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Chartered Economics - Detailed Curriculum

The document discusses the curriculum for the Chartered Economist certification program. The program focuses on developing knowledge, skills, and application of economics. It covers topics like macroeconomics, microeconomics, and economic policy. The certification is internationally recognized and qualifies graduates for roles like economic analysts.
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100% found this document useful (2 votes)
1K views43 pages

Chartered Economics - Detailed Curriculum

The document discusses the curriculum for the Chartered Economist certification program. The program focuses on developing knowledge, skills, and application of economics. It covers topics like macroeconomics, microeconomics, and economic policy. The certification is internationally recognized and qualifies graduates for roles like economic analysts.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Syllabus & Topic List

Ch.E® Certification Program

Address: 403, 4th Floor ITL Twin Towers, Plot No-B-09, Netaji Subhash Place, New Delhi – 110034,
Tel: 011-45120800, Website: www.aafmindia.co.in, Email: [email protected]

1 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Chartered Economist® Curriculum
The Chartered Economist Education Program focuses on sharpening three components:
(a) Knowledge
(b) Skills
(c) Application.

(a) Knowledge: The students get the latest updates and learn about the opportunities of economics,
with specific relevance to world. They appreciate the market dynamics influencing economic policy
and gain an overview on the latest innovations in economics in economic policy formation and
management they also gain an insight to global best practices and achieving success in economic
analysis and understand the options and issues in economic analysis.
(b) Skills: Students develop skills in formation and management of economics for industry, government
and social welfare, ability to present concepts of economic analysis and strategies confidently
through customer friendly language and also the ability to create strategies to build effective
relationship with government and industry experts or increase their capability to think strategically
by using a structured process.
(c) Application: The program through its rigors and practical orientation prepares the students to apply
the concepts and skills developed in the program in actual work environment. The outcome of this
applied education is a complete “Chartered Economics” who is ready for the rigors of the
economics, economic policy in Industry.

The Curriculum of CE® Consist of two levels:

Level 1: Foundation Level Consisting of Chartered Economist®

Level 2: Advanced Level – Specialization (Available in 7 different Specializations)

The candidate has to go through the above mentioned levels through an Authorized Education Provider
either through Class Room Mode or Distance Learning Mode and clear the requisite exams as per the
requirement of the certification to complete the academic requirements of the Board of Standards. The
completion of the academic criterion ensures that the candidate has the requisite knowledge and skills
to work as a Chartered Economist®.

2 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Program Objectives
Today’s economy and economic landscape is evolving fast. New technical possibilities are meeting
changing customer demand. The micro-economics, macro-economics and economic policies
complement and compete with each other, changing investment calculations, and adding new layers of
complexity to the internal and external market. Both national and international economic regulations
are profoundly changing the way businesses operate, the threats they face, and the opportunities that
are opening up.

The Chartered Economist® is a professional designation and certification affiliated with the prestigious
American Academy of Financial Management USA. The globally acclaimed credential and identifying
mark of professional economists; worldwide who are the part of AAFM Board Network.

The idea of Chartering in some specific career-based aspects of Economics as a profession evolved in the
United States of America and for some years now the Chartered Economist® ideology is being spread by
the Prestigious American Academy of Financial Management. This AAFM is also a founder and in
agreement with the Association of Certified Chartered Economists (ACCE). The American Academy of
Financial Management (AAFM), the Academy has certified people who want to pursue courses leading
to the award of Chartered Economist® Certification in the approve fields of Economics and Economic
Policy Analyst by AAFM.

The Chartered Economist® Professional Program will enable professionals to help their organizations
execute sound managerial decision in an increasing complex global environment. The program focuses
on building economic thinking and analysis skills in conjunction with how to apply economic theories,
tools and techniques in administrative and business decision making, study data and statistics in order
to spot trends in economic activity, economic confidence levels, and consumer attitudes.

“Life without The Economist would be life without a global perspective.” – Dr. Eric Schmidt, Executive
Chairman, Alphabet

A chartered economist® is a “professional, objective and critical and is able to contribute effectively to
national discourse and development”. Economists use statistics, mathematical analysis, and economic
theory to conduct studies concerning such issues as unemployment, inflation, industrial productivity,
farm policies, and international trade.

3 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


The Chartered Economists® is a globally recognized course in economics offering an international
certification valid in 150+ Countries those open doors for a student in Governmental Programs; Financial
Institution, Management places of corporate bodies and Non-governmental associations &
organizations.

The Chartered Economists® Program furnishes candidates with chances to build up the explanatory,
analytical, functional and interpersonal skills & aptitudes vital to sound managerial decision-making in
more and more complex economies and financial environment.

The Chartered Economists® Program is a proficient program intended to prepare students for a
challenging and exciting career.

AAFM® dedication is to focus & prepare Chartered Economists® Program students for high level career
& professions in an increasing global economics and financial environment. This, program is offered to
qualified students who look to serve in a position of authority in economics. Attention is put on the
coordination of organizational activities and how the different divisions and functions need to work in a
deliberate push to optimize organizational output. The courses in this program focus on the introduction
of procedures that give aptitudes & skills in analysis, decision-making and adequacy evaluation.

Chartered Economist® is one of the most highly valued qualifications available internationally for
individuals and corporates.

