Choosing between IB Business Management & IB Economics: Same Same, But Different

“Which subject should I take? IB Business Management (BM) or IB Economics?”

This is one of the most commonly asked questions by students and parents alike during course selection. Faced with uncertainties surrounding the content and rigour of the course, as well as who their teacher would be, many students tend to default to the course they think will be “easier”.

This article will examine the key considerations for students, parents, and counsellors when navigating the choice between BM and Economics.

Background

Both courses satisfy the Group 3 Humanities requirement for the Diploma Programme (DP). Economics has historically been a popular subject, but in the last decade, the number of students taking BM has increased fourfold. In 2021, the number of students taking BM surpassed the number of Economics students, and the gap continues to grow. Today, the majority of DP students take at least one of BM (~36% of students) or Economics (~29% of students).

Over these five years, BM has also consistently been one of the most popular subjects for students to write their Extended Essay (EE) in, with the assignment providing students the opportunity to investigate an organisation of interest and demonstrate the ability to engage with scholarly research to produce their own thesis.

Course Content & Approach

A common misconception is that BM and Economics cover similar concepts. In reality, this is not the case. BM examines decision-making within an organisation while Economics looks at decision-making at the government or policy-making level.

BM focuses on business strategy and the study of key business functions, including human resources, operations management, finance (accounting), and marketing. Similar to many undergraduate business school courses, BM uses the case study method, helping students develop skills focused on analysing strategic decisions faced by a business by applying course concepts to real-world contexts. The content and method of examination lead many teachers to refer to the course as a “mini-MBA”.

Economics focuses on microeconomics, macroeconomics, and international trade & development. The course is focused on the impacts of various economics policies using models, frameworks, and economic theory. The Economics course is often described by teachers as “policy-focused” and “model-based", giving students a window into the type of content they would learn while taking introductory and intermediate economics courses at university.

Factors Influencing Course Selection

Many students let factors such as perceptions of content difficulty and course rigour impact the course they choose. One of the most common misconceptions among students is the belief that it is easier to score a 7 in BM compared to Economics. While individual experiences vary, IB statistics highlight that the average grade for BM has consistently been slightly lower than Economics over the last 10 years. Rather than course difficulty, students should instead be influenced by their interest & skill set, as well as their university and/or career aspirations when choosing their courses.

In terms of a student's interest and skill set, BM and Economics have very different areas of focus and therefore require very different skill sets to succeed. Business is well suited to students who prefer practical applications of concepts in real-world scenarios. On the other hand, Economics is ideal for students interested in models and theory, and is particularly well suited to those skilled in abstract thinking. Students should carefully consider their best fit based on personal engagement and their interest in the course content.

With regards to a student's university or career aspirations, BM provides a strong foundation for students interested in business-related fields, such as marketing or strategic management. Additionally, BM is a common Humanities choice among those applying to medicine and law due to the applicability of the skills developed through the case study method in these disciplines. Economics is more well suited to those interested in public policy, international relations, or Philosophy, Politics, and Economics, as well as those interested in pursuing academic research at university.

An often ignored third option includes taking both courses, which can be beneficial for students interested in careers in finance or undergraduate business degrees, as the complementary nature of the content will give students a head start in adjusting to the expectations of university-level courses.

Ultimately, there is no "right" or "wrong" choice when selecting between BM and Econ. As long as a student has considered their interest in the material, how their strengths would translate in the course, and their future aspirations (whether at university or in their career), they will arrive at an informed decision about which course is best for them.