Economics and Business Economics docx

This brochure contains information about the Bachelor’s degree programme in Economics and Business Economics.. If you choose the three-year Economics and Business Economics programme at

2013 – 2014

Economics and

Business Economics

This brochure contains information about the

Bachelor’s degree programme in Economics

and Business Economics There are separate

brochures providing details about the Master’s

programmes For more information see

www.rug.nl/masters.

Economics and Business Economics

in Groningen

1 Reasons for studying Economics

and Business Economics

1 Business Economics specialization

Welcome to The Netherlands

Situated in the north-west of Europe, the Netherlands is the gateway to Europe: one of the founding members

of the EU, high standards of education, health care and social equality, and close to most European capitals

› Study in an international environment

› Dedicated to student involvement programmes

Facts & Figures

› 92 English-taught degree programmes

› 15 English-taught double degree programmes

Information for international prospective students

Qiyue Yan (26)

senior student

‘I am from China I decided to come to Groningen to study for

several reasons First of all the education is entirely in English

It also appealed to me that Groningen has a long history, but

at the same time stresses new frontiers of knowledge in both

teaching and research In addition, everything I read pointed to

openness toward students with different backgrounds Finally,

practically speaking, I was able to afford the cost of studying at

Groningen.’

International applicants

Admissions requirements

Applications will be assessed on an

individual basis The admissions procedure

includes an evaluation of your academic

credentials, including your secondary

school grades and English proficiency

(TOEFL: 580/237/92; IELTS: 6.5; Cambridge

Proficiency A/B/C or Cambridge Advanced)

You should have passed mathematics as a

standard/methods level subject during your

secondary school education

Apply before

1 May 2013 for all international applicants

Tuition Fee

› EEA-students € 1,771 per year

› non-EEA students € 7,500 per year

› Already completed a Bachelor’s degree

of a Dutch university or a Dutch HBO?

You will be charged a higher tuition fee

› If you pay the statutory tuition fee and

finishing the Bachelor takes you more

than four years, you will be fined € 3,000

Books and other study materials should

come to no more than € 650 per year

to cities like New York, Paris, London and Beijing In fact,

it still enjoys one of the lowest costs-of-living in Europe

Housing

€ 300–450 / month(administration € 300 once)

ECONOMICS AND BUSINESS ECONOMICS IN GRONINGEN

Reasons for studying Economics and Business Economics

How can an enterprise best market a new product? Which growth

figures does HTC need to convince its stakeholders to invest more in

the telephone market? Why do European firms open branches in Asia?

These are the kinds of challenges that are faced by entrepreneurs and

business managers at all levels of a company How they solve them has

important implications for both their own company and others, as well

as local, national and international economies and society at large

If you choose the three-year Economics and Business Economics

programme at the University of Groningen you will see how business

experts and policymakers attempt to stimulate both corporate and

economic activity This programme will give you the theoretical

tools and analytical skills needed to address complex and sometimes

controversial issues

Economics and Business Economics is an internationally accredited

programme, ensuring a high quality education that meets the AACSB

standard, a standard which only five percent of universities reach

worldwide The programme is entirely in English During the first year –

the foundation year – all students take the same courses In the second

year you will decide whether you will specialize in Business Economics,

Economics, or International Economics and Business In the third year,

you are offered the opportunity to study one semester abroad

Business Economics specialization

What is the best way to run an organization? In the business economics specialization (‘bedrijfseconomie’ in Dutch) you learn to understand decision-making and behaviour of people within an organization from

an economic point of view You learn about all kinds of things, including how to advise on the right investments (and how to finance them), marketing, accounting and human resource management

Economics specialization

If you are interested in social and economic problems, the economics specialization may be the perfect choice for you Economists develop models to obtain an understanding of economic phenomena They look

at economic data, make sense of it and explain its implications to policy makers It could be said that economics is a way of thinking, looking at the world and approaching human choice in conditions of scarcity, and

as such, the number of applications is almost limitless

International Economics and Business specialization

The world has become more and more integrated, but businesses still have to deal with stakeholders with diverse social norms and expectations They also have to handle sometimes conflicting regulations, cope with different legal systems and balance multiple

A company such as Philips has various investment options But will

more employees, different machines or a new marketing strategy actually lead to more profit? And what are the risks? Economics and Business Economics are not just valuable tools for addressing decision-making issues within organizations, but also for the analysis of global topics

such as the world financial crisis, the environment, health care and

international business needs.

