R O D U C T IO N
N a tu re, sco p e a n d objectives of financial m anag em en t. Tim e value of m o n e y a n d
m ath em a tic s of Finance. C o n cep t of Risk and return.

U N IT 2: IN V E S T M E N T D E C IS IO N
C apital b u d g e tin g process: Estim ation of Relevant cash flows, N o n -d isc o u n te d a n d
disco u n ted cash flow tec h n iq u e s - Pay back, ARR, NPV, IRR a n d P rofitability index.

U N IT 3: C O S T O F C A PITA L A N D F IN A N C IN G D E C IS IO N
C ost of C ap ital a n d Financing Decision: E stim ation of co m p o n en ts of cost of capital;
Equity cap ital a n d external & internal retained earnings, D ebt a n d Preference Capital,
W eig h ted a v e ra g e cost of capital (WACC) and m arginal cost of capital.
C apital s tru c tu re theories - NI, NOI, traditional a p p ro ach a n d M M a p p ro ach . Factors
d e te rm in in g capital structure.

U N IT 4: D IV ID E N D D E C IS IO N
R elation ship b e tw e e n d iv id e n d a n d corporate valuatio n - W alter m odel, G o rd o n M odel
a n d M M h y p o th esis. D e te rm in an ts of d iv id en d policy.

U N IT 5 :
(i) S o u rce s o f F in an ce
S h ort term sources: ad v a n c e s from com m ercial banks, public deposits,
a d v a n ces from cu stom ers a n d trad e creditors. Long term sources: shares, d e b e n tu re s and
long term lo an s etc.
(ii) Lease F in a n c in g
concept of leasing. T y p es of lease agreem ents. Difference b e tw e e n hire p u rc h a s e and
lease financing. A d v a n ta g e s a n d disad van tag es of leasing. Lease ev a lu atio n
(iii) M e rg e rs a n d A c q u is itio n s
R easons for m erg e rs a n d acquisitions. Types of m ergers. Financial con sid erations in
m erg e rs a n d acquisitions. Financial evalu atio n of m ergers a n d acquisitions. Benefits and
costs of m erg ers.

S u g g e s te d R e a d in g s:
J.C. V an H o rn e , Financial M an a g em en t a n d Policy, Prentice H all of India.
H . Levy a n d M. Sarnat, Principles of Financial M anagem ent, E n gelw oo d Cliffs,Prentice
Hall.
M. Y Khan, a n d P. K Jain., Financial M anagem ent, Text and Problem s, Tata
M cG raw Hill N e w Delhi.
R. S. K ulshrestha, Financial M anagem ent, Sahitya B hawan, Publishers an d
D istributors.
R. P. Rastogi, F u n d a m e n ta ls of Financial M anagem ent, G algotia P ublications,
N s w Delhi.
I. M. P andey , Financial M anagem ent, Vikas P ublishing H ouse (P) Ltd.
V.K. Bhalla, Financial M a n a g e m e n t & Policy, Anrnol Publications, Delhi
P rasa n n a C h an d ra , F inancial M anagem ent-T heo ry a n d Practice, Tata M cG raw
Hill.
V. Sharan, F u n d a m e n ta ls of Financial M an ag em en t, Pearson Education, India.
J. K Singh, F inancial M an a g e m e n t - Text a n d Problem s, D h a n p a t Rai and
C o m p an y , Delhi.
Dr. S.N. M ah esh w ari, Financial M anagem ent, principles a n d practice, S u lta n C h a n d a n d
Sons, N e w Delhi.
R.P. R ustagi, Fianacial M anag em ent, theory, concepts an d problem s, G algotia p u b lish in g
c o m pany, N e w Delhi.
 S e m e s t e r - III
Paper -3 0 4
B a s i c Ec o n o m e t r ic s

UNIT 1: SAM PLING A N D HYPOTHESIS TESTING

Statistics a n d p a ram eters. P ro perties for a statistic. C entral Lim it T heo rem . D is trib u tio n
of the sam p le m ean , difference in m ean s a n d the propo rtio n. P o in t a n d in terv al e stim a te s
for the m ean, difference in m eans, a n d p ro p o rtio n . H y p o th ese s testin g a n d ty p e s of
errors. Significance levels a n d p values. Small sa m p le testing: Chi sq u are, t a n d F
distrib u tio n s a n d th eir p roperties. A pplications of chi sq u are a n d t d is trib u tio n s to
interval estim ates a n d tests.

UNIT 2 : CLASSICAL TWO VARIABLE LINEAR REGRESSION MODEL

T yp es of D ata : T im e Series, C ross Section a n d Panel D ata. C o n cep t of PRF a n d SRF.
E stim ation of th e SRF using OLS. A nalysis of variance a n d R squ ared . U n d e rs ta n d in g
the re sid u a ls/e rro r term . A ssu m p tio n s of the m odel. E xpectation a n d s ta n d a r d e rro rs of
the regression coefficients a n d th e erro r term . G a u ss M arkov T heorem . C o nfid ence
intervals a n d tests o n p o p u la tio n regression coefficients, variance of p o p u la tio n
d istu rb an c e term , a n d forecasts. Testing the significance of the m o d el as a w hole. Testing
the n o rm ality assu m p tio n .

U N IT 3 : M U LTIPLE R E G R E S S IO N M O D B l
T he th ree v aria b le case. D erivatio n of the coefficients. C orrelation. A d d itio n a l
assu m ptio ns. A d ju ste d R square. C onfidence intervals a n d testing of the regression
coefficients. F a n d t tests for stru ctu ral stability, co n trib u tio n a n d justification of an
ex planato ry variable.

UN IT 4 : OTHER FUNC TIO NAL FORMS

R egressions in d ev ia tio n form a n d th ro u g h the origin. T he log-log, log-lin, lin-log,
reciprocal, log-reciprocal m o d els w ith application.

U N IT 5 : D U M M Y VARIABLES
Intercept, Slope D u m m y variables. Interaction b etw e en qualitative variables. Interaction
b e tw e e n q u an titativ e a n d qualitative variables. D u m m ies for testing for the p resen ces of
Seasonal T rends.

M ain Readings
1. C h risto p h e r D ou gh erty , Introductory Econometrics 3rd E dition O xford U niv ersity
P ress (2007)
2. G u ja r a ti, D a m o d a r : Basic Econometrics , 3rd ed itio n M c.G raw Hill, N e w Delhi (1995)
3. R am an ath an , R am u : Introductory Econometrics W ith A pplications. T h o m so n South
W estern (2002)
Supplem entary R eadings
1. P indyck ,R obert S. a n d Daniel L. Rubinfeld. "Econometric Models and Economic
Forecasts.”. M cG raw H ill, 3ra Edition, S ingapore (1997).
2. W onnacott, R.J. a n d W annacott, T.H: Econometrics , John Wiley. France

34
 S emester-IV
P a p e r - 401
M a c r o e c o n o m i c s - II

U N IT 1. T H E O R IE S OF C O N S U M P T IO N A N D IN V E ST M E N T
a) C o n s u m p tio n Functions
b) F isher's In ter-tem p oral Choice M odel
c) Life-Cycle a n d P erm an e n t Incom e H y p o th ese s
d) Business Fixed, R esidential a n d Inventory Investm ents
M an kiw (2005): C h ap ters 16 and 17**

U N IT 2. O P E N E C O N O M Y I - TH E C O N C E P T S
(a) Balance of P aym ents
(b) T ra d e Balance a n d Exchange Rates
D 'S ouza (2008): C h ap ers 2 and 5

U N IT 3. O P E N E C O N O M Y II -T H E M U N D E LL-FLEM IN G M O D EL
N. G regory M an k iw (2005): C h ap ter 12

U N IT 4 . E C O N O M IC G R O W T H
(a) Sources of G ro w th, Potential a n d Feasible O u tp u t
(b) The D e te rm in an ts of Long-R un G ro w th an d Soiow - A G eom etric P resen tatio n
(c) The G olden Rule, C onvergence a n d Poverty Traps
(d) E n d o g en o u s G ro w th
D 'S o u za (2008): C h ap ter 16

UMT 5. M O N E T A R Y A N D FISCAL POLICY

a) Inflatio n T arg etin g
b) T he D esign of M o n etary Policy
c) The G o v e rn m e n t B udget C onstraint
d) Issues in Fiscal Policy
B lanchard (2006): C h ap ters 25 a n d 26

S u g g e s te d R e a d in g s
1. D 'S ouza, E. (2008): "M acroeconom ics", Pearson Education: N e w Delhi.
2. Blanchard, O. (2006) : "M acroeconom ics" (IV,h Edition), P earson E ducation : N ew
Delhi.
3. N. G regory M an k iw (20G5)-Vlh Edition, M acroeconomics, W orth Publishers
 4. S em ester-IV
P a per - 402
O r g a n isa t io n a l B e h a v io u r

O b jectiv e:
To p ro v id e s tu d e n ts w ith a n u n d e rs ta n d in g of th e principles of h u m a n b e h a v io u r in
o rg a n isa tio n s w ith relevance to the In d ia n business context.

U N IT 1. IN T R O D U C T IO N
C o ncept of OB; M a n a g e m e n t roles, skills a n d activities; Disciplines th at c o n trib u te to OB;
O p p o rtu n itie s for OB (G lobalization, Ind ian w orkforce diversity, cu sto m e r service,
in n o v atio n a n d ch an ge, n e tw o rk e d organizations, w ork-life balance, p e o p le skills,
po sitive w o rk e n v iro n m e n t, ethics)

U NIT 2. IN D IV ID U A L BEH AVIOUR

(i) Learning, attitude and job satisfaction
C on cep t of learning, con ditio ning , sh ap in g an d reinforcem ent.
C on cep t of attitu d e , co m p o n e n ts, b eh a v io u r a n d attitude.
Job satisfaction: causation; im p act of satisfied em ployees on w orkplace.
C o m p ariso n of job satisfaction am o n g st In dian em ployees w ith o th e r cultures.

(ii) M otivation
Concept; T heories (H ierarch y of needs, X a n d Y, Tw o factor, M cC lelland, Goal setting,
Self-efficacy, Equity theory); Job characteristics m odel; R edesign ing job a n d w o rk
arran g em en ts; E m p lo y ee invo lvem ent; Flexible benefits, Intrinsic re w a rd s

(iii) Personality and V alu es

C o ncept of p erso n ality ; MBTI; Big Five m odel.
R elevance of values; In d ia n values;
L inking perso n ality a n d v alu e s to th e w o rkplace (person-job fit, p erso n -o rg ard zatio n fit)

(iv) Perception, D e c is io n M ak ing and Emotions

Perception a n d ju d g e m e n ts ; Factors; Linking percep tio n to in d iv id u a l decision m aking;
D ecision m a k in g in o rg a n iz atio n s, Ethics in decision m aking.
E m otional labou r; E m o tio n al Intelligence;

UN IT 3. GROUP BEH AV IO U R
(i) G ro u p s a n d W o rk T eam s: C oncept; Five stage m o del of g ro u p d ev e lo p m e n t; G ro u p
th in k and shift; In d ia n persp ectiv e on g ro u p norm s.
G ro u p s a n d team s; T y p es of team s; C reatin g team play ers from indiv id uals; Team
b u ild in g a n d team b a s e d w o rk (TBW).
(ii) Leadership
C oncept; T rait theories; B ehavioral theories (Ohio a n d M ichigan studies); C ontingency
theories ( Fiedler, H e rs e y a n d Blanchard, Path-Goal); A uth entic lead ersh ip; M entoring,
self-leadership, o n lin e leadership; Inspirational A p p ro a ch e s (transform ational,
charism atic); C o m p a ris o n of In d ia n leadership styles w ith o ther countries.
Exercises, g am e s a n d role plays m ay be conducted to d ev e lo p tea m a n d leadersh ip skills.

36
U N IT 4. O R G A N IS A T IO N A L CULTURE A N D STRU CTU RE
C oncept of culture; Im pact (functions and liability); C reating a n d su s ta in in g culture;
Em ployees a n d culture; C reatin g positive an d ethical cultures.
C oncept of structure; P rev a le n t organizational designs; N e w d esig n options.

U N IT 5. O R G A N IS A T IO N A L C H A N G E , C O N FLIC T A N D P O W E R
Forces of change; P la n n e d change; Resistance; A p p ro a c h e s (L e w in 's m odel,
O rg an isatio nal d evelo pm en t); Learning organization; O rganisation al ch a n g e in In d ia n
businesses.
C o ncept of conflict; T rad itio nal view and interactionists v iew of conflict; Conflict
process; F unctio nal/D y sfun ctio nal. Introduction to p o w e r an d politics

M a in R e a d i n g :
1. O rg an isatio n al B ehaviour by Stephen P. Robbins, T im o thy A. Ju d g e a n d Seem a Sanghi,
I3 ,h Ed, P earson E d ucation ltd.

S u p p le m e n ta ry R e a d i n g :
1. L u th a n s Fred., "O rg an izatio n al B ehaviour", M cG raw Hill.
2. Hellriegel, Slocum a n d W oodm an, O rg anisation al Behavior, South-W estern,
T h o m so n Learning, 9th edition, 2001.
3. B eh avio r In O rganizations, Jerald G reenberg, 8ih ed, P earson E ducation.
4. A rn o ld , John, R obertson, Ivan t. and C ooper, Cary, 1., "W o rk psychology:
u n d e r s ta n d in g h u m a n b e h a v io u r in the w orkplace", M acm illan In d ia Ltd., Delhi.
5. D w iv ed i, R. S., " H u m a n relations and org a n iz atio n al b ehavio ur: a global
p ersp ectiv e", M acm illan India Ltd., Delhi.
 S em ester-IV
P a pe r - 403
Q u a n t it a t iv e T e c h n iq u e s for M anagem ent

U N IT 1 : IN T R O D U C T IO N TO OPERATIONS RESEARCH, LINEAR P R O G R A M M IN G

(i) Introduction
M ean in g, Scope, T echn iques, Relevance a n d Lim itations of o p eratio n al research, M ea n in g
of a m o del, s te p s in b u ild in g of a m odel.
(ii) Linear Program m ing
L inear In tro d u c tio n , te rm in o lo g y a n d applications, M athem atical fo rm u la tio n of a linear
p ro g ra m m in g p ro b lem , G raphical solution, A lgebraic m eth o d (Sim plex m eth o d ) -
M ax im isatio n a n d m in im iz a tio n cases ( single a n d m ix ed constraints), D u a lity : C oncept
a n d In terp reta tio n

UN IT 2 -.TRANSPORTATION & A SSIG N M E N T

(i) Transportation
In tro d u ctio n , M atrix F o rm u la tio n and balance check of a tra n sp o rta tio n p ro b lem , Initial
basic feasible solu tio n ( only LCM & V AM m ethods), Test of o p tim a lity a n d optim al
solution, S te p p in g S tone a n d M ODI m ethods)
N o te : E xclude special cases i.e. m ultiple o p tim u m solution, m axim izatio n, d egeneracy
a n d p ro h ib ited routes.
(ii) A ssig n m en t
In trod uction, B alanced a n d u nb alan ced assig n m en t prob lem , S olu tion u s in g H u n g a ria n
a ssig n m en t m eth o d .

U N IT 3 : D Y N A M IC PRO G R A M M IN G
M eaning, applications. C o n stru ctio n a n d p ro b lem solving in stages (in clu d in g
d ete rm in istic a n d b u t ex c lu d in g probabilistic p ro g ram m in g )

U N IT 4 : THEORY OF GAM ES, DECISION THEORY A N D DE CISIO N ANALYSIS

(i) Theory o f G am es
In tro d u c tio n a n d basic term inology, Pure strategy gam es ( in clu d in g iden tification of
s a d d le p o in t a n d valu e of the gam e), Principle of d o m in ance. M ixed stra te g y g am e s (only
arith m etic m e th o d for 2 x 2 gam es)
(ii) D e c isio n theory aitd D e cisio n Analysis
S teps in D ecision th eo ry , C oncepts of Expected M o n etary Value, E xpected V alue of
Perfect In fo rm a tio n a n d Expected O p p o rtu n ity loss, In tro d u c tio n to risk a n d uncertainty,
D ecisions u n d e r U n c ertain ty using Laplace, rnaxim in, M inim ax, m axim ax, m inim in,
h u rw ic z a n d Savage M eth o d s

U N IT 5 : CPM/PERT ANALYSIS, SIMULATION, SIMPLE INVENTO RY MODELS

(i) CPM / PERT A n a ly sis
M eaning, objectives a n d applications, F u n d am en tal concepts - event, activity, path,
d u m m y activity, fu lk erso n 's rule, N e tw o rk construction, Tim e estim ates in netw ork
analysis -e a rlie s t finish, latest finish, critical path, Float (In d e p e n d e n t , free a n d total
float), P ro g ra m m in g E valu atio n review technique (PERT) - th ree tim e estimates,
S ta n d a rd d e v ia tio n a n d probability of project com pletion w ithin a sch e d u le d rime, Direct
 a n d indirect cost, T im e-cost tradeoff - C rashing of activities ( m e th o d , n e tw o r k
construction, identification of crash time, n ew critical p a th a n d activities to b e crash ed ).
(ii) S im ulation
In tro d u c tio n a n d applications, P roblem Solving using M onte C arlo m e th o d a n d R a n d o m
n u m b ers.
(iii) S im p le Inventory M od els
Finite a n d Infinite R eplenishm ent, Sim ple EOQ.

M ain R eadin gs
1. K a p o o r V.K. Operations Research : S ultan C han d & Sons, Latest Edition
2. V oh ra N .D . Quantitative techniques in management 3rd Ed , Me. G ra w H ill Co.

S u g g ested R e a d in g s :
1. S w a ru p Kanti, G u p ta, P.K. & M an m o h an , Operations Research 12th E ditio n S ultan
C h a n d a n d Sons.
2. T a h a , H .A Operations Research : A n Introduction , 7th Edition. P earso n E d u ca tio n
 S e m e s t e r - IV
Pa p e r - 404
In d ia n Fin a n c ia l S ystem

U N IT 1 : FINANCIAL MARKFTS I N IN D IA
Role a n d Im p o rta n ce of Financial M arkets, Financial M arkets vs. C ap ital M ark ets vs.
Stock M arkets, L inkages B etw een E conom y a n d Financial M arkets, In te g ra tio n of In d ian
Financial M ark ets w ith W o rld M arkets, Players in Financial M arkets, Role of R eg u lato r
(RBI a n d SEBI)

U N IT 2 : PRIMARY MARKET FOR CORPORATE SECURITIES IN IN D IA

(i) Issue o f Corporate Securities
Public Issue th r o u g h P rospectus, G re en shoe option, Offer for sale, P riv a te Placem ent
R ights Issue, O nL ine IPO : D u tch a n d French A uction , Book B u ild in g of Shares,
D isin v estm en t of PSU, E m ployees Stock O ptions, Preferential Issue of Shares, V e n tu re
C apital, P riv ate Equity, P erform an ce of P rim ary M arket in India, In stitu tio n al Interest
in P ublic Issues, m ea su rin g success of a n IPO.
(ii) Corporate Listings
Listing a n d D elisting of C o rp o ra te Stocks

U N IT 3 : SECO N DARY MARKET IN IN D IA

(i) Introduction to Stock Markets
R egional a n d M o d e rn Stock Exchanges, In ternational Stock Exchanges, D e m u tu a liz atio n
of exchanges, C o m p etitio n am o n g st m ajo r exchanges in India, R aisin g of fu n d s in
In tern atio n al M ark ets : AD R s a n d GDRs, FCCB a n d Euro Issues
In d ia n Stock Indices a n d th e ir construction, free float vs. full float m eth odo logy ,
C lassification of Securities to b e in c lu d e d in the Index, im p a c t of co rp o rate actions
(rights, b o n u s a n d stock split) o n index
Bulls a n d Bears in Stock M arkets, F actors influencing the m o v e m e n t of stock m arkets,
in d icato rs of m a tu rity of stock m arkets. M ajor In stru m ents tra d e d in stock m arkets:
E qu ity Shares, D ebentu res, M y th s attac h ed to Investing in Stock M arkets.
(ii) T rading o f securities on a stock exchange
S election of bro ker, capital a n d m a rg in re q u irem en ts of a broker, M TM a n d VaR M argins
,k in d s of brokers, o p e n in g of an ac co u n t to tra d e in securities, D E M A T System , placing
a n o rd e r for p u rc h ase/sale of shares, m a rg in trad in g and m arg in a d j u s t m e n t , contract
note, a n d settlem en t of c o n tra c ts , rolling a n d traditional (w eekly) settlem en t system s.

U N IT 4 : M O NEY MARKETS & DEBT MARKET IN INDIA

(i) M o n ey Market
M e a n in g , role a n d p artic ip a n ts in m o n ey m arkets, Segm ents of m o n e y m arkets. Call
M o n ey M arkets, R epos a n d reverse R ep o concepts, T reasury Bill M arkets, M arket for
C om m ercial Paper, C om m ercial Bills a n d Certificate of D eposit. Role of STCI a n d DFHI
in m o n e y m ark ets
(ii) D e b t Market
In tro d u c tio n a n d m ean in g, M arket for G o vernm ent/D ebt Securities in India, W hen issued
m ark et, S econdary m a rk e t for g o v e rn m e n t/d e b t beeurities, O v e rsu b scrip tio n and
d ev o lv e m e n t of G o v e rn m e n t Securities, Fiscal R esponsibility Act, Switch deals,

40
 G o v e rn m en t securities issued by State G overnm ents, M u n icip al Bonds, C o rp o ra te B o n d s
vs. G o v e rn m en t B onds

UNIT 5 : B A N K IN G A N D H O U SIN G FINANCE IN IN D IA

/:\r> 13 r
Vi;rv.ul

Functions, Role a n d M o n etary Policy M easures( CRR,SLR, OM O)

(ii) Recent D e v elo p m en ts in B anking Sector in India
C om m ercial a n d D e v elo p m en t Banks: M ean in g , their roles (T raditional a n d N e w
/C h an g in g roles), C halleng es A head, C o nv ersio n of Financial In stitu tio n s in to banks,
M ergers a n d A cqu isition s in the b an k in g sector in India , C o ncept of U n iv ersal B anking,
N o n P erfo rm in g A ssets in the B anking Sector, the Securitization Act, P rim e a n d Sub
Prim e L e n d in g Rate.
(iii) H o u sin g Finance
M ean ing a n d rise of h o u sin g finance in India, Fixing the a m o u n t of loan, re p ricin g of a
loan, floating vs. fixed rate, the rest m ethod, p rob lem s on h o usin g finance.

Suggested R e a d in g s :
(i) N a tio n a l Stock Exchange of India 'Indian Securities Market: A Review' 6<h Edition
NSE, M u m b a i (2003).
(ii) R u s ta g i, R.P, Financial M anagem ent: Theory Concepts and Problems : 3rd E dition
G algotia P u blishin g Co. (2006)
(iii) S.G. Eakins, S.G. 'Finance: Investments, Institutions and Management'., A d d is o n
W esley L o n g m a n Inc, USA. (1999)
(iv) S hahani, R akesh 'Financial Markets in India’ Latest Edition, A n am ica P ub Co, N ew
D elhi
 S em ester - V
Pa per -5 0 1
In d ia n Ec o n o m y

U N IT 1: IN D IA F R O M IN D E P E N D E N C E T O LIB ER A LIZA TIO N

A n o v erv ie w of the econom ic d ev e lo p m e n ts d u rin g the period 1947-1980; O bjectives a n d
strategies of p la n n e d econom ic d ev e lo p m e n t a n d the role of the State; S lo w d o w n in
g ro w th since m id 1960; C h a n g e s in policy em p h a sis from g ro w th to d istrib u tio n ; G reen
revolution.
R ead ing s:
1. A rv in d S u b ra m a n ia n (2007), G ro w th Experience, in K aushik Basu (ed), T he O xford
C o m p a n io n to Econom ics in India, OUP, Delhi, pp. 231-236. (2008 ed itio n m a y be
also be used).
2. T.N. S rin iv asan a n d S.D. T en d u lk a r (2003), R eintegrating India w ith the W orld
Econom y, O UP, D elhi, C h a p te r 1, 2 (pp. 11-27)

U N IT 2 : IN D IA S IN C E 1980S (LIB ER A LIZA TIO N A N D BEYOND): O V E R V IE W

India Circa 1980. Policy C h a n g e s since 1980s. The 1990 Crisis. W hy Liberalization?
C auses a n d Effects. R egional differences. In d u stry a n d Firm size. M a n u factu rin g an d
Services. Institu tions a n d Infrastructure.
R eadin gs:
1. A rv in a DUDiaAiiicuUciii ouj, i^icila ^ * u.... the ^cop-onnc
T ran sform ation , O x ford U niversity Press (OUP), Delhi, 2008, C h a p te r 2.
2. T.N. S rinivasan a n d S.D. T en d u lk a r (2003), R eintegrating India w ith the W'orld
Econom y, O UP, C h a p te r 2 (pp. 27-47).

U N IT 3 : M A C R O T R E N D S S IN C E 1990
G row th, Savings a n d In v e stm e n t, Populat ion, E m ploym ent, R egional differences,
M o n etary a n d Financial tre n d s
R ead in g s:
1. R akesh M o h an (2008), G ro w th Record of th e In d ian Econom y, 1950-2008: A story of
S ustained Savings a n d Investm ent, EPW, M ay 10.
2. K .V .R am asw am y (2007), Regional D im ension s of G ro w th a n d E m p lo y m en t, EPW,
Dec 8.
3. T im D y son (2008), In d ia 's D e m o g rap h ic T ransition a n d its con seq uen ces for
D e v elop m en t, p a p e r p re se n te d a t IEG (Third Lecture in the G o lden Jubilee Series)
M ar 24.
4. M ihir R ak shit (2009), In d ia am id st th e G lobal Crisis, EPW M arch 28.
5. N ote: R ead in g s 1,2 a n d 3 are also available in U m a Kapila (ed) In d ia 's Economic
D e v e lo p m e n t Since 1947. A cadem ic F ou ndation , Delhi, 4 th ed itio n 2009-10

U N IT 4: IN D IA N A G R IC U L T U R E SIN C E 1990
Post G reen R evo lution agricu lture; P ro d u ctio n a n d p rodu ctiv ity crisis in agriculture;
Regional differences; F o o d Security, PDS sy stem a n d M alnutrition.
R eadings:
1. R am esh C h an d , S.S. Raju, L.M. P an dey (2007), G ro w th Crisis in A g ricu ltu re -
Severity a n d O p tio n s at N a tio n a l and State Levels, EPW, June 30.
 2. B harat R am asw a m i (2007), Public D istribu tion System in K aushik B asu (ed), T he
O xford C o m p an io n to Econom ics in India pp.430-33
3. R. R ad h ak rish n a (2005), F ood an d N u tritio n Security of the Poor, EPW, 30 A pril

Note: Readings 1 and 3 are also available in lima Kapila (ed) India's Economic Development Since
1947. Academic Foundation, 4th edition 2009-10.

U N IT 5:
(a) In d u stry , F oreign T rad e A n d Foreign C apital Since 1990.
(b) Role of Services a n d Infrastru cture in Econom ic D ev elo p m en t
R eadings:
1. R. N ag araj (2008), In d ia's Recent Econom ic G row th: A closer look, EPW, A p r 12.
2. P ulin N a y a k (2007), P rivatization, in K aushik Basu (ed), The O xford C o m p a n io n to
Econom ics in India, pp. 426-30.
3. N a g e s h K u m a r (2005), Liberalization, FDI flow s a n d D evelopm ent, EPW, A pr. 2
4. J. A lh u w a lia (2006), T ra d e Liberalization a n d In du strial P erform ance: A
D isag g reg ated V iew of In d ian M an u factu rin g in the 1990s, in S uresh T e n d u lk a r et.
al. (eds.) India: Ind ustrializatio n in a R eform ing Econom y, A cadem ic F o u n d atio n ,
Delhi.
5. Jim G o rd o n a n d P oonam G u p ta (2003), U n d e rs ta n d in g India's Services R ev olu tio n
p a p e r p re sen ted in IM F-NCAER C onference 2003, A Tale of T w o Giants: In d ia's and
C h in a 's E xperience w ith Reform, (excluding Section V) N o v e m b e r 14-16, 2003, N ew
D elhi (w w w .im f.o rg /ex tern a l/n p /a p d /se m in a rs/2 0 0 3 /n e w d elh i/g o rd o n .p d f) C an be
d o w n lo a d e d from the website.
6. Sebastian M o rris (2007), Infrastructure, in K a u sh ik Basu (ed), The O x ford
C o m p a n io n to Econom ics in India, pp.291-96.

S om e background reading for the teachers:

T opic 1
1. A rv in d S u b ra h m a n ia n (2008), India's Turn: U n d e rs ta n d in g the Econom ic
T ran sform ation, O xford U niversity P ress (OUP), Delhi, 2008, C h a p te r 1.
2. S. C h a k ra v a rty (1987), D evelop m en t P lanning: T he In d ian Experience, C lare n d o n
x Press, C h a p te r 1,2,3.
Topic 2
1. T.N. S rinivasan and S.D. T en d u lk a r (2003), R eintegrating India w ith th e W orld
Econom y, OUP, C h ap ter 5
2. Jean D reze a n d A m artya Sen (2002), India: D ev elo p m en t a n d Participation, OUP,
Chs. 2, 9.
T o p ic 4
A sho k G ulati a n d S henggen Fan, The D ra g o n a n d the Elephant: A gricultural a n d Rural
R eform s in India a n d China, C h ap ter 1 (Introdu ctio n a n d O verview ).
 S em ester - V
Pa per -502
Com pu t a t io n a l T e c h n iq u e s FO R BUSIN ESS E C O N O M IC S

U N IT 1 : U S F O F OEFJC F SO ETW A RE
W o rd p rocessing, S p re a d sh e e t basics, D atab ase basics, P resentations.

U N IT 2: U SE O F S P R E A D S H E E T S F O R D A T A ANALYSIS
Im p le m e n ta tio n of all statistical w o rk in P ap er 102 th ro u g h sp re a d s h e e t
U se of m acros a n d a u to m a tio n of rep eated data w o rk

U N IT 3 : E C O N O M E T R IC P R O B L E M S O L V IN G
U se of SPSS a n d SAS so ftw are packages to im p le m en t the eco nom etric te c h n iq u e s
ta u g h t in P a p e r 304

U N IT 4: L IN E A R P R O G R A M M IN G A N D M A T H E M A T IC A L P R O B L E M S O L V IN G
U se of a p p r o p ria te m ath em a tic al softw are package for lin ear p ro g r a m m in g p rob lem s
a n d for

U N IT 5 : D A T A SETS
In tro d u c tio n to real eco no m ic a n d business d ata sets. W o rkin g o n real p ro b le m s an d
p re p a ra tio n of a project report.

N otes:

1. The p a p e r is of 100 m a rk s like o th er papers. The ev aluation shall b e based o n the

fo llo w in g :
• 25 m a rk s for teacher's assessm ent b ase d o n atten dance a n d lab record.
• 25 m ark s fo r practical exam ination; joint evaluation
• 50 m ark s fo r v iv a voce; external evaluation

2. For each c o m p u ta tio n b ase d project, one teacher from the college shaii act as guide.
The project is to b e d e c id e d a t th e b eginn ing of th e sem ester.

S u g g e s te d R eferences:
1. M a n u a ls fo r th e re le v an t softw ares
2. D ata Sets: C en su s of India, N atio nal Sam ple Survey, Index of a slock exchange,
W ages a n d P ro d u ctio n , CMIE.

44
 S em ester - V
O p tio n a l G ro u p F: P a p e r - 511
In v e s t m ent M anagem ent

O bjective:
T he course aim s to a c q u a in t the s tu d e n ts w ith the essential of In v e stm e n t M a n a g e m e n t a n d
to e q u ip them w ith essential tools for the same.

U N IT 1 : B O N D M A N A G E M E N T
B ond Basics, C oncept of a yield , V aluation of Bonds ,D ifferent w ay s of C o m p u tin g Yield
(C u rrent yield, h o ld in g yield a n d Yield to m aturity (YTM)), yield curve, Basic T h eo rem s
of Bond V aluation a n d T erm S tructure. Risk In Bonds, Interest rate a n d d e fa u lt risk , Risk
S tructure of Interest Rates, B ond D uration, M odified D u ra tio n . Bond C onvexity,
Im m u n iz a tio n a n d R ebalancing of B ond Portfolios

U N IT 2 : M A R K ET EFFICIENCY
(i) M a rk e t Efficiency
M ean in g a n d form s of m ark e t efficiency , The R andom W alk M odel, Security A nalysis
(O verview of F u n d a m e n ta l a n d Technical Analysis)
(ii) D iv id e n d D is c o u n t M o d el
O ne, tw o a n d M ulti Stage G ro w th M odels, Price Earnings A pp roach 10 stock valuation.

U N IT 3 : P O R T F O L IO T H E O R Y
C oncepts of Risk a n d R eturn, M ean V ariance Fram ew ork, M ark o w itz M odel an d M o d e rn
Portfolio Theory, P ortfolio D iversification Concepts, Single Index M o d e l , Beta of a stock,
S ystem atic a n d U n sy stem atic R is k , SML, C M L , m arket m odel a n d CAPM .

U N IT 4 : M U T U A L F U N D S
In troduction, C alculation of N A V of a Fund, Classification of M u tu a l F u nd Schem es
(O p e n e n d & closed e n d , incom e & g ro w th schemes, sectorial schem es, index Schemes,
F u n d of F un ds Schem es) T racking Error, Tactical A sset A llocation a n d Portfolio
R ebalancing
M easu rin g P erfo rm ance of m u tu a l fu n d schem es (S&P Risk A d ju ste d Ratio, Sharpe,
Treynor, a n d Jenson, In fo rm ation a n d M 2 Ratios), core-satellite portfolio fram ew ork,
D iversification vs. asse t allocation, b en ch m ark in g m u tu al fu n d perform an ce, Portfolio
M a n a g e m e n t Service(PMS)

U N IT 5 : D ER IV A TIV ES:
M ean in g a n d T ypes ,Stock Futures, C o m m o d ity Futures, Interest rate futures, H ed g in g
th ro u g h fu tures a n d payoffs, O p tion s , In the m oney, At the M on ey a n d O u t of M oney
O ptions, O p tio n P ayoffs ,F o rw ard s a n d its difference w ith futures, Sim ple Futures an d
O p tion s C om b in atio n S trategies (N eutralising the risk. S pread ,S trad d le ,Collars, C overed
call, and P u t Call Parity), factors affecting o ption prem iu m , o p tio n pricin g m odel ( only
tw o stage bino m ial m o d e l ), S w ap s (Interest rate an d currency sw aps).
M ain R eadin gs
1. Brealey, R a n d S.C.M yers, Principles of Corporate Finance; 6lh E d itio n Me. G ra w Hill,
N e w Y ork (2000).
2. C h a n d ra , P rasa n n a Financial Management, Latest Edition Me. G ra w Hill, N e w Delhi.
3. K han, M.Y 'Indian Financial System ' Latest Ed.. Tata M e G ra w Hill, N e w Delhi.
4. N a tio n a l Stock Exchange of India ‘Indian Securities Market: A Review' 6lh Edition NSE,
M u m b a i (2003).
5. R u stagi R.P, Investment M anagem ent: Theory and Practice:: 2nd E ditio n S u ltan C h a n d
a n d Co. N e w Delhi(2007).
6. S.G. Eakins, S.G. ‘Finance: Investments, Institutions and M anagem ent'., A d d is o n W esley
L o n g m a n Inc, USA. (i999)
7. S ha’n ani, R akesh 'Financial Markets in India' 2nd Edition, A n am ica P ub Co, (2008)

S u p p lem en tary R e a d in g s :
1. S c h a u m 's O u tlin e Series, Theory and Problems o f Investments : Latest E dition , Me. G raw
Hill
2. S in g h P r e e ti , Fundamentals of Investment M anagem ent, H im alay a P ub lishin g
H ou se, (2006)

46
 Semester - V
O p tio n a l G ro u p M: P a p e r - 5 2 1
Consum er B e h a v io u r

O bjective
To p ro v id e s tu d e n ts w ith a u n d e rs ta n d in g of the psyche of a typical c o n s u m e r a n d its
application to the In d ia n context.

U N IT 1. IN T R O D U C T IO N
Scope of co n su m e r b ehaviour; M ark etin g concept a n d c o n su m er b eh a v io u r; C u sto m e r
value, satisfaction a n d retention; M ark etin g ethics a n d social responsibility; M od el of
consu m er decision m aking; C o n su m e r research p arad ig m s a n d c o n s u m e r research
process.

U N IT 2. C O N S U M E R AS A N IN D IV ID U A L
(i) P e rs o n a lity a n d C o n s u m e r B eh av io u r
Theories of personality; P ersonality a n d co n su m er diversity; B rand perso n ality ; Self an d
self im age; V irtual personality.
(ii) C o n s u m e r P erc ep tio n
Elem ents a n d d y n am ics of perception (Sensation, A bsolute a n d D ifferential threshold,
S ublim inal p erception, Perceptual selection, org anization an d in terp retatio n); C o n su m e r
im agery.
(iii) C o n s u m e r L ea rn in g
Elem ents of C o n su m e r learning, B ehavioural learning theories (Classical, In stru m ental,
O bservational); C ognitive learning th eory (Inform ation processing a n d Inv olv em ent
theory); R ecog nitio n an d recall m easures.
(iv) C o n s u m e r A ttitu d e
N atu re; S tru ctu ra l m odels; A ttitu d e form ation; A ttitu d e change strategies; C ognitive
d issonance theory; A ttrib utio n theory.

U N IT 3. C O N S U M E R S IN SO C IA L S E T T IN G S
(i) R eference G ro u p s a n d F am ily In flu e n ces
P o w er of reference groups; T ypes (Friendship, S hopping, W ork, V irtual a n d C o n su m er
action gro up s); Reference g ro u p app eals a n d celebrities; Socialisation of family; Functions
of family; F am ily decision m aking.
(ii) Social C lass
Class, S tatus a n d categories; A ffluent consum ers; M idd le Class; W o rk in g class and non
affluent con sum ers; C o n su m e r b eh a v io u r ap plicatio ns of social class.

U N IT 4. C U LTU R E A N D C O N S U M E R B E H A V IO U R •
N e e d s a n d culture; C u ltu re is invisible; Learning a n d culture ( Sym bolism , Enculturation
a n d A cculturation, Rituals); M ea su rem en t of culture (content analysis, fieldwork, value
m e a su re m e n t s u rv e y instrum ents); S u bcu ltu res (nationality, religious, geographic, racial,
age a n d g e n d e r subcultures)
UNIT 5. C O N SU M E R DECISIO N M A K IN G PROCESS
(i) O p in io n Leadership and D iffu sio n o f Innovations
O p in io n leadership: Process a n d m o tiv a tio n beh in d it; Profile of o p in io n leaders;
F requency, o v e rla p a n d situatio nal en v iro n m en t; A pplication to m a rk e tin g strate g y .
D iffu sio n of innovations: Process; A d o p tio n process; Profile of co n su m e r in n o v a to rs.
(ii) C onsum er D e cisio n m aking
Levels; M odels; G ifting b eh av iou r; C o n su m in g a n d possessing; R e la tio n sh ip m ark e tin g .

N o te : T each in g m u st incorporate d iscu ssion s of concepts w ith cases and ad vertisem en ts

in the Indian context.

M ain R e a d in g :
C o n s u m e r B eh av io u r b y L eon G. Schiffm an & Leslie L azar K anuk, 8th ed., P earson
pu blication s
S upplem entary R e a d in g s :
1. C o n s u m e r B eh aviou r b y H aw k ins, Best a n d Coney, 9th ed, Tata M cgraw H ill.
2. C o n s u m e r B ehav io ur in In d ia n P erspective b y Suja Nair, H im aly a pu blishers.
3. C o n cep tu a l Issues in C o n s u m e r B ehavio ur by S R am esh K um ar, P e a rso n P ublication.
4. C u s to m e r B ehaviour: A M anagerial Perspective by Sheth a n d M ittal, T h o m s o n
P ublication

48
 Sem ester - V
O p tio n a l G ro u p Q: P a p e r - 531
A dvanced Ec o n o m e t r ic s,

O bjective
To b u ild u p o n basics of econom etrics a n d equ ip the s tu d e n ts w ith advanced
m eth o d o lo g ies in econ om etrics to m ak e them efficient analysts a n d researchers.

U N IT 1 : R ELAXING T H E A S S U M P T IO N S O F TH E C LASSICAL L IN E A R M O D E L
M ulticollinearity: T he prob lem . Detection. Solution.
H eteroscedasticity: T h e p roblem . Detection. Solution. GLS.
A uto co rrelatio n: P roblem . Tests for detection. Solutions.
Specification Errors: O m issio n of a variable, Inclusion of irre lev an t variable, tests for
d etecting errors, erro rs in exp lan ato ry and d e p e n d e n t variable

U N IT 2 : S IM U L T A N E O U S E Q U A T IO N M ODELS:
T w o Stage Least S q uares A n d The Indirect least squares techniques. A pplication s.

U N IT 3 : TIM E SERIES M O D ELS:

S tationary a n d N o n S tationary tim e series , U nit root tests, the R a n d o m W alk, M oving
A v e rag e a n d W hite N oise, Static a n d D y nam ic m odels, a d a p tiv e expectations and
p artial ad ju stm e n t m odels.

U N IT 4 : B IN A R Y D A T A .AND LIM ITED D E P E N D E N T VARIA BLE M O D E L S

Q u alitativ e R esponse a n d Lim ited D e p e n d e n t Variable M odels (LPM, Logit a n d Probit
M odels) M a x im u m Likelihood Estimator.

U N IT 5 : PANEL D A TA
Fixed a n d R a n d o m Effects

M a in R e f e r e n c e s :

1. G ujarati , D a m o d a r : Basic Econom etrics , 3rd edition M cG raw Hill, N e w Delhi

(1995)
2. C h risto p h er D o u g h e rty , Introductory Econometrics 3rd E ditio n O xford U niversity
Press (2007)
3. P in dyck ,R obert S. and Daniel L. Rubinfeld. "Econometric Models and Economic
Forecasts.". M cG raw H ill, 3-d Edition, Singapore (1997).
 S em ester V
O p tio n a l G r o u p E: P ap er- 541
In t e r n a t i o n a l Ec o n o m ic s

U N IT 1 : IN T E R N A T IO N A L T R A D E T H E O R Y
Basis a n d th e G ain s fro m T rad e
A bsolute A d v a n ta g e th eory, L aw of co m p a rativ e ad vantag e, O p p o rtu n ity C o st T heory,
P ro d u ctio n Possibility C u rv e w ith o p p o rtu n ity costs a n d relative c o m m o d ity price, The
basis for a n d gain s from tra d e u n d e r co n stan t costs.
P ro d u c tio n P ossibility C u rv e -w ith increasin g costs, C o m m u n ity in d ifferen ce curve,
eq u ilib riu m in isolation, G ain s fro m T ra d e w ith increasing costs, G ains fro m e x c h an g e a n d
specialization.
The E q u ilib riu m R elative C o m m o d ity Prices w ith - Partial E q u ilib riu m A nalysis, O ffer
curves, T h e E q u ilib riu m R elative C o m m o d ity Prices w ith - G eneral E q u ilib riu m A nalysis,
R elation ship b e tw e e n G eneral a n d P artial E q uilib rium Analyses, T e rm s of trad e .
R e a d in g :
S alv ato re-Internation al Econom ics-8th Edition, C h a p te r 4, C h a p te r 3 w ith o u t A p p e n d ix
H o w e v er, A p p e n d ix : A4.1, A4.2, A4.3, A4.4 o n D eriv ation of T ra d e Indifference C u rv e s can
be tre a te d as O p tio n a l reading.

U N IT 2 : F A C T O R E N D O W M E N T A N D H E C K S C H E R O H L IN T H E O R Y
A s s u m p tio n s o f th e th eo ry , In terp reta tio n or H eckscher O h iin T heorem , G e n era l eq u ilib riu m
fra m e w o rk of H eckscher- O h lin Theorem , D iag ram m atic p re sen tatio n o f th e theo ry, Factor
price eq u a liz a tio n a n d incom e d istribu tio n, Leontief p arad o x a n d Factor Reversal
R e a d in g
Salvatore-Ir.tem ationai Econom ics-8tn Edition [C hapter 5 a n d its A p p e n d ix o th e r th a n A5.4]
N e w T ra d e T h e o r ie s , Technology, skill, p ro d u c t differentiation
[Sections 6.1, 6.2, 6.3, 6.4A, 6.4B a n d 6.5, 6.5A, 6.5B o f C h ap ter 6] S alvatore-In tern ation al
Econom ics-8th E dition __ ______________ ___

U N IT 3 : IN T E R N A T IO N A L T R A D E POLICY
A: Tariff
D efinition, Types, Partial eq u ilib riu m analysis of a tariff, Effects of a tariff o n c o n su m e r an d
p ro d u c e r su rp lu s, C ost a n d benefit analysis of tariff, Rate of effective protection.
R e a d in g
[Sections 8.1, 8.2, a n d 8.3A of ch ap ter 8]
S alv ato re-International Econom ics-8th Edition
B: N on-T ariff B arriers a n d the N e w P rotectionism
Im p o rt Q uotas, c o m p a riso n w ith tariff, V o lu n tary E xport Restraints, Technical
A d m in istrativ e a n d o th e r regulations, Intern atio nal cartels, D u m p in g , E x p o rt S ubsidies
R e a d in g
[Sections 9.1, 9.2, 9.2A, 9.2B, 9.3, 9.3A-9.3E of C h a p te r 9]
S alv atore-In ternational Econom ics-8th Edition

50
U N IT 4. N E W T O P IC S IN IN T E R N A T IO N A L TR A D E
A .Intern atio nal C apital Flows, C apital flow s u n d e r laissez faire, W elfare analysis
B.Extension of K e ck sh er - O h lin T ra d e theory- M any good and m a n y factors ex ten sion
C .Im m iserising G ro w th a n d T ransfer P roblem
D. Foreign In v e stm e n t w ith special reference to D eveloping countries
R e a d in g
1 .Lectures o n In tern atio n al T rade-Jagdish B hagw ati, T.N. Srinivasan: M IT Press
2. W .M .C ord en T rad e P olicy a n d Welfare. C laren d o n Oxford

U N IT 5. W O R L D T R A D E O R G A N IZ A T IO N
GATT a n d T ra d e L iberalization, GATT to WTO, Objectives, functions, basic prin ciples a n d
areas of o p eratio n of WTO, S tructure and w o rk in g of the WTO, a n o v erv ie w of M inisterial
conferences: issues, decisions a n d controversies, D oha D e v elo p m en t A g en d a, W TO an d
agriculture, Im plications of W TO activities for dev elop in g countries, W TO a n d India.
R e a d in g
1. C o n te m p o ra ry Issu es in G lobalization-A n In trodu ctio n to T h eory a n d Policy in
India-(O U P) S o u m y en S i k d a r , C hapters- 6 a n d 7
2. w w w .w to .o rg
 S em ester - V
O ptional G roup P: Paper 551
Project M anagem ent

UNIT 1 : IN T R O D U C T IO N .
Project Identification, g en e ratio n of ideas, Project screening a n d m e a s u r e m e n t of
perform an ce, Project Cycle, Feasibility studies a n d form ulatio n of a project, P roject p lan n in g ,
M ark et a n d Technical A nalysis.

UN IT 2 : FINANCIAL ANALYSIS USIN G D IS C O U N T IN G A N D N O N D IS C O U N T IN G

TECHNIQUES
A ccou nting rate of re tu rn , Pay Back, NPV, IR R ,B C R /P I: M erits a n d D e m e rits of each, N P V
vs. IRR : Pitfalls, N o IRR, M u ltiple IRR, Increm ental IRR, the C hoice b e tw e e n N P V a n d IRR,
Specific project d ecisio ns like Equivalent A n n u a l Value, U n e q u a l L ives of Projects,
A d ju stm en t for Inflation, Projects w ith Resource C o nstraint etc

UNIT 3 : IN C O R PO R A TIN G RISK IN PROJECTS

C on v en tio n al Tools to h a n d le risk: Risk A d ju s te d D iscount Rate, C erta in ty Equivalent,
Sensitivity Analysis.
Statistical Tools of in co rp o ratin g risk: P robability, S tan dard D e v ia tio n a n d coefficient of
variation, P robability D istrib utio n (including d ep e n d en t, in d e p e n d e n t a n d decisio n tree
techniques ) Project te rm in a tio n a n u . A . D a R u G i - ^ n r i l y s i s .

UN IT 4 : INTERMEDIARIES, ARRANG EM ENT OF F U N D S A N D PROJECT

M A N A G EM E N T
M ea n in g a n d role of m erc h an t/in v estm en t b a n k s as interm ediaries in project m an ag em en t,
functions p erfo rm e d b y in v estm en t banks. P erfo rm an ce of these b a n k s o v er th e years. India
G ro w th Story a n d Rise of M erchan t Banking in India, Im pact of th e su b p rim e crisis o n
m erc h an t a n d in v e stm e n t banks.

UNIT 5:
Exercise on W riting o f the Project Report
\
S u ggested Readings

1. Brealey, R a n d S.C.Myers, Principles o f Corporate Finance; 6lil E d itio n Me. G raw Hill,
N e w Y ork (2000).
2. C h an d ra , P ra s a n n a Projects P lanning A nalysis Selection , Im p le m e n ta tio n and
R eview Latest E dition Me. G raw Hill, N e w Delhi.
3. G o p a lk rish n a n P & V.E. R am am oo rthy : Text book of Project Management Me. M illa n ,
N e w D elhi. (1996)
4. Patel, B.M. Project management Vikas Pub. H o u se (2000)
5. R ustagi , R.P, Financial Management : Theory Concepts and Problems : 3rd Edition
G algotia P ub lishing Co. (2006)
6. Shim.J & J.Giegel, Financial Management, ,Schaum O utline Series, 2nd Edition Tata Me
G ra w Hill Co.(2004)
 Sem ester-VI
Pa p e r -6 0 1
En v i r o n m ental Ec o n o m ic s

E nvironm ental Econom ics is no lo n g er a perip h e ral area of the discipline of Econom ics, b u t
is at the centre in discu ssion s of d ev e lo p m e n t econom ics today. H ence s tu d e n ts need to
u n d e rs ta n d the basic term in o lo g y of E nviro nm ental Economics, E n v iro n m en ta l v alu atio n,
A ccounting F ram ew ork , R egulations, a n d in tern ation al env iron m en tal issues. T h is syllabus
not only pro v id es the basic fo u n d a tio n s of E n viron m ental Economics b u t also e q u ip s the
stu d en ts regardin g cu rren t d ev e lo p m e n ts in the subject.

U N IT I: E N V IR O N M E N T A L PRO BLEM S A N D ISSUES:

1. A n In tro d u c tio n to E n v iro n m en tal Econom ics
2. E nv iro n m en t a n d Elem ents of ecology
3. M arket F ailure Analysis: Public G oods a n d Externalities
C h ap ters 2 a n d 4 -T hom as C allan
C h ap ter 1-R.N.Bhattacharya

U N IT II: S O L U T IO N S T O E N V IR O N M E N T A L PROBLEM S:
1. C on ven tio nal Policy- E n viro nm en tal S tand ards, Efficiency of E n viro nm ental
stand ards, C o m m a n d a n d Control A p p ro a c h
2. M arket Based Policy- P ollution C h arges a n d E nvironm ental Subsidies, D eposit
refu n d System , P ollu tio n P erm it T ra d in g Systems,
3. E nv iro nm en tal R egu lation s in India
C h ap ters 5 a n d 6 T h o m as C allan
C h ap ter 3 (pages 100-119) - R.N. B hattacharya

U N IT III: A N A LY TIC A L T O O L S F O R E N V IR O N M E N T A L P L A N N IN G
1. E n viron m ental Risk Analysis- C oncept of Risk, Risk A ssessm en t a n d Risk
M anagem ent.
2. Assessing Benefits for E n v iron m en tal D ecision M aking- E n viro nm ental Benefits-
C onceptual Issues, A p p ro a ch e s to M ea su rin g Environm ental Benefits- Physical
Linkage A p proach, Behavioral Linkage A pproach- Direct a n d Indirect
E stim ation M ethods.
3. Benefit - C ost A nalysis
C h apters 7, 8 an d 9 T h o m as C allan

U N IT IV: SU ST A IN A B LE D E V E L O P M E N T A N D E N V IR O N M E N T A L A C C O U N T IN G
1. Sustainable D e v elo p m en t- C oncept a n d M easu rem en t
2. E n viron m ental A ccou nting- C oncept, C o m m o n P rop erty Resources a n d LDCs
C h ap ter 5-Tom Tietenberg
C h ap ter 5-R. N. B hattacharya (Pages 179 to 188 a n d 198 to 215)

53
 U N IT V: G L O B A L E N V IR O N M E N T A L M A N A G E M E N T
1. In tern atio n al T ra d e a n d Intern atio nal A g re em en ts
2. A C ase of G lobal A ir Q uality- Policies for O zo ne D e p le tio n a n d G lobal
W a rm in g
C h a p te rs 21 a n d 14- T ho m as C allan

R eferences:
T h o m as Callan: E n v iro n m e n ta l Economics, 2007 T h o m so n L earning Inc. In d ia n E dition.
R .N .B hattacharya: E n v iro n m e n ta l Economics, A n In d ia n P erspective (Edited), 2001 O xford
U niversity Press.
T o m Tietenberg: E n v iro n m e n ta l a n d N a tu ra l R esource Economics, 2004 (Sixth Edition),
P earso n Education.

54
 S e m e s t e r - VI
P a p e r —6 0 2
B u sin e ss St r a teg y a nd Et h i c s

O b jectiv e:
The cou rse aim s to acq u ain t the stu d en ts w ith the nature, scope a n d fo rm u la tio n of B usiness
Strategies a n d th eir s u p p o rtin g organizational policies.

U N IT I O V E R V IE W OF STR A TEG IC M A N A G E M E N T
(i) Nature and V alu e of Strategic M anagem ent
N a tu r e a n d scope, C o n cep t of Strategy, Levels of Strategy, C o rp o ra te Strategy, S trategy
P lanning, V alue of Strategic m anagem ent. Benefits of strategic m a n a g e m e n t. Risks of
Strategic m an a g em en t.
(ii) Strategic M anagem ent Process
Strategic M an a g em en t as a Process. C o m p o n en ts of Strategic M a n a g e m e n t M odel.
C o n cep t of Vision a n d M ission. Form ulating a C o m p an y M ission. Social Responsibility:
G uid elines for a Socially R esponsible Firm.

U N IT 2 : E N V IR O N M E N T A L ANALYSIS
(i) External Environm ent
N e e d a n d C haracteristics of env ironm ental factors. Analysis of rem ote en v iro n m e n t.
A naly sis of specific env ironm en t: M ichael E. P o rter's 5 Forces M odel.
(ii) Internal Environm ent
V alue of S ystem atic Internal A ssessm ent. D ev elo p in g the C o m p a n y profile. Profile of
C o m p a n y 's S tren gth s a n d W eaknesses.
(ii) M ultinational Environm ent
W h y C o m p an ies Internationalize. C om plexity of the M u ltin atio nal E nvironm ent.
M u ltin a tio n a l Strategic: plann in g. M N C M ission Statem ent.

U N IT 3: STRA TEG Y F O R M U L A T IO N , ANA LYSIS A N D C H O IC E

(i) Form ulating Long-Term Objectives and Grand Strategies
L ong T erm Objectives. T ypes of Strategies. Selection of Long term Objectives an d
Strategy. S equence of Objectives and strategy selection. ^
(ii) Strategic A n a lysis and Choice
Strategic A naly sis at th e C orporate Level. SW OT Analysis. G ra n d strategy Selection
M atrix. C o ntin gen cy A p p ro a c h to Strategic Choice.

U N IT 4: S TR A TEG Y IM P L E M E N T A T IO N A N D C O N T R O L
(i) O peration alizing the Strategy
A n n u a l Objectives. Q ualities and Benefits of A n n u al Objectives. D ev elo p in g Functional
Strategies. B usiness policies a n d their Purpose.
(ii) In stitutionalising the Strategy
S tructu ral C o nsid eratio ns. Linking structure to strategy. O rganization al leadership. Role
of th e CEO. O rg an izatio nal culture. M anagin g the S trategy-C ulture relationship.
(iii) Strategic Control and Evaluation
Establishing Strategic Controls. O perational control systems.
U N IT 5 : B U SIN E SS ETH ICS:
V alues-C on cept, ty p es a n d form ation of values, ethics, values a n d b e h a v io u r, Ethics,
d e v e lo p m e n t of ethics, ethical decision m ak in g a n d decision m ak in g process, relevan ce of
ethics a n d v alu e s in business. M an a g e m e n t of Ethics.

M a in R e a d i n g s :
1. J.A. Pearce & R.B Robinson; Strategic m an ag em en t, Prentice H all P ublications.
2. G hosh, P. K.; Strategic Planning and Management, S ultan C h a n d & Sons, N e w D elhi

S u p p le m e n ta r y R e a d i n g s :
1. T h o m p so n , A rth u r A. a n d A. j. Strickland; Strategic Management, M cG raw Hill, N e w
York.
2. G hosh, P. K.; Strategic Planning and Management, S ultan C h a n d & Sons, N e w D elhi
3. P rased, L .M ; B u sin ess Policy; Strategic m an ag em en t., S ultan C h a n d & Sons, N e w
Delhi.
4. Jauch a n d Glueck; Business Policy and Strategic Management, M cG raw -H ill.

56
 S e m e s t e r - VI
O p tio n a l G ro u p F: P a p e r - 611
In t e r n a t i o n a l Fi n a n c e

U N IT 1 : IN T R O D U C T IO N TO THE FOREIGN EXCHANGE M ARKET A N D

FU N D A M E N T A L ISSUES
W h at is F oreign E xchange (Forex) M arket, C o m m unication in Forex M arkets, C u rre n cy
Quotes, ty p es of q u o tatio n s in forex m arkets, calculation of fo rw a rd rates u sin g sp ot
rates, calculation of d is c o u n t/p re m iu m on sp o t rate using sp o t a n d fo rw a rd rates, Spot
Rates w ith a n d w ith o u t transaction costs, synthetic quotes. A rbitrage: o n e point, two
point a n d three p o in t arbitrage. Interest rate P arity (explanation of b o rr o w in g an d
lending criteria, d ia g ra m m a tic presentation) PPP Principle (b o th ab so lu te a n d relative
versions), In tern atio n al Fischer Effect.

UNIT 2 : DERIVATIVES IN THE INTERNATIONAL FINANCE MARKET

F orw ard vs. F u tu re contracts, Pay Off profile on currency fo rw a rd a n d fu tu re contracts.
M argin A d ju s tm e n t for futures. C urren cy O ptions: E u ropean a n d A m eric an O ptions,
Intrinsic Value, p re m iu m , at the m oney, in the m oney and o u t of m on ey options, Pay Off
profile o n o p tio n contracts.

UNIT 3 : IN T E R N A T IO N A L FINANCIAL SYSTEM

International Financial System : Past, P resent a n d F u tu re : Gold S ta n d ard , Price
A d ju stm en t u n d e r the G old S tan d ard G old Exchange S tan d ard , Price A d ju s tm e n t u n d e r
the G old Exchange S ta n d ard , E u rop ean M o netary System, Price A d ju s tm e n t u n d e r the
EMS, B retten w o o d System , C reation of SDRs, S m ithso nian A g re em en t a n d Plaza
A greem ent.

U N IT 4 : FACTORS AFFECTING EXCHANGE RATES A N D EXPOSURES

C urrency D e m a n d a n d S u p p ly Curves, th e '}' C u rve Effect. Factors A ffecting Exchange
Rate: Inflation (H o m e C o u n try & H o m e C o u n try a n d foreign country), Interest Rates,
Income Levels, G o v e rn m e n t Control, Expectations etc. F oreign Exchange Exposure:
Transaction, Econom ic a n d T ranslation Exposure, m a n a g in g these ex p o su res and
statistical m e a su re m e n t. H e d g in g strategies ad o p te d in internatio nal trad e.

UNIT 5 : PAYM ENT SYSTEMS

P ay m en t T erm s a n d F inancing International T rad e , Intern atio nal Flow of F u n d s and
Portfolio In v e stm e n t in India, FDI vs. FIIs, Investm ent S trategies of FII in India, FII and
volatility, Im p ac t of FII in vestm en t on stock m arkets and concern of G o v e r n m e n t .

M ain R e a d in g s :
1. Apte, P. G., M u ltin a tio n a l Financial M anagem ent, T ata-M cG raw Hill, N e w Delhi, 1998.
2. Levi, M aurice; In tern atio n al Finance M cG raw Hill Inc., N e w York, 1996
3. M ad u ra, J e f f ;: Intern ation al Financial M an ag em en t
4. Seth, A.K., Internation al Financial M anagem ent, Galgotia P u blish ing C om pany, New
Delhi, 2000.
5. Shapiro, Allen C., M ultinational Financial M anagem ent, Prentice Hall India Pvt Ltd.,
N ew Delhi, 1995.
 S e m e s t e r - VI
O p tio n a l G ro u p M: P a p e r - 621
A d v e r t isin g & Brand M anagem ent ,

U N IT -1 F O U N D A T IO N S O F A D V E R T IS IN G
T ypes of ad v ertisin g , T h e C o n cep t of IMC, Roles a n d fu nctio ns of ad v ertisin g , T h e key
players - ad v ertiser, m e d ia , ad v e rtisin g agency, O rg a n izatio n of ag en cy - h o w to select
a n ad v e rtisin g agency, A d v e rtisin g a p p ro p riatio n s - factors in flu en c in g ad v e rtisin g
b u d g et, m e th o d s of settin g ad v e rtisin g b ud get.

U N IT -2 P L A N N IN G A N D STRA TEG Y
P lannin g fram ew o rk , M a rk e tin g strategy a n d situation analysis, T he m a rk e tin g p lan , The
ad v e rtisin g plan, S ettin g goals a n d objectives - functions a n d objectives,The D A G M A R
ap p ro ach ,S e g m en tin g a n d positioning.

U N IT -3 EFFECTIVE A D V E R T IS IN G M ESSA G E
T he creative a n d m e ssa g e strateg y - the concept of USP/UVP, th em es a n d appeals,
C o p y w ritin g - th e la n g u a g e of advertising, co p y w ritin g for print, radio, T.V. a n d web,
Illustrating - v isual co m m un icatio n, D esigning a n d p ro d u c tio n - (in clu d in g th e visual
layout), E v alu a tio n of effectiveness, Pre- Testing, Post-Testing

U N IT-4 EFFECTIVE A D V E R T IS IN G M E D IA
T yp es of m edia, N e w e r m e d ia options, M edia objectives, M edia b u d g e t, M edia strategies
- M edia m ix, M ed ia b u y in g , M edia evaluation.

U N IT-5 B R A N D M A N A G E M E N T
B rand m a n a g e m e n t - w h a i 13 a b rand, b ra n d d ev elo p m en t, extension, rejuvenation, re­
launch - p ro d u c t vs. b ra n d s , g o ods a n d services, retailer a n d d istribu to rs, p eo ple and
org anization, b ra n d challen ges and oppo rtun ities, th e b ra n d eq u ity concept, identity an d
im age
B rand lev erag ing a n d b r a n d p erform an ce - establishin g a b ra n d eq u ity m an a g em en t
system , m e a su rin g so u rces of b ra n d equity a n d c o n su m er m indset, co-branding, celcbrity
e n d o rse m e n t
B rand p ositio n in g a n d b r a n d b u ild in g - b ra n d k n ow ledge, b ra n d portfolios a n d m ark et
seg m en tatio n - step s o f b ra n d building, identifyin g a n d establishin g b ra n d positioning,
defin ing a n d estab lish ing b ra n d values.

S u g g e ste d R e a d i n g s :
1. A dvertising: P rinciples an d Practice by W illiam Wells, S an d ra M oriarty, a n d John
Burnett, 7th edition, prenctice-H all of India, 2007
2. A dv ertisin g M a n a g e m e n t by Jaishri Jethw aney a n d Shruti Jain, O xford U niversity
press, 2006
3. A dv ertisin g b y A kar, M ay o r and Batra

58
 S e m e s t e r - VI
O p tin a l G ro u p Q: P aper 621
A D V A N C E D M A T H E M A T IC A L T E C H N IQ U E S ,

U N IT 1 : L IN E A R ALGEBR A
C haracteristic eq u atio n s a n d roots. D iagonalisation. Q u a d ratic forms.

U N IT 2 : F U N C T IO N S OF SEVERAL VARIABLES
Partial derivatives. G eneralised Y oung's th eo re m an d Euler's theorem . C o nv ex sets.
C onvexity, C oncavity, q u asi convexity, quasi concavity and th eir inter-relations.
M ax im u m a n d m in im u m values. C onstrained optim isation w ith one a n d m o re eq u ality
constraints. E nvelope results. O ptim isation w ith inequality con strain ts. N o n linear
p ro g ra m m in g . Applications.

U N IT 3 : L IN E A R P R O G R A M M IN G
D uality, C o m p le m e n ta ry Slackness a n d ap plication of K uhn T ucker conditions.

U N IT 4: D IF F E R E N C E E Q U A T IO N S
First o rd e r w ith c o n stan t a n d variab le coefficients. Second order equations. E conom ic
applications.

U N IT 5 : D IFF E R E N T IA L E Q U A T IO N S
Definite a n d in d e fin ite integr?ls a n d their econom ic applications.

S u g g e ste d R e a d in g

1. Sydsaeter, K nut & H a m m o n d , Peter J.: M athem atics for Econom ic A nalysis
[P earsons Education]
2. Y am ane, Taro: M athem atics for Econom ists - A n elem en tary su rv e y [PHI]
 S em ester VI
O p tin a l G ro u p E: Paper 641
Ec o n o m ic G row th a n d Po lic y

U N IT 1 : E C O N O M I C DEV EI n p M E N T - D E F IN IT IO N S A N D C O N C E P T S
• A V ery S hort In tro d u c tio n (AVSI), C haracteristics of D e v e lo p m e n t p p 1-29
• D e v e lo p m e n t Economics, C hapter-2
• D istin ctio n b e tw e e n G ro w th a n d D e v elo p m en t
• E cono m ic D ev elo p m en t, M ichael. P. Todaro, C h a p te r 1 a n d 2

U N IT 2 : G R O W T H M O D E L S
• DE, C hapter-3 E conom ic G ro w th, Section-3.3.1(pp 51-56) a n d
Section 3.5 (p p 74-84).
• DE, C h a p te r 10, p p 353-371 (LEWIS MODEL)
• In tro d u c tio n to E conom ic G ro w th pp20-53 (THE BASIC SOLO W M O D EL)
• E n d o g e n o u s G ro w th M o d e l : Jones
Note- Solow Model shall be covered before Convergence (Section 3.5)

UN IT 3 : H U M A N CAPIT A L -E D U C A TIO N , INTELLECTUAL CAPITAL &

POVERTY.
• M eier p p 4 5 0 - 4 5 9 (E ducation in v estm en t in H u m a n C apital)
• M ich ael P T o d aro , Economic Development, C h a p te r 9 (r iu in a n C a p i t a l : ZUuCaiiur.
& H e a lth n E conom ic D evelop m ent)
• C o n c e p t of relative a n d abso lute po verty , Sen
• In c o m e in eq uality a n d its m ea su rem en t, w o rld experience in th is co ntext

UN IT 4 : TEC H NOLO G ICAL PROGRESS

• In tro d u c tio n to E conom ic G ro w th C h ap ter 4 & C h a p te r 5 (u p till P ag e 1 1 0 )
• D e v e lo p m e n t Econom ics, C h a p te r 4 , Section 4 . 4 . 4 & 4 . 4 . 5
• G ro w th a n d D ev elo pm
x en t.’ A.P T h i r w a l ! C h a ni t e r 1 4 fu
v rn Hll p
r a^
o e 4 9 9 )/ also
in c lu d e d are p p 5 2 5 - 5 3 6
» M eier, Section VIII, p p 3 8 1 - 4 0 5 (International T rad e and In tern atio n al Inequality)

U N IT 5 : S T A T E A N D T H E M A R K ET
• F H a y a m i , C h apter-8 (up till p ag e 212) a n d aiso inclu ded are p p 233-239
E xperience of S o u th East A sia A n d L atin A m erica C oun tries in this co ntext could
b e useful.

R eferences:
• D ebraj Ray, Development Economics, DE, Princeton U niversity ^re ss 1998
• C h arle s Jones, Introduction to Economic Growth, Second Edition
• P a rth a D a sg u p ta , Economics: A Very Short Introduction, O xford U n iv ersity Press,
2007
• Meier, Leading Issues in Economic Development, 5 ,h edition
• M ichael.P.Todaro, Economic D e v e lo p m e n ts edition.
• F H a y a m i , Economics ( a s p e r t h e p r e v i o u s s y l l a b u s )
• A .P T h irw a ll, Growth and Development ,7'h edition

60
 S e m e s t e r - VI

O p tin a l G r P: P a p e r 651
En t r e p r e n e u r s h i p a n d Fa m il y B u sin e ss

OBJECTIVES : Provide u n d e rsta n d in g of en trep reneursh ip, i.e., initiating a n inno vative n ew
bu siness ventu re a n d dev elop in g it into a self-sustaining and profitable enterprise. Fam ily
bu sin esses im p act all o u r lives. The course shall explore the b usin ess, p erso n al, and
in terp erso n al issues associated w ith a fam ily-ow n ed an d m an a g ed co m p a n y . T h e objective
of this stream is to p ro v id e co m preh ensive k n o w led g e a n d d e v e lo p com petencies to start
o w n in d e p e n d e n t business.

U N IT 1 : T H E EN TR EPR EN EU R IA L D E V E L O P M E N T PERSPEC TIV E

C on cepts of E n tre p re n e u rsh ip D evelop m ent, Evolution of the concept of E n tre p ren e u r,
E n tre p re n e u r Vs. In tra p ren e u r, E n tre p ren e u r Vs. E n tre p ren e u rsh ip , E n tre p re n e u r Vs.
M anager, A ttrib u tes a n d Characteristics of a successful E ntrepren eu r.

U N IT 2 : C REATIVITY ISSU ES A N D ID E A P R O C E S S IN G
M an a g in g C reativity Issues to be a d d re s s e d in w o rk in g the defin itio n of creativity -
D efinition -A ttrib utes of a creative p erson - C reative Thinking a n d M o tiv atio n -M an ag in g
C reativity - O rganisation al Actions that e n h a n ce a n d h in d e r C reativ ity -O rganisational
priorities a n d C reativity -M anagerial responsibilities in a creative organisation . Search
for bu siness idea, sources of ideas, idea processing , In p u t requirem en ts: sources an d
criteria of financing, fixed a n d w orkin g capital assessm ent, technical an d m ark e tin g
assistance

U N IT 3 : E N T R EPR EN EU R A N D E C O N O M IC D EV E LO PM EN T
Role of E n tre p ren e u r in In d ia n econom y a n d develo ping eco nom ies w ith reference to
S elf-E m ploym ent D evelo pm ent, E ntrepren eu rial C ulture, The E n tre p re n e u ria l m ind -set
in ind ividu als, The Entrepreneurial m in d -set in o rg a n iz atio n s a n d corporate
en tre p ren e u rsh ip , E ntrepreneurial Strategy: gen erating and exp loitin g n e w entries.
W h y do E n tre p re n e u rs fail - T h e FOUR E n tre p re n e u ria l P itfa lls (P eter D ru c k er)

U N IT 4 : M A N A G E M E N T O F FAMILY B U SIN ESS

O v e rv iew of Fam ily Business Dom ain, Fam ily capital, R ecognize conflict, Decision
m a k in g a n d conflict m an ag em en t, G o vern ance of the family enterprise, E n d u rin g fam ily
enterprise.

U N IT 5 : S U C C E S S IO N P L A N N IN G
In n o v a tio n & C hange , N a g g in g issues, Succession, D ev elo p in g lead ersh ip abilities,
E state p lan nin g, E xpectations of successors, S elf-developm ent and career plan,
P re p a rin g the next gen eratio n

61
S u g g e s te d R e a d in g s :

1. V a sa n th Desai : D y n am ics of E n tre p ren e u rial D ev elo p m en t & M a n a g e m e n t

2. G u p ta & S rin iv asan : E n tre p ren e u rial D ev elo p m en t
3. Jo hn Kao : C reativ ity & E n t r e p r e n e u r s h i p _
4. Carlock, R. S. & W ard , J. Strategic P la n n in g for Family Business: Parallel P la n n in g to U n ite the
Fam ily a n d the Business.
5. Poza, E. J. F am ily Business. 2007.

62