The Chartered Economist® qualification is administered by the American Academy of Financial


Management and is promoted as the industry standard for professionals working in the economic
services in industry as Research Analysts, Investment Bankers, Professional Consultants etc. The
Chartered Economist qualification is one of the most highly respected and valued qualifications available
internationally. It is recognized by member states in both developed and emerging markets, the
Chartered Economist® designation is recognized as a symbol of professional excellence.

Gaining such a qualification is evidence that you possess skills and knowledge that are in high demand
by employers in global markets as well as in banking, professional management consulting etc.

The Chartered Economist® equips students with cutting edge skills in economic analysis and research
taking the students through a deep value fundamental economic research process that result in the
creation of independent economic research reports and innovative economic models. The Chartered
Economist® program provides an educational challenge that builds on relevant, real-world fundamental
economic knowledge to educate, train and develop the next generation of top notch talent.

4 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


In every economic system, entrepreneurs and managers bring together resources, labour and
technology to produce and distribute goods and services. In a free market economy most of the
businesses are organized and driven by individuals. These are entrepreneurs who have skills and interest
in many diverse industries are the once who take the ultimate decisions about what is produce, how it’s
made and what it will cost.

Technology is accelerating every aspect of the free market system and through globalization our world is
getting smaller and smaller causing rapid change and its profound impact on everything from product
and process innovation to how goods and services are marketed and sold.

However, this market globalization and fast pacing of doing business causes tremendous volatility and
disruption, understanding the economics context of doing business, competitive market behavior,
financial market and government economic policy will influence organization which is critical of the
success of every profit-oriented business, non-profit or government enterprise.

This is a dynamic and globally oriented certification offering professional education that focuses on the
study of free market economics and international financial service.

Our programs combine expertise, academic, global business professionals and the best professional
education technology, manual and interactive learning strategy.

We are educating the World’s Future Leaders in government, academia, commence and non-profit
organization to understand and uphold highest standards of ethical conduct. The Chartered Economist®
professional program will enable professionals to help their organizations execute sound managerial
decision in an increasing complex global environment.

The program focuses on building economic thinking and analysis skills in conjunction with how to apply
economic theories, tools and techniques in administrative and business decision making.

Full blended learning solution, with the final manual and online assessment, students master the
following credible components in our various Chartered Fields.

The key macro-economics and micro-economic forces influencing the enterprise:

 Applied research methods for business economics


 Competition policy, financing business, economic regulation and world trade
 Marketing dynamics –
 Developing fast-to-market technology

5 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Action oriented marketing plans
 Economic forecasting and Econometrics
 How a business economist can work effectively with other leaders to translate changes in the
economic environment into improved performance and business strategy.
Candidates who successfully complete the program and pass the Chartered Economist® Exam will join a
credential group of esteem professionals and academics leading the way of addressing the critical
economic problems of our days and in the future.

This program aims to:


 Understand economic conditions and use them to evaluate the strength of organizations.
 Examine economic information to identify what is most relevant to the organization.
 Applying sophisticated analytical methods
 Framing an idea and formulating an economic decision.
 Develop economic models to estimate the fundamental value of a firm.
 Apply concepts of economics and statistics for increasing the economic viability of the
organization.
 Make extensive use of economic model and tools in formulating the economic decision for the
organization
 Write economic research reports
 Advise and analyze micro & macro-economic conditions of the organization.
 Gaining understandings in and over the disciplines that add to the area of Economic Analysis and
Research including Enterprise Budget Reports, Risk Analysis Reports, Annual Report, Economic
Reports of Government, etc.
 Relating these applied systems to measurements of practical areas on the ground.
 Furnishing applicants with chances to experience and fundamentally draw in with cases of both
challenging issues and endeavored interventions by a Chartered Economist.
 Investigate & explore the moral and individual dimensions of Economic Analysis and understand
the moral responsibilities of a Chartered Economist.
This course will enable participants to:
 Worldwide Economists, Research Analysts, Credit Analysts Corporate Finance Professionals hold
this designation.
 The Designation and Certification are issued Directly from AAFM USA.
 Recognized in over 170+ countries via 800 training providers, universities, colleges and business
schools.
 Corporate Members of AAFM India give first preference to Ch.E.® Designation Holders in
recruitment.

6 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Enhanced career and employment opportunities with Corporates, KPO’s, and Research Houses.
Universities etc.
 Increase your depth of knowledge in key areas of Economics.
 Researching, analyzing and interpreting information about economic performance, tax, and
political decisions according to both national and international factors.
 Studying economic and statistical data in areas of specialization, such as finance, labour, or
agriculture.
 Compiling, analyzing, and reporting data to explain economic phenomena and forecast market
trends.
 Seeking to determine the implications of their findings and forecasting change.
 Preparing points of view used in forecasting trends and formulating economic policy.
 Advising Government and government-related bodies, industry, businesses, commercial
institutions or investors.
 Apply economic analysis to issues within a variety of fields, such as education, health,
development, and the environment.
 Some economists study the cost of products, healthcare, or energy. Others examine
employment levels, business cycles, or exchange rates. Still, others analyses the effect of taxes,
inflation, or interest rates.
 Study historical trends and use them to make forecasts. They research and analyses data using a
variety of software programs, including spread sheets, statistical analysis, and database
management programs.
 Collect and analyses data about the economy, including employment, prices, productivity, and
wages among other types of data. They also project spending needs and inform policymakers on
the economic impact of laws and regulations.
 Many economists work for corporations and help them understand how the economy will affect
their business. Specifically, economists may analyses issues such as consumer demand and sales
to help a company maximize its profits.
 Study and analyses a variety of economic issues. Their analyses and forecasts are frequently
published in newspapers and journal articles.
 Helps understand a range of real life issues both on national and international scale
 Help make decision making, using cost benefit analysis
 Apply economic theory to predict potential outcomes
 Understand why some financial policies are being implemented by the Government and RBI.
 Understand all the working and motion of Global economy. So, next time there is a recession in
the market, you can be clear how it will affect you or why it is happening?
 Understand how diplomacy on Global Level help/hinder growth in your nation’s GDP/Economy.