The Faculty of Economics and Business building

A COMPLETE PROGRAMME Economics and Business Economics in Groningen is a complete programme You begin with a broad foundation year in which global and local economics and business issues are covered, and can then choose to specialize in the discipline that interests you most

ECONOMICS AND BUSINESS ECONOMICS IN GRONINGEN

currencies The international economics and business specialization

gives you the tools to understand and possibly influence the behaviour

of international companies, intergovernmental organizations and

non-governmental agencies in a global business environment For instance:

where in the world would you advise Appelsientje to harvest oranges?

It also includes analyses of how the international economic environment

affects the strategies of firms and other international actors

The degree programme in Groningen

With their active research agenda the academic staff members have

many theoretical and empirical publications to their credit Their

awareness of advances in the field and their collective knowledge and

know-how is reflected in their teaching and mentoring They have

contacts with businesses and institutions worldwide, and this opens

doors to exchange programmes

Facilities

Of course your surroundings are also important Our buildings are

modern, comfortable and well equipped The main University Library has

a core collection for each discipline but we also have our own library with

an extensive – and still growing – economics and business collection

As well as plenty of places to study, our Student Plaza has meeting

rooms and, if you are in need of a break, a café There is free wireless

access throughout the complex, so you can browse the web, check your

e-mail and look for updates on the student intranet, which has links to

practically all the information about the programme you will need

About Groningen…

Student life in Groningen doesn’t need much of an introduction

Groningen is known for being a fun, safe and vibrant student city It is

large and interesting enough for you to enjoy yourself, yet still small and

pleasant enough for you to feel at home Roughly one out of every six

people living in Groningen is a student! The nightlife and the cultural,

sporting and recreational opportunities are excellent, as you will soon

› www.rug.nl/feb/studiekiezers (information for Dutch prospective students)

› www.rug.nl/honours (Honours College University of Groningen)

Is this the programme for you? Students who choose this degree programme are interested in understanding some of the most fundamental forces that drive our world They are open to cultural differences and are comfortable with the prospect of being abroad In a word, they are adaptable.

The Batavia

Replica of the Batavia, a Dutch East India Company ship launched in 1628 The Dutch have been involved in international trade for a long time The Dutch East India Company, the VOC, was the first multinational corporation and the first company anywhere to issue stock and pay dividends (Photo: Jaap Roskam)

Acquisition of supermarkets

One of the most stirring economic events in The Netherlands has to be the recent acquisition of the

supermarket chain C1000 by its competitor Jumbo The Dutch Competition Authority (NMa) has

examined the situation and, after thorough economic analysis, concluded that Jumbo is allowed to

acquire over 400 C1000 stores One condition remains, however, as Jumbo has to sell 18 stores where

competition could be severely affected The NMa does not foresee any problems on national level, as

Jumbo’s future market share of 23% is still relatively limited after the acquisition.

A personal

approach

Omiros Kouvavas (27)

first-year student of Economics and Business Economics

‘My Bachelor’s degree programme in Economics and Business Economics is actually my second Bachelor’s programme I always wanted to work in the field of economics, so after

my first degree I decided to go for it

My home country is Greece, but I decided to come to the Netherlands because of the combination of high quality education and affordable tuition fees I chose the University of Groningen because out of all the Dutch universities its approach was the most personal, as demonstrated by its admission process

The programme is pretty intensive, but it is well structured and allows motivated students

to excel I will start the Honours programme soon, which has a heavier workload I found that I had some free time on my hands and the Honours programme seemed an extra opportunity to develop myself academically.’

ECONOMICS AND BUSINESS ECONOMICS IN GRONINGEN

How to sell an innovative new bike?

Imagine that you and a partner have come

up with an innovative new bike You are now

considering setting up as a bike maker

The Business Economics point of view

You have found a way to produce the bike You need

start-up money, so you start looking for funds and

comparing the different terms and conditions of

potential investors You need to come up with a

good marketing strategy, and may need to reserve

exclusive rights with a patent You obviously have

to think about efficient and effective use of your

resources It’s a handmade bike Would automating

the bike-making process be worthwhile or should

you hire more staff? What will it cost to produce the bikes? You investigate how much you will need to spend on materials and supplies.

The Economics point of view

You try to determine how many bikes you could feasibly sell What number would be cost-effective?

In order to determine the price of the bike on the market you look at what other bikes are going for

Then you try to determine how much consumers would be willing to pay for your bike You want to find the ‘optimal price point’ that maximizes your profits You also try to understand the bike industry and whether there are any government regulations.

The International Economics and Business point

of view

After a while, you begin to think that maybe you should sell your bikes abroad Maybe customers elsewhere would be willing to pay higher prices You might want to use trade intermediaries to reach foreign buyers, but you still need to consider transportation costs and whether tariffs, quotas or differences in government standards would make it difficult to export your bikes Maybe you could make bikes where the customers are, rather than shipping them worldwide Should you find a partner in the new location? What about the currency or currency fluctuation?

ECONOMICS AND BUSINESS ECONOMICS IN GRONINGEN

ExCELLENCE ALLOwED!

Gifted and exceptionally motivated students are given the opportunity to make the most

of their talents via the University

of Groningen Honours College

Completing this challenging programme will result in an additional Honours diploma

Students follow special Honours workshops and other deepening courses alongside their usual Bachelor’s degree courses They also organize guest lectures and company visits Students also follow a number of broadening courses and training programmes with Honours students from other faculties There is a selection procedure More information:

340 first year students in

Economics and Business

THE CONTENT OF THE DEGREE PROGRAMME

The Dutch education system

Each academic year has two semesters A semester consists of two

blocks of seven lecture weeks, with an examination period at the end

of each block The first semester runs from September to February,

the second from February to July We use the European Credit and

Transfer System (ECTS), which expresses student workloads and learning

outcomes in terms of credit points One credit point (EC) represents

28 hours of time spent studying, attending classes, participating in

group work, working on individual and team projects, and the like Each

course is worth 5 EC; the Bachelor’s thesis is worth 10 EC A Bachelor’s

degree comprises 180 EC

Teaching takes place in the form of lectures, tutorials and practicals It

is important that you prepare ahead for lectures, as all of the material

cannot be covered in the time allotted Lectures focus on the main points

and particularly difficult aspects of the assigned literature, whereas the material is discussed in more detail in tutorial groups In the tutorials you talk about the literature and lectures, and go over individual assignments and joint work Practicals give you an opportunity to work

on assignments and presentations in even smaller groups There is usually at least one written exam per course Your final mark is usually calculated from your exam results and marks for assignments

Propaedeutic phase

The first week is the Faculty Introduction Week This week not only marks the start of your degree programme, but you will also get to know your new environment through all kinds of workshops and activities and you start planning your study career During the first year of the programme you will take the same courses as your fellow

The Bachelor’s degree programme in Economics and Business Economics consists of two phases: the propaedeutic phase (first year) and the post- propaedeutic phase (second and third years) In the second year you

must choose between the three specializations of business economics, economics, and international economics and business

D€pr€$$ion!

A worldwide credit crisis is nothing new Ever since the Greeks first used money in 600 BC there has

been the potential for economic turmoil we seem to be caught in a never-ending cycle of economic

crises like the wall Street Crash of 1929 The course History of Economic Thought covers the work

of classic economists such as Adam Smith and famous twentieth-century economists such as John

Maynard Keynes and Milton Friedman Studying the past may be just what is needed to find real

solutions for the future.

THE CONTENT OF THE DEGREE PROGRAMME

students These include introductions to Finance and Financial

Accounting, International Economics, International Business and

Marketing You will also tackle the fundamentals of Micro- and

Macroeconomics and the basics of Mathematics and Statistics You will

further write a short research paper, an essential aspect of academic life

Throughout your studies you will learn how to combine knowledge and

research methods in order to become an experienced researcher Finally,

you will take an English language course in your first year to develop

academic writing and presenting skills

Micro- and Macroeconomics

These are arguably the most fundamental courses In Microeconomics

you will consider the choices made by consumers and producers in

markets You will learn how to forecast what they will do and understand

why they do what they do Macroeconomics covers whole economies You

will look at changes in national income and employment, for instance,

and at topics ranging from ageing populations to financial and monetary

crises

Finance, Financial Accounting and Marketing

In Finance and Financial Accounting you will find out how firms acquire,

use and account for capital You will learn about shares, bonds and

options, company cash flows and capital budgeting You will see how

management strategy and company results are reflected in financial

accounts In Marketing you will learn about product design, pricing,

promotion and distribution, and about how to meet the needs and expectations of customers

