Chapter 2: Economics - McGraw-Hill Introduction to Business

Trading Pits Become a Thing of the Past

July 30, 2015

Trading commodities is a complicated business. Employees in the industry not only have to possess financial intelligence, they also must be able to seemingly predict the future based solely on projections and estimates. For years traders like these thrived in the “pits” of Chicago and New York’s stock exchanges, shouting about everything from livestock to produce as they searched for deals. These financial foot soldiers eventually became pop culture icons, with frantically yelling floor traders appearing in everything from serious Continue reading →

Human Resources, Innovation, Finance, Product Distribution, Wall Street

Chapter 2: Economics, Chapter 10: Motivation, Chapter 17: Accounting, Chapter 19: Securities Markets

Wisconsin Becomes a Right-to-Work State

March 30, 2015

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Near the end of February, the Wisconsin legislature passed a controversial bill that could change the face of labor in the state. Under the new “right-to-work” law, employees in unionized, private sector workplaces can choose whether or not to pay their union dues. According to Governor Scott Walker and his supporters, the law grants more freedom for individuals to choose where they work. “This legislation will ensure that Wisconsin’s workers have the sole power to determine whether they wish to Continue reading →

Labor Relations, Compensation, Regulation, Right-to-Work, Ethics, Wisconsin, Unions

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law

The Economy and the Plummeting Birth Rate

January 16, 2015

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In 2007 the American birth rate was clipping along at a steady pace. With an average of 69.3 infants being born for every 1,000 fertile-age women, U.S. citizens were making enough babies to keep the population stable. Then the economy took a nosedive the next year and the birth rate quickly followed suit. According to the National Center for Health Statistics, as of 2013 Americans were making only 62.5 babies per 1,000 potential mothers, an amount that falls well below Continue reading →

Economics, Demographics, Health, Birth Rate

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics

The Enduring Power of the Dollar

November 30, 2014

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The stock market crash of 2008 sent shockwaves across the world’s economies, leading many to speculate about the future of American financial policy on the global stage. In the eyes of many experts at the time, the U.S. dollar was especially at risk of losing its decades-long dominance. After all, the inferno of the financial crisis spread so fast because many nations measure their own currency against the dollar. When its value plummeted, so did countless other currencies.

The debacle Continue reading →

Currency, Finance, China, Economics, Global

Chapter 2: Economics, Chapter 20: Money and Financial Institutions

The Myth of the Labor Skills Gap

August 26, 2014

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Economists have long argued that a skills gap is growing among the American workforce. Hundreds of businesses both large and small have echoed this sentiment, claiming that there aren’t enough qualified people to perform certain jobs. However, in most cases this line of thinking simply doesn’t add up. According to the Bureau of Labor Statistics, the number of unemployed people exceeds the number of jobs available in every industry. In durable goods manufacturing, for instance, there are approximately 576,000 idle Continue reading →

Unemployment, Compensation, Ethics, Training, Manufacturing, Labor Relations

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 7: Management & Leadership, Chapter 10: Motivation, Chapter 11: Human Resource Management

EU Nations Add Underground Economies to GDP

August 5, 2014

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Even though the U.S. has a gross domestic product (GDP) valued at nearly $17 trillion, that huge figure still doesn’t come close to providing a complete picture of the American economy. Each year billions upon billions of transactions go undocumented, untaxed, and ultimately unrecorded by official GDP statisticians. Whether it’s earning a few bucks by mowing a neighbor’s lawn or by selling drugs, these concealed deals all form what’s known as the underground economy.

Many economists have said that it’s Continue reading →

Europe, Finance, GDP, Financial Data, Underground Economy, Regulation, Ethics

Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility

Tax Dodging Corporations Cost the U.S. Billions

August 1, 2014

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For decades big companies have done their best to avoid hefty corporate tax rates levied by Uncle Sam. The U.S. government collects 35 percent of a domestically based corporation’s income, a figure based on the entirety of the company’s worldwide revenue. This mighty bite from the bottom line leads many firms to reincorporate their companies in places like the Cayman Islands or Ireland, where the corporate tax rate is just 12.5 percent. While this process of “inversion” is entirely legal, Continue reading →

Regulation, Taxes, Ireland, Cayman Islands, Global, Ethics

Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 17: Accounting, Bonus Chapter A: Business Law

Seattle’s Historic Minimum Wage Raise

July 20, 2014

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In early June, Seattle Mayor Ed Murray signed a bill into law that will raise the city’s minimum wage to $15-an-hour. At more than double the federal level, Seattle’s new wage floor will become the highest in the country once it is fully implemented. Large businesses have until 2017 to reach the $15 mark while small businesses can wait as late as 2021. In both cases, wages will be slowly raised in the intervening years to make the process Continue reading →

Minimum Wage, Seattle, Ethics, Human Resources, Compensation

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law

More Banks Team Up with Western Union

June 12, 2014

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Recent federal banking regulations have placed limits on the fees that financial institutions can charge for things like overdrafts and credit card transactions. Although this has been good news for consumers and merchants, the new rules have reduced revenue streams for banks across the country. As a result, many institutions are looking to make up the difference through additional sources of income, such as Western Union branches.

The more than 160-year-old money-wiring firm sells its services to 52,000 locations throughout Continue reading →

Banking, Finance, Western Union, Financial Services

Chapter 2: Economics, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Honda Becomes an American Exporter

March 31, 2014

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The slow reemergence of American manufacturing has been touted by politicians on both sides of the aisle as an essential force in the recent economic recovery. But in many cases, the manufacturers driving production across the nation aren’t American at all. In fact, Honda recently announced that it built and shipped more cars from the U.S. than it imported here from Japan.

According to Honda executives, the company’s current status as an American exporting power wasn’t the intention when it Continue reading →

Global, Manufacturing, Cars, Transportation, Exporting, Honda

Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management