7 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Learning Outcomes of the program
At the end of the course, candidates/students should be able to
 Add a Professional Designation to your name, business cards, letter heads, email signatures etc.
 Access top Economist and financial professional networks around the globe; providing the
opportunity to network with charters and members throughout the world.
 The membership certificate of the Chartered Economists is awarded directly by the most
prestigious American Academy of Financial Management (AAFM) and as such, it's fully
recognized in USA and in 150+ countries worldwide.
 As part of the AAFM Certification package, members are to receive scholarship to pursue a
Masters (LLM in Taxation, Economics and Finance) and Doctorate Degree at Thomas Jefferson
School of Law at San Diego in California.
 AAFM provides an online system that will confirm / authenticate your membership and
certification to employers or other interested parties.
 AAFM provides opportunity of being linked to some corporate bodies who request for specialist
through the AAFM Corporate tie-up.
 Higher salaries; earn up to 16% more than your non-certified peers.
 Increases job security; validates your competency in economics management functions.
 Better career flexibility; prepares you for greater on-the-job responsibilities.
 Improves marketability; stand out against other applicants in a tough job market.
 Boosts credibility; attaining the Globally Coveted Designation helps in boosting your credibility.

8 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Table of Content
Level 1

Book No. Book Name

1 Fundamentals Of Economics: Micro & Macro Economics

2 Econometrics

3 Industrial Economics

4 International Economics – I

5 International Economics – II

Level 2

Specialization Specialization Name


1 Chartered Economic Policy AnalystTM
2 Chartered Energy EconomistTM
3 Chartered Financial EconomistTM
4 Chartered Health EconomistTM
5 Chartered Industrial EconomistTM
6 Chartered Managerial EconomistTM
7 Chartered Petroleum EconomistTM

9 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Foundation Level
Level 1

Module No. Module Name

1 Fundamentals of Economics: Micro & Macro Economics

2 Econometrics

3 Industrial Economics

4 International Economics – I

5 International Economics – I I

6 An Introduction to a Mathematical Treatment of Economics

7 Introductory Econometrics a Modern Approach

8 International Economics

10 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Module 1 – FUNDAMENTALS OF ECONOMICS: MICRO & MACRO ECONOMICS
Course Objective:

For a professional like a Chartered Economist® an understanding of markets and economic systems is of
prime importance. This module would enable the Chartered Economist® to get a basic understanding of
the Micro-economics and Macro-economics. This module would also cover the fundamental aspects of
economics. The module would enable the Economics professionals in acquainting with the
fundamentals, history and origination of the Economics. The objective of the module is to enable a
Chartered Economist® to understand the changes in economic environment of the financial markets and
economic instruments.
This part of course would enable the Economics professionals in acquainting with the role of economics
in decision making. The objective of this part is to enable a Chartered Economist to understand the
critical thinking of micro-economics; demand & Supply and elasticity of demand & supply and consumer
behaviour and producer’s behaviour.
The last part of the module would help the Chartered Economist in knowing the macroeconomic issues
unemployment, poverty, and the economic growth.
Learning Outcome Statements
After studying this content module, you should be able to:
 Understand the concept of the economic analysis

 Able to differentiate between micro-economics and macro-economics

 Describe the importance of comprehensive economic analysis

 Understand different segments of micro economics analysis

 Understand the dynamics of the micro-economic evolution

 Understand the public interventions in economic analysis

 Explain the Functions and Role of the Chartered Economist

 Understand the importance and need and goal of economic analysis

 Describe the process of creation of a complex economic decision making

 Develop understanding about the nature of economic analysis with interdependence

 Describe the nature of the demand and elasticity of demand

11 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Understand the integral components of supply and elasticity of supply

 Understand the relevance of theories of consumer behaviour

 Describe the producer’s behaviour

 Describe the various forms of market

 Explain the importance of the price and price determination

 Understand the concepts of macro-economics

 Describe the nature of the macro-economic issues

 Understand the issues of unemployment and poverty

 Understand the rate of economic growth

 Establish the macro-economic policy in open economy

 Understand the concepts of fiscal policy in an open economy

 Describe the concept of expansionary fiscal policy

 Explain the concept of contractionary fiscal policy

12 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
Fundamentals of Economics

 Fundamentals of Economics
 Subject Matter of Economics
 Art & Science of Economics
 Economic Problem
 Tools of Economic Analysis
 Comparative Advantage
 Economic Decision Maker
Micro-Economics

