Chapter 2: Economics - McGraw-Hill Introduction to Business

Dow Jones Drops by Nearly 3,000 Points in One Day

March 17, 2020

Fears over the spread of coronavirus have upended daily life for millions of Americans and countless businesses. The CDC has recommended that organizations cancel any events with 50 or more people, and restaurants around the country are either switching to take-out only or closing entirely. As a result of the uncertainty surrounding this health crisis, financial markets around the globe are experiencing near-record drops in value. In fact, on Monday the Dow Jones Industrial Average plummeted by about 3,000 points, Continue reading →

Global, Regulation, Ethics, Dow Jones, Human Resources, Stocks, Health, Crisis management, Coronavirus, Economics, Operations 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 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 19: Securities Markets

Coronavirus Closures Lead to Layoffs

March 12, 2020

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Yesterday, the World Health Organization officially classified coronavirus as a pandemic, causing the Dow Jones Industrial Average to plummet by nearly 1,500 points. This rapid decline in the market has reversed more than a decade of expansion for the U.S. economy while companies around the world suffer from border closures and shutdowns. As a result, employees in many struggling industries are facing layoffs as business as usual grinds to a halt.

For instance, the Port of Los Angeles has Continue reading →

Demand for Hand Sanitizer Skyrockets by More than 1,000 Percent

March 10, 2020

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Last week we looked at how fears over coronavirus have caused major events to cancel and governments to restrict travel. Since then, organizers of South By Southwest have called off the festival while Italy has expanded emergency measures for the entire country. That means no public gatherings will be allowed in the Mediterranean nation along with a general ban on travel for all citizens unless they receive special permission. This global escalation of tensions surrounding the Covid-19 virus has Continue reading →

Global, Pricing, Ethics, Regulation, Manufacturing, Supply chains, Labor Relations, Health, Supply & Demand, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law

Coronavirus Uncertainty Hits Travel and Hospitality Companies Hard

March 5, 2020

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With winter starting to wind down, this is the time of year that cities around the world usually prepare for incoming business conferences and big events to bring in thousands of travelers. The annual South by Southwest conference in Austin, Texas, will be held later this month followed closely by spring break holidays and then the Olympics in Japan during the summer. But with cases of coronavirus now appearing in Europe and the U.S., many organizations and governments are either Continue reading →

Ethics, Crisis management, Human Resources, Coronavirus, Conferences, Regulation, Global, Health

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 11: Human Resource Management, Bonus Chapter A: Business Law

Global Stocks Plummet Amid Coronavirus Fears

February 28, 2020

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Stock markets around the world have been falling dramatically all week due to fears surrounding the spread of the coronavirus. If global exchanges continue with this cycle of massive selloffs today, then the past week could represent the biggest stock market drop since the height of the 2008 financial crisis. And it’s not looking too good so far: “We’re drinking from a fireman’s hose this morning,” said Patrick Spencer, managing director at the investment firm Baird. “It wasn’t a good Continue reading →

China, Economics, Supply chains, Operations Management, Health, Global, Travel, Stock Market, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 19: Securities Markets, Bonus Chapter A: Business Law

Poor Potato Crop Leads to Fears of French Fry Shortage

December 6, 2019

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This week, multiple news outlets reported about a poor potato crop in Canada and the U.S. that could potentially affect the nation’s French fry supply. With winter weather arriving early throughout North America, potato growers lost thousands of acres of crops due to freezing temperatures. As a result, the U.S. Department of Agriculture estimates that American spud production will drop by six percent this year. And since potatoes used for French fries tend to be harvested later in the season, Continue reading →

Weather, Product Distribution, Agriculture, Supply & Demand, Canada, Supply chains

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 15: Distribution

Thanksgiving Travelers Hit the Road in Record Numbers

November 26, 2019

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If you have plans to travel this week for Thanksgiving, then you should already know that you won’t be the only one. According to experts, a record number of travelers will either fly or drive at least 50 miles to celebrate the holiday. As a result, the nation’s airports and highways will be jammed with travelers, inevitably leading to widespread traffic and plane delays.

The trade organization Airlines for America estimates that a record 31.6 million people will fly Continue reading →

Vacation, Thanksgiving, Holidays, Airports, Transportation, Travel

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management

Fashion Brands Start Selling Virtual Clothing

November 22, 2019

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Yesterday, we looked at how video game companies earn billions of dollars annually by selling virtual products to an ever-growing market. Inspired by the success of this unusual industry, some clothing companies have started selling digital outfits that don’t exist in the real world. For instance, the fashion label The Fabricant recently sold a virtual dress for $9,500 to the wife of a San Francisco tech executive. Although she cannot actually put on her expensive new outfit, she can Photoshop Continue reading →

Promotions, Fashion, Product Distribution, Virtual Goods, Scarcity, Marketing, Global, Clothing, Entrepreneurship, Product Development

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 16: Place and Promotion, Bonus Chapter B: Technology and New Media

[VIDEO] Why Spend Money in Video Games?

November 21, 2019

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Analysts estimate that last year consumers spent more than $50 billion on virtual items in video games like Counter-Strike and World of Warcraft. This lengthy but highly informative video explains why the market for virtual items has grown bigger than global box office returns for the movie industry.

Questions:

How are in-game economies similar to real-world economic systems?
What are the advantages and disadvantages of online marketplaces that sell virtual goods?

Hurricane Dorian Causes Billions in Damages to the Bahamas

September 10, 2019

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Last week, Hurricane Dorian tore through the Caribbean and up the Southeastern Coast of the U.S., causing major damage all along the way. Two islands in particular, Abaco Island and Grand Bahama, faced huge devastation as a result of the tropical storm. According to the United Nations, more than 70,000 people in the Bahamas are now homeless and in need of food and water. (Click here to view a list of vetted relief organizations that are currently seeking donations.) Continue reading →

Tourism, Marketing, Travel, Global, Natural Disasters, Ethics, Risk Management, Hurricanes, Bahamas, GDP

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Bonus Chapter C: Managing Risk