Economics of global investment decisions

Government regulators, tax authorities and private firms routinely assess large-value project proposals where policy settings and negotiation strategies often drive the final investment decision. Investment is a key determinant of economic and social outcomes globally, with large-value investment decisions attracting significant attention from local, political and industry stakeholders. This reflects the tension between the desired return on capital, local economic and community benefits, government objectives, and uncertain project outcomes. This gives rise to a complex and nuanced investment decision making process that brings together knowledge of microeconomics (firm behaviour, game theory), macroeconomics, corporate finance, accounting and strategy. This unit is an applied course focusing on the (i) economic and financial drivers, (ii) industry and government objectives and (iii) strategic thinking that underpin large-value global investment decisions. The unit will highlight the inherent trade-offs, constraints, and short- and long-term outcomes that arise from the global investment process through hands-on applications. In particular, a team-based mock project proposal will be assessed from both government and firm perspectives to inform formal rounds of negotiations that mimic a real-world investment decision process.