 Micro Economics
 Methods of Economics
 Demand & Elasticity of Demand
 Law of Demand
 Demand Schedule
 Elasticity of Demand
 Supply & Elasticity of Supply
 Law of Supply
 Elasticity of Supply
 Consumer Behaviour
 Consumer Behaviour Models
 Producer’s Behaviour
 Production Function
 Forms of Market & Price Determination
Macro Economics

 Macro – Economics
 Emergence of Macro Economics
 Macro – Economics Issues & Measurement
 Inflation

13 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Money
 Functions of Money
 Supply of Money
 Narrow and Broad Money
 Unemployment
 Types of Unemployment
 The Rate of Economic Growth
 Macro – Economic Policy in an Open Economy
 Fiscal Policy in an Open Economy
 Expansionary Fiscal Policy
 Contractionary Fiscal Policy
 Economic Growth & Sustainability

14 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Module 2 – ECONOMETRICS
Course Objective:

For a professional like a Chartered Economist® an understanding of mathematics of economics and


econometrics is of prime importance. This module would enable the Chartered Economist® to get a
basic understanding of the functions of mathematical economics, their graphs and linear equations. This
module would also cover the fundamental aspects of econometrics. The module would enable the
Economics professionals in acquainting with the econometrics fundamentals, econometrics models and
statistics. The objective of the module is to enable a Chartered Economist® to understand the causality
and the notion of ceteris paribus in econometric analysis.
This module would focus on making a Chartered Economist understand the concepts of Econometrics.
The module would look into the different economic concepts like – Econometrics, Simple Linear
Regression Model and Multiple Regression Model which would act as a stepping stone towards the high-
end economic analysis. The overall aim of this module is to provide hands on experience on the
calculation of some of the basic but important measures of economic analysis.
Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the mathematical economics

 Able to differentiate between economics and mathematical economics

 Describe the importance of mathematics in economics

 Understand different segments of mathematical economics

 Understand the dynamics of the mathematical functions

 Describe the inverse function of the mathematical economics

 Explain the fitting linear functions

 Understand the budget constraints

 Understand the mathematical functions with two independent variables

 Explain the Cobb-Douglas production function

 Understand the mathematical graphs

15 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Explain the functions of linear equations

 Describe the solving quadratic equations

 Understand the importance and need of econometrics

 Describe the various types of econometrics

 Develop understanding about the econometrics models

 Describe the nature of the econometrics and the statistics

 Understand the causality and the notion of ceteris paribus in econometric analysis

 Understand the relevance simple linear regression model

 Describe the regression analysis

 Describe the least square regression

 Explain the importance of the prediction, goodness-of-fit and modeling issues

 Understand the concepts of autocorrelation

 Describe the nature of the multicollinearity

 Describe the concepts of Heteroskedasticity

 Understand the concepts of multiple regression model

 Understand the fitted values, residuals and their properties

 Understand the concepts of expected value of the OLS estimators

 Describe the concept of the Spearman rank correlation

 Explain the concept of the Glejser Test

16 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
Introduction to Mathematical Economics

 Quantification
 Simplification
 Economic Statistics and Estimating Relationships
 Mathematics and Business
 Elasticity of Demand
 Functions And Graphs
 Inverse Functions
 Graphs of Linear Functions
 Fitting Linear Function
 Slope
 Budget Constraints
 Using Excel to Plot Functions
 Functions with Two Independent Variables
 The Cobb–Douglas Production Function
 Linear Equations
 Equilibrium and Comparative Statics
 Solving Quadratic Equations
 Factorization
Introduction to Econometrics

 Types of Econometrics
 Econometric Models
 Features of Econometrics Model
 Econometrics And Statistics
 Time Series Data
 Causality and the Notion of Ceteris Paribus in Econometric Analysis
Simple Linear Regression Model

 Introduction to Simple Linear Regression Model

17 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Steps in Regression Analysis
 Least Square Regression
 Prediction, Goodness-of-fit and Modeling Issues
 Prediction in Econometrics
 Goodness-of-Fit in Econometrics
 Modeling Issues in Econometrics
 Autocorrelation
 Multicollinearity
 Heteroskedasticity
Multiple Regression Model

 Multiple Regression Model


 Mechanics and Interpretation of OLS
 Fitted Values, Residuals and their Properties
 Expected Value of the OLS Estimators
 Variance of the OLS Estimators
 Efficiency of OLS Estimators
 Heteroskedasticity
 Heteroskedasticity and Its Implications
 Possible Causes of Heteroskedasticity
 Detection of Heteroskedasticity
 The Spearman Rank Correlation Test
 The Goldfeld–Quandt Test
 The Glejser Test

18 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Module 3 – INDUSTRIAL ECONOMICS

Course Objective:
For a professional like a Chartered Economist® an understanding of industry and industrial economics is
of prime importance. This module would enable the Chartered Economist® to get a basic understanding
of the industrial economics, industrial organization and theory of firm. This module would also cover the
fundamental aspects of oligopoly. The module would enable the Economics professionals in acquainting
with the fundamentals of oligopoly, non-collusive oligopoly and collusive model of oligopoly. The
objective of the module is to enable a Chartered Economist® to understand the theories of firm and the
various forms of theory of firm.

