Back to basics: Why should you study economics?

November 11, 2019 1:39 AM

Economics is the only discipline that integrates the concepts of history, politics, sociology, psychology and mathematical-statistical models.

There is a greater need to educate and equip aspiring managers in this discipline

By Asmita Chitnis

According to Kristalina Georgieva, MD, IMF, the global economy is in a synchronised slowdown and has called for a coordinated fiscal response to arrest this.

It is also important that focused efforts are put in to improve overall economic understanding of future business managers. Unfortunately, barring one or two courses, economics as a subject is rarely the focus of educational institutes unless it is offered as a major or specialisation.

The principles and theories of economics form the foundation of GDP rate, bank interest rates, monetary policy, inflation, exchange rates, stock market and FDI policy of a country. It enables enterprises to understand demand-supply dynamics, make efficient use of their resources and determine the prices of their products/services in relation to customer behaviour and a country’s economic policy. When students with good economic concepts join an organisation, they can be instrumental in optimising business decisions while creating economic value.

Economics is the only discipline that integrates the concepts of sociology, history, politics, psychology and mathematical-statistical models. It can come handy in tackling complex data, establish co-relations and take a well-rounded approach to problem-solving. These days, sharp analytical bent of mind and critical thinking are key soft skills that employers look for while hiring.

A career as an economist definitely calls for educational qualification in economics. But there are other careers like banking, investment, insurance, civil services, financial analysis, auditing, risk management, public policymaking and law where knowledge of economics is a key requirement. Economics finds its applications in every sector ranging from agriculture and manufacturing to environment and technology. Economics also lays strong foundation in socio-political careers.

Knowledge of economics adds value to a CV and makes a person’s profile globally relevant. Economics introduces students to various problems of the society and how they affect employment, education and standard of living. It equips them to make informed decisions that can have a far-reaching positive impact on the society.

With the world becoming more volatile, uncertain, complex and ambiguous, there is a growing demand for professionals who can understand market forces and human behaviour from the economic point of view. So, there is a greater need to educate and equip aspiring managers in this important field.

(The author is director, Symbiosis Institute of International Business (SIIB), Pune)

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