Chapter 2: Economics - McGraw-Hill Introduction to Business

[VIDEO] How the FDIC Insures Customers’ Deposits

March 24, 2023

The Federal Deposit Insurance Corporation (FDIC) does not get much attention unless something goes drastically wrong in the financial world, such as the recent collapse of Silicon Valley Bank (SVB). This video explains how the organization covers customers’ deposits in order to prevent bank runs, and how the fall of SVB presented the FDIC with some unique challenges.

Questions:

Why was the FDIC formed, and how does it protect customers’ deposits?
How did the FDIC’s handling of the SVB collapse Continue reading →

Regulation, Economics, Federal Reserve, Securities Markets, Financial Crisis, Ethics, Stock Market, FDIC, SVB, Bailout

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

Companies Confuse Job Seekers with Fake Listings

March 23, 2023

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Although the collapse of SVB and the resulting economic fallout has rattled global markets, many companies are hoping to restore faith among investors by showing signs of growth. The clearest sign of a growing business is one that is hiring people, after all, leading some firms to place job listings with no intention of actually bringing anyone on board. In fact, a recent survey of 1,000 hiring managers found that 27 percent of respondents reported leaving job listings up for Continue reading →

Banking, Hiring, Turnover, Economics, SVB, Ethics, Human Resources

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 11: Human Resource Management, Bonus Chapter A: Business Law

[VIDEO] How SVB Collapsed in 36 Hours

March 16, 2023

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The video below provides an in-depth look at Silicon Valley Bank’s downfall, from its heavy investments in bonds to the bank run that has sent shockwaves through the market. (For more information on investigations into potential misconduct at SVB, check out this video.)

Questions:

How did SVB’s substantial investments in bonds backfire on the bank?
Do you think federal regulators should place limits on how much money banks like SVB can invest? Why or why not?

Stock markets, FDIC, Financial collapse, Banking, Regulation, Federal Reserve, Ethics, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Videos

FDIC Intervenes after Silicon Valley Bank Failure

March 14, 2023

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Last Friday, a combination of imprudent decision-making and panicked customers led to the collapse of Silicon Valley Bank (SVB), a 40-year-old financial institution based in Santa Clara, California. The Federal Deposit Insurance Corporation (FDIC) stepped in to prevent further fallout, putting nearly $175 billion in customer deposits under the regulator’s control. SVB’s meltdown represents the second largest bank failure in U.S. history, and the largest one since the 2008 financial crisis. As a result of this chaotic situation, stock prices Continue reading →

Banking, Regulation, Federal Reserve, Supply & Demand, Ethics, Stock markets, FDIC, Financial collapse

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] Why is Everything Getting So Expensive?

March 10, 2023

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Prices on everyday products like groceries and diapers have increased dramatically in the last couple of years, with inflation often being identified as the culprit. This video takes a close look at the potential causes of the post-pandemic trend of rising inflation, examining why supply chain issues and plain old markups could be responsible for ever-increasing prices.

Questions:

What are the potential causes of inflation outlined in this video? Which factor do you think is the most likely cause Continue reading →

Rising Inflation Could Damage Economic Gains Made by Women

March 8, 2023

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People around the world celebrate International Women’s Day every March 8th, paying tribute to the achievements of women while also campaigning for greater gender equality. While issues like equal pay and opportunity for women have certainly received a lot of attention in recent years, companies still have a long way to go before they reach total parity. To make matters worse, economists say that women are disproportionately feeling the effects of the cost of living crisis brought on by rising Continue reading →

Motivation, Global, Ethics, Regulation, Human Resources, Hiring, Compensation, Gender equity, Wage gap, Management

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions

[VIDEO] How Commodity Markets Work

March 3, 2023

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Florida’s orange crop is shrinking year after year, sending commodity prices skyrocketing for orange juice concentrate. This video examines the intricacies of commodity markets through the lens of concentrated OJ, looking at concepts like futures contracts and how they affect both farmers and retailers.

Questions:

Why has Florida’s plummeting orange production caused juice prices to increase significantly?
What are the benefits of futures contracts for farmers and manufacturers?

Retail, Pricing, Product Distribution, Operations Management, Agriculture, Commodities, Food & Drink, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Videos

Inflation Fears Sink Stocks to Lowest Point in 2023

March 1, 2023

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Last Friday, the stock market tumbled to its lowest point so far this year, with the S&P 500 falling for three weeks straight while the Dow Jones similarly slumped due to disappointing economic data. Investors expected inflation to decline more at the start of 2023, but experts say that it has actually re-accelerated in recent months. As a result, the Federal Reserve may continue to raise interest rates, a measure used to combat inflation that reduces the amount of Continue reading →

Interest Rates, Securities Markets, Supply & Demand, Global, Stock Market, Inflation, Stock valuation, Regulation, Federal Reserve, Recession

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] Making 100,000 Bagels a Week by Hand

February 22, 2023

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While last week we looked at how Domino’s relies on automation to mass produce its pizza dough, today’s video examines the operations at a company that takes the opposite approach. At Utopia Bagels in New York City, a well-trained staff of specialists make thousands of bagels by hand every day, all driven by a passionate owner whose love for his craft comes through in this video.

Questions:

What are the advantages and disadvantages of making bagels entirely by hand?
What Continue reading →

Specialized labor, Marketing, Motivation, Operations Management, Entrepreneurship, Product Development, Training, Product Distribution, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 10: Motivation, Chapter 11: Human Resource Management, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

Egg Prices Continue to Soar as Inflation Starts to Fall

January 27, 2023

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Food prices hiked by inflation have taken a toll on Americans’ wallets for more than a year, although economists say that costs for a number of commodities are finally starting to fall. But that has not been the case with eggs: the average U.S. price per dozen hit $4.25 in December 2022, up from $1.79 a year earlier. The situation is especially bad in costly markets like California, where 12 Grade A large eggs go for an average of $7.37. Continue reading →

Product Distribution, Operations Management, Food & Drink, Ethics, Supply & Demand, Pricing, Regulation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 15: Distribution, Bonus Chapter A: Business Law