This module would focus on making a Chartered Economist® understand the concepts of industry
concentration. The module would look into the different measures and trends of industry concentration
which would act as a stepping stone towards the high-end economic analysis. The overall aim of this
module is to provide hands on experience on the seller’s concentration and buyer’s concentration of
economic analysis.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the industrial economics

 Able to differentiate between economics and industrial economics

 Describe the importance of industrial organization in economics

 Understand different segments of industrial economics

 Understand the dynamics of the industrial economics and industrial organization

 Describe the concepts of oligopoly

 Describe the inverse function of the oligopoly

 Explain the various types of oligopoly

 Understand the non-collusive model of oligopoly

 Understand the various types of collusion

19 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Explain the Cournot duopoly model

 Understand the collusive model of oligopoly

 Explain the cartel model

 Describe the price leadership model

 Understand the importance of theories of firm

 Describe the production function

 Develop understanding about the organizational construction

 Describe the nature of the personification of the firm

 Understand the neo-classical theory of firm

 Understand the relevance of transaction-based theory of firm

 Understand the relevance of agency-based theory of firm

 Understand the relevance of resource-based theory of firm

 Describe the concepts of industrial concentration

 Describe the various measurement & trends of industry concentration

 Explain the importance of the seller’s concentration

 Understand the concepts of product differentiation

 Describe the nature of the buyer’s concentration

 Describe the concepts of buyer power

 Understand the concepts of Porter’s Five Forces

20 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
Introduction to Industrial Organization

 Introduction to Industrial Organization


 Industrial Policy
 Oligopoly
 Types of Oligopoly
 Non-Collusive Model of Oligopoly
 Types of Collusion
 Kinked Demand Curve Model of Sweezy
 Cournot Duopoly Model
 Collusive Model of Oligopoly
 Price Leadership Model
Theories of Firm

 An Introduction to Theories of Firm


 Production Function
 Organizational Construction
 Personification of the Firm, Authority
 NEO-Classical Theory of Firm
 Transaction-Based Theory of Firm
 Beyond the Firm and Market Dichotomy
 Agency-Based Theory of Firm
 Adverse Selection
 Moral Hazard
 Different Agency Conflicts
 Management and Collective Production
 Resource-Based Theory of Firm
 VRIO Framework
Industrial Concentration

 Industry Concentration

21 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Measurements & Trends of Industry Concentration
 Concentration Ratio
 Concentration Levels
 Herfindahl-Hirschman Index (HHI)
 Price Taker Markets
 Price-Searcher Markets
 Seller’s Concentration
 Product Differentiation
 Ease of Entry
 Barriers to Entry
 Buyer’s Concentration
 Buyer Power Definition
 Buyer Power – Determining Factors
 Buyer Power – Analysis
 Buyer Bargaining Power Interpretation
 Understanding Porter’s Five Forces

22 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Module 4 – INTERNATIONAL ECONOMICS – I

Course Objective:
For a professional like a Chartered Economist® an understanding of industry; international business and
international economics is of prime importance. This module would enable the Chartered Economist® to
get a basic understanding of the international economics, international business and comparative
advantage. This module would also cover the fundamental aspects of international economics and
economy. The module would enable the Economics professionals in acquainting with the fundamentals
of comparative advantages, balance-of-payment, equilibrium and disequilibrium in balance-of-payment.
The objective of the module is to enable a Chartered Economist® to understand and explore the
measures to correct disequilibrium in balance-of -payment.

This module would focus on making a Chartered Economist® understand the concepts of foreign
exchange and policy. The module would look into the different measures and trends in foreign exchange
rate which would act as a stepping stone towards the high-end economic analysis. The overall aim of
this module is to provide hands on experience on the exchange rate, rate determination, rate quotation,
rate forecasting and rate theories.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the international economics

 Able to differentiate between economics and international economics

 Describe the importance of subject matter of international economics

 Understand different segments of international economy

 Understand the subject matter of international economics

 Describe the gains from trade

 Describe the international capital market

 Explain the comparative advantages

 Understand the concepts of the balance-of-payment

 Understand the concepts of balance-of-payment accounting

23 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Explain the structure of balance-of-payment

 Understand the balances within the balance-of-payment

 Explain the equilibrium and disequilibrium in balance-of-payment

 Describe the various measures to correct disequilibrium in balance-of-payment

 Understand the importance of devaluation expenditure switching policy

 Describe the concepts of foreign exchange policy

 Develop understanding about the foreign exchange rate

 Describe the nature of the exchange rate determination

 Understand the concepts of exchange rate forecasting

 Understand the relevance of exchange rate theories

24 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
International Economy

 Introduction to International Economy


 Subject Matter of International Economics
 The Gains from Trade
 The Pattern of Trade
 How much to trade? Or Protectionism
 Balance of Payments
 Exchange Rate Determination
 International Policy Coordination
 The International Capital Market
 Comparative Advantages
 Absolute Advantage
 Sources of Comparative Advantages
Balance of Payment

 Balance of Payment
 Balance of Payment Accounting
 Structure of Balance of Payment
 Current Account
 Capital Account
 Balances Within the Balance of Payment Statement
 Balance of Trade
 Balance of Current Account
 Balance of Capital Account
 Equilibrium & Disequilibrium In Balance of Payments
 Autonomous Transactions
 Accommodating Transactions
 Equilibrium in BOP
 Disequilibrium in BOP

25 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Surplus in Balance of Payments
 Deficit in Balance of Payments
 Types of Disequilibrium
 Causes of Disequilibrium
 Measures to Correct Disequilibrium in Balance of Payment
 Automatic Adjustment
 Policy Induced or Deliberate Measures
 Monetary & Fiscal Policy (Expenditure – Changing Policies)
 The Swan Diagram
 Mundell’s Assignment Rule
 Devaluation (Expenditure Switching Policy)
 Exchange Control
 Trade Policy Measures
Foreign Exchange Policy

 Foreign Exchange Policy


 Participants of Foreign Exchange
 Exchange Rates
 Fixed Exchange Rate
 Floating Exchange Rates
 Speculation
 Interest Rates and the Exchange Rate
 Income and the Exchange Rate
 Managing Floating Exchange Rates
 Exchange Rate Determination
 Spot Market
 Forward Market
 Factors that Influence the Exchange Rate
 Exchange Rate Quotation
 American Term and European Term
 Direct and Indirect Quote

26 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Bid, Offer and Spread
 Exchange Rate Forecasting
 Techniques of Exchange Rate Forecasting
 Exchange Rate Theories
 Interest Rate Parity (IRP)
 Purchasing Power Parity (PPP)
 International Fisher Effect (IFE)

27 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Module 5 – INTERNATIONAL ECONOMICS – II

Course Objective:
For a professional like a Chartered Economist® an understanding of international trade, tariffs, trade
regulations, industrial policies are of prime importance. This module would enable the Chartered
Economist® to get a basic understanding of the international trade, tariffs, GATT, WTO and international
trade policies.

The objective of this module is to provide an overview of other aspects of international economics and
their analyses. Because of the complex nature of the international economics, this module places an
extra emphasis on the understanding of the economic forces driving the international trade,
international tariffs, trade regulations and international trade policies. The concepts of international
economics covered in this module include international trade, tariffs, trade regulations and trade
policies. The descriptive content characteristics of this international trade, tariffs, regulations and
policies are explained in terms of international economics. Various techniques for the study of
international trade, tariffs, regulations and policies are illustrated in detail.

It is important for a Chartered Economist to have a basic knowledge of the international economics used
globally.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the international trade

 Able to differentiate between economics and international economic tariffs and regulations

 Describe the importance of subject matter of international trade

 Understand different segments of international trade model

 Understand the subject matter of international economic growth

 Describe the international tariffs

 Describe the General Agreement on Tariffs and Trade (GATT)

 Explain the importance of the Uruguay Round on international trade

 Understand the concepts of the World Trade Organization

28 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Understand the concepts of international trade regulations

 Explain the international trade policies

 Understand the trade policies for developing nations

 Explain the analysis of trade policies in developing countries

 Describe the various international market failures

 Understand the importance of US Antitrust Legislation

 Describe the concepts of price regulations in international trade

 Develop understanding about the externalities in international trade

 Describe the nature of the COASE Theorem

 Understand the concepts of economic indicators

 Understand the relevance of international economic indicators

 Understand the relevance of Indian industrial production and inflation

29 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
International Trade
 Introduction to International Trade
 The Gravity Model
 The Changing Pattern of World Trade
 Service Offshoring
 The Standard Trade Model
 Production Possibilities and Relative Supply
 The Welfare Effect of Changes in the Terms of Trade
 Economic Growth: A Shift of the RS Curve
 Growth and the Production Possibility Frontier
 World Relative Supply and the Terms of Trade
 International Effects of Growth
International Tariffs
 Introduction to International Tariffs
 Non-tariff Trade Barriers
 Effects of Tariffs
 Consumer and Producer Surplus
 Producer Surplus
 Non-discrimination
 The General Agreement on Tariffs And Trade (GATT)
 Non-discrimination
 Most-Favored Nation
 National Treatment
 GATT Exceptions
 Free Trade Areas
 The Uruguay Round
 The Agreement on Agriculture (AoA)
 The General Agreement on Trade in Services (GATS)
 The Agreement on Textiles and Clothing (ATC)

30 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 The World Trade Organization
 The Dispute Settlement Process
 Dispute Settlement History
 Bound Tariffs and Applied Tariffs
Trade Regulations and Industrial Policies

 Trade Regulations
 The Smoot-Hawley Act
 Smoot-Hawley Provoked a Retaliatory Storm
 The Reciprocal Trade Agreements Act
 The Kennedy Round
 The Tokyo Round
 International Trade Policies
 Constituents of Trade Policy
 Strategic Trade Policy
 Export-Import Bank
 Economic Sanction
 Trade Policies for the Developing Nations
 Optimality of Free Trade
 Objections to Free Trade
 The Infant Industry Argument
 Terms of Trade
 Factor Market Imperfections
 Analysis of Trade Policies in Developing Countries
 Export Promotion and Import Substitution
 The “Bias” of a Trade Regime
 The “Two-gap Model”
 Tariff-quota Equivalence and Non-equivalence
 Rent Seeking
 Welfare Ranking of Tariffs and Quotas

31 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Market Failure and Government Interventions

 An Introduction to Market Failure


 Market Power
 Landmark U.S. Antitrust Legislation
 Sherman Act (1890)
 Clayton Act (1914)
 Federal Trade Commission Act (1914)
 Willis–Graham Act (1921)
 Robinson–Patman Act (1936)
 Wheeler–Lea Act (1938)
 Celler–Kefauver Act (1950)
 Hart–Scott–Rodino Act (1980)
 Merger Regulation
 Price Regulation
 Externalities
 COASE Theorem
 Government Solutions: Regulation; Permits and Taxes
 Government Solutions: Permits
 Government Solutions: Taxes
 Public Goods
 Political Rent-Seeking Behavior
International Economic Indicators
 Economic Indicators
 U.S. Economic Indicators
 The Business Cycle Stage
 Degree of Interest
 International Economic Indicators
 International Economic Indicators: why are they so important?
 India: Industrial Production and Inflation
 Wholesale Price Index (WPI)

32 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


INTERNATIONAL ECONOMICS (Extra Book)

Course Objective:
This book “International Economics” of Chartered Economist® Education Program covers the concepts of
international economics, on which an economist works and takes an economics decision or analysis.

The objective of this book is to provide an overview of various aspects of international economics and
their analyses. Because of the complex nature of the economics, this book places an extra emphasis on
the understanding of the international economy, modern trade theory, tariffs & non-tariff trade
barriers, trade regulations and industrial policies. This book also emphasis on understanding of the
balance-of-payment, foreign exchange, exchange rate systems, etc.

The concepts of international economics covered in this book include the trade policies for developing
nations, regional and international trade arrangements and agreements. Various other aspects for the
study of international economics are illustrated in detail.

It is important for a Chartered Economist to have a basic knowledge of the international economics used
globally.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the international economics

 Able to differentiate between economics and international economics

 Describe the importance of foundation of modern trade theory

 Understand different sources of comparative advantages

 Understand the subject matter of international tariffs

 Describe the non-tariffs trade barriers

 Describe the trade regulations and industrial policies

 Explain the importance of the trade policies for the developing nations

 Understand the concepts of the regional trading arrangements

 Understand the international factor movements and multinational enterprises

33 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Explain the balance of payment

 Understand the concepts of foreign exchange

 Explain the exchange rate determination

 Describe the various balance of payment adjustments

 Understand the importance of exchange rate adjustments and the balance of payments

 Describe the concepts of exchange rate systems and currency crises

 Develop understanding about the macro-economic policy in an open economy

 Describe the nature of the international banking

34 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
International Economy and Globalization

 Globalization of Economic Activity


 Waves of Globalization
 United States as an Open Economy
 Common Fallacies of International trade
 Backlash Against Globalization
Foundation of Modern Trade Theory: Comparative Advantage

 Historical Development of Modern trade Theory


 Production Possibilities Schedule Schedules
 Dynamic Gains from Trade
 Changing Comparative Advantage
 Exit Barriers
Sources of Comparative Advantages

 Factor Endowments as a Source of Comparative Advantages


 Factor Endowments Theory
 Intra-industry Trade
 Government Regulatory policies and Comparative Advantages
 Transportation and Comparative Advantages
Tariffs

 The Tariff Concept


 Types of Tariff
 Effective Rate of Protection
 Tariff Escalation
 Tariff Welfare Effects
 Trade Restrictions
 Political Economy of Protectionism
Non-tariff Trade Barriers

35 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Import Quota
 Quota versus Tariffs
 Tariff Rate Quota
 Export Quotas
 Anti-dumping Regulations
 Other Non-tariff Barriers
Trade Regulations and Industrial Policies

 US Tariff Policies before 1930


 Smoot – Hawley Act
 Reciprocal trade Agreements Act
 GATT
 WTO
 Trade Promotion Authority
 Protection of Intellectual Property Rights
 Trade Agreement Assistance
Trade Policies for the Developing Nations

 Developing Nations Trade Characteristics


 Trade Problems of the Developing Nations
 Stabilizing Primary Product Prices
 The OPEC Oil Cartel
 Aiding to the Developing Countries
Regional trading Arrangements

 Regional Integration versus Multilateralism


 Types of regional Trading Arrangements
 Impetus for Regionalism
 Effects of a Regional Trading Arrangement
 European Union
 NAFTA
 Asia-Pacific Economic Cooperation

36 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


 Transition Economics
International Factor Movements and Multinational Enterprises

 The Multinational Enterprise


 Motives for Foreign Direct Investment
 Country Risk Analysis
 International Trade Theory and Multinational Enterprise
 International Joint Ventures
 International Labour Mobility
The Balance of Payment

 Double Entry Accounting


 Balance-of-payment Structure
 Current Account Conflict
 Balance of International Indebtedness
Foreign Exchange

 Foreign Exchange Market


 Types of Foreign Exchange Transactions
 Interbank Trading
 Forward and Futures Market
 Foreign Currency Options
 Exchange Rate Determination
 The Forward Market
 Interest Arbitrage
Exchange Rate Determination

 Determines Exchange Rate


 Determining Long-run Exchange Rates
 Inflation rates, Purchasing Power Parity and Long-run Exchange Rates
 Asset-Market Approach
 Exchange rate Overshooting
 Forecasting Foreign Exchange Rates

37 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Balance-of-payments Adjustments

 Price Adjustment
 Interest Rate Adjustment
 Financial Flow and Interest Rate Differentials
 Income Adjustments
 Monetary Adjustments
Exchange Rate Adjustments and the Balance of Payments

