Chapter 2: Economics - McGraw-Hill Introduction to Business

Tax Dodging Corporations Cost the U.S. Billions

August 1, 2014

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 →

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

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 →

Ethics, Human Resources, Compensation, Minimum Wage, Seattle

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 →

Exporting, Honda, Global, Manufacturing, Cars, Transportation

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

America’s Minimum Wage Debate

January 19, 2014

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Although the American economy is slowly recovering, the job market is not. Low and minimum wage work has driven much of the recovery while mid-level jobs that disappeared during the recession have failed to rematerialize. Confronted with this bleak “new normal,” many people in both the private and public sectors have called for an increase to the federal minimum wage. Advocates for change point to cases like that of Anthony Goytia, who must supplement his salary as a Wal-Mart clerk Continue reading →

McDonald’s, Ethics, Walmart, Food, Minimum Wage, Labor Relations, Compensation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 10: Motivation, Chapter 11: Human Resource Management, Bonus Chapter A: Business Law

Non-Traditional Students Become the Norm

January 12, 2014

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When people think about the average American college student, their minds often wander to images of fresh-faced teenagers hitting campus right out of high school on their parents’ dime. But in reality, only one-third of the nation’s more than 20 million students enrolled in two- and four-year universities fit that description.

Though it may not surprise seasoned professors, the idea of the “traditional” college student is becoming increasingly outdated. According to recent data collected by the U.S. Department of Education, Continue reading →

Students, College, Demographics, Veterans, Education, Seniors

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization

Bartering for Health Care

November 11, 2013

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It’s a sad fact that nearly 49 million Americans live without health insurance while millions more scrape by with lackluster coverage. With the Affordable Care Act getting off to a rough start and months to go before its full implementation, the nation’s underinsured must often make due with the limited resources at their disposal. In fact, according to Consumer Reports one of the cheapest and most common ways for people to get the care they need is to barter Continue reading →

Health, Bartering, Affordable Care Act, Benefits

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Bonus Chapter A: Business Law, Bonus Chapter D: Personal Finance

Who Does the U.S. Owe Money To?

November 1, 2013

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In the fall of 2013 the U.S. came perilously close to defaulting on its debt. Already reeling from a two-week government shutdown, lawmakers were able to come together at the eleventh hour to raise the debt ceiling through February 7, 2014. If it had failed to do so, then for the first time in history the U.S. would have been unable to pay the interest on Treasury bonds. This would have sent global markets into disarray while almost certainly setting Continue reading →

China, U.S. Debt, Debt ceiling, Government shutdown, Economics, Global

Chapter 2: Economics, Chapter 3: Globalization, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Lineup Changes on the Dow Jones

October 1, 2013

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The Dow Jones Industrial average is often considered a bellwether for the economy. This stock index of 30 large publicly traded American companies offers a snapshot of the nation’s fiscal wellbeing for analysts and day traders alike. Regardless of its popularity, however, the Dow is hardly perfect. Deciding which companies comprise the index is a delicate process that sometimes omits major players. For instance, a couple years ago we shared a story in the newsletter about Apple’s absence from the Continue reading →

Investing, Nike, Visa, Goldman Sachs, Bank of America, Hewlett-Packard, Alcoa, Finance, Dow Jones, Stocks

Chapter 2: Economics, Chapter 17: