Full-Time MBA 2015

Macroeconomics and National Competitiveness (GIE 807) Examination

Date: Friday, 20 March 2015 8:30 – 12:30

Time: 3 hours plus 60 minutes for reading
Total Marks: 100
Lecturer: Prof. Adrian Saville
Notes: - This is an open book examination based on case X.

- Please check that you have all pages in the document.

- Please return this exam paper to the invigilator when handing
in your completed script.
- No cell phones, notebook computers or other mobile
communication devices are allowed to be used during the
exam.
- You are required to answer all the questions that make up
this paper.
- Use mark allocation as a guide to time allocation.

Past assessments should be used as a guide only. GIBS reserves the right to amend the content and
method of assessment
 Question 1 35 marks

A key factor in assessing the performance of an economy is ‘macroeconomic stability’.

i. What measures/metrics do you think should be used to assess the prosperity

of a country such as country X? In your response, be sure to explain the
rationale for the measures/metrics that you propose.

ii. Using these measures, assess the stability of country X’s economy over the
timeline of the case. If stability varies, be careful to comment on this variability.

Question 2 35 marks

During the 1970s, country X undertook a major industrialisation policy initiative.

i. Drawing on economic models, explain the mechanics of the industrialisation

initiative and how it was expected to benefit country X’s economy.

ii. Ultimately, this industrialisation policy failed. Explain why you think the policy
failed and if there were key ingredients missing that were needed to make the
policy work.

Question 3 30 marks

i. If investment flows into the economy of country X and international trade

expands, what do you anticipate the long-run effects will be on the economy of
country X?

ii. Would you consider investing in the economy of country X to open a business
in that country? Explain your position using evidence from the case as well as
your outlook for the economy to explain your business decision.

Past assessments should be used as a guide only. GIBS reserves the right to amend the content and
method of assessment