 Effects of Exchange Rate Changes on Cost and Price


 Cost-Cutting Strategies of Manufacturers in Response to Currency Appreciation
 The Elasticity Approach to Exchange Rate Adjustment
 J-Curve Effect
 The Absorption Approach to Exchange Rate Adjustment
 The Monetary Approach to Exchange Rate Adjustment
Exchange rate System and Currency Crisis

 Exchange Rate Practices


 Fixed Exchange Rate System
 Floating Exchange Rates
 Managed Floating Rates
 The Crawling Peg
 Currency Crises
 Capital Controls
Macro-Economic Policy in an Open Economy

 Economic Objectives of Nations


 Policy Instruments
 Monetary and Fiscal Policy in a Closed Economy
 Monetary and Fiscal Policy in an Open Economy
 Inflation with Unemployment
 International Economic policy Coordination

38 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


International Banking

 Nature of International Reserves


 Demand for International Reserves
 Supply of International Reserves
 Foreign Currencies
 International Lending Risk
 The Problem of International Debt
 Debt Reduction and Debt Forgiveness
 The Eurocurrency Market

39 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


AN INTRODUCTION TO A MATHEMATICAL TREATMENT OF
ECONOMICS (Extra Book)

Course Objective:
This book “An Introduction to A Mathematical Treatment of Economics” of Chartered Economist®
Education Program covers the mathematical concepts used in economics, on which an economist works
and takes an economics decision or analysis.

The objective of this book is to provide an overview of various aspects of mathematical economics and
their analyses. Because of the complex nature of the mathematics, this book places an extra emphasis
on the understanding of the simple Keynesian model of income determination in a closed economy.

The concepts of mathematical economics covered in this book include the simple linear models,
application of derivatives, maxima and minima, an introduction to dynamics, introduction to matrix
algebra and application of linear algebra. Various techniques for the study of mathematical economics
are illustrated in detail.

It is important for a Chartered Economist to have a basic knowledge of the mathematical economics
used globally.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the mathematical economics


 Able to differentiate between economics and mathematical economics
 Describe the importance of mathematics in modern economics
 Understand different techniques of mathematics tools used in modern economics
 Understand the linear models
 Describe the application of derivatives
 Describe the economic application of maxima and minima
 Explain the importance of the integration and exponential functions
 Understand the concepts of the matrix algebra
 Understand the input-output analysis
 Explain the application of linear algebra

40 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
 Fundamental Techniques
 Simple Linear Models
 Introduction to Calculus
 Application of Derivatives
 Maxima and Minima
 Economic Application of Maxima and Minima
 Functions and the Application of more than one Variable
 Constrained Maxima and Minima and their Application
 Introduction to Dynamics
 Integration and Exponential Functions
 Application of Dynamics
 Matrix Algebra
 Application of Linear Algebra
 Input – Output Analysis

41 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


INTRODUCTORY ECONOMETRICS A MODERN APPROACH (Extra Book)

Course Objective:
This book “Introductory Econometrics a Modern Approach” of Chartered Economist® Education
Program covers the econometrics concepts used in economics, on which an economist works and takes
an economics decision or analysis.

The objective of this book is to provide an overview of various aspects of econometrics and their
analyses. Because of the complex nature of the econometrics, this book places an extra emphasis on the
understanding of the regression analysis with cross-sectional data and time series data. This book also
emphasis on understanding of the advanced tools used in the economics like – advanced panel data
methods, two stage least squares, simultaneous equations models, advanced time series topics, etc.

The concepts of econometrics covered in this book include the simple regression model, multiple
regression analysis, OLS Asymptotics, Hetroskedasticity, regression analysis with time series data, etc.
Various techniques for the study of econometrics are illustrated in detail.

It is important for a Chartered Economist to have a basic knowledge of the econometrics used globally.

Learning Outcome Statements

After studying this content module, you should be able to:

 Understand the concept of the econometrics


 Able to differentiate between economics and econometrics
 Describe the importance of economic date
 Understand different techniques of regression model
 Understand the multiple regression analysis
 Describe the application of OLS asymptotics
 Describe the economic application of multiple regression analysis
 Explain the importance of the regression analysis with time series data
 Understand the concepts of OLS wit6h time series data
 Understand the concepts of correlation
 Explain the application of Heteroskedasticity in time series regression
 Describe the advanced panel data methods
 Understand the concepts of instrumental variables estimation
 Explain the two-stage least squares and advanced time series topics

42 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.


Detailed Topic List
 What is Econometrics?
 Structure of Economic Data
 Simple Regression Model
 Multiple Regression Analysis: Estimation
 Multiple Regression Analysis: Inference
 Multiple Regression Analysis: OLS Asymptotics
 Multiple Regression Analysis: Further Issues
 Multiple Regression Analysis with Qualitative Information: Binary Variables
 Heteroskedasticity
 Specification and Data Issues
 Regression Analysis with Time Series Data
 Using OLS with Time Series Data
 Correlation and Heteroskedasticity in Time Series Regression
 Pooling Cross Sections Across Time
 Advanced Panel Data Methods
 Instrumental Variables Estimation
 Two Stage Least Squares
 Advanced Time Series Topics

43 CE Course Curriculum | American Academy of Financial Management India Pvt. Ltd.

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