International Economics and International Business

In International Economics you will learn about the global economy and how it functions as well as about international institutions and international trade theory and policy In International Business you will learn that multinational firms attempt to spread the fixed costs of developing new products and processes among customers worldwide, but that they are often hampered by international differences in tastes and conditions of use

Finally, English is vital because all of the material is delivered in English All of these courses above form your toolkit This knowledge and these skills will enable you to write your first research paper at the end of the first year

At the end of the first year you will be issued with a binding study advice

We presume that you will obtain all your credits If you have not earned

45 of the 60 credit points, you will have to leave your degree programme You must also complete the first-year programme within two years (The BSA threshold may be raised to 50 EC in 2013, and the BSA may also be introduced for the second and third years.)

Supermarket offers: clever marketing?

How do you influence consumer behaviour? which special offer can you best implement?

Supermarkets that give away limited offer free stickers or toy figurines at the till will often see an immediate increase in profits But there is little consideration of the long term here This is the job of business economists Do the new customers attracted by the special offers stay faithful to the super- market? with a big collection of football cards the increased profits will last longer than with a set of Smurfs that is soon complete But what about the risks? If the special offer doesn’t catch on, you will

be left with a warehouse full of ‘wuppies’ or sets of saucepans

Petra Besselink (21) third year student in Economics and Business Economics

‘Business Economics is all about studying real-life events Through lectures, work groups and assignments you deal with current

topics and learn about them The assignments are all group assignments, so you work together with fellow students Most of the time you can choose your own co-workers, so you get to know a lot of people It’s great fun and you can also learn from each other

The most interesting class I’ve had so far is Finance We learned about stock prices and bond prices, how to evaluate a financial report

to judge the value of companies and what choices to make when it comes to investments I knew nothing about this topic before, so it was very interesting to me I am now thinking about doing a master in Finance after I finish my bachelor thesis, which I’m working

on at the moment I like the combination of different subjects within the specialization Business Economics Combining accountancy, mathematics, and finance: it’s a great recipe for a fascinating bachelor programme

And Groningen is a wonderful town with an active student life Studying Economics and Business Economics in Groningen was my first choice and I wouldn’t do anything different if I had to choose again.’

› Petra tells more about promotional activities during football championships in a video on www.rug.nl/video/ba-ebe

Studying real-life

events

Joint part

Bachelor’s thesisEconometricsEconomics of BankingFinance

Foreign Direct Investment and TradeInternational MacroeconomicsMathematics

Microeconomics: Industrial Organization

Business Economics

Asset PricingCorporate FinanceEmpirical Research PaperFinancial Statement AnalysisHuman Resource ManagementManagement AccountingMarketing ResearchOperations and Logistic ManagementPhilosophy and Ethics of BusinessStudy Abroad / Minor

Economics

Empirical Research PaperGrowth, Institutions and BusinessHistory of Economic ThoughtLabour Economics

MacroeconomicsMathematicsMicroeconomicsPolitical EconomicsPublic FinanceStudy Abroad / Minor

International Economics and Business

Development EconomicsEconomic Organization TheoryEmpirical Research PaperGlobal Development StudiesGrowth, Institutions and BusinessInternational Business StrategyInternational Trade

Multinational Firms and Global BusinessPhilosophy and Ethics of BusinessStudy Abroad (IE&B Minor)

THE CONTENT OF THE DEGREE PROGRAMME

BACHELOR’S DEGREE PROGRAMME in Economics and Business Economics

to financial markets for example

In addition to these courses, you will choose between a specialization

in Business Economics, Economics or International Economics and Business In all of these specializations you will need to write two research papers: an empirical research paper at the end of your second year and your Bachelor’s thesis at the end of your third year

Business Economics

If you choose to specialize in Business Economics, you will develop your skills in Management Accounting, Asset Pricing and Corporate Finance Here you learn to deal with the financial decisions that businesses make in order to maximize their corporate value In Financial Statement Analysis you learn to analyse financial reports and thus understand risk and profitability In Operations and Logistics Management,

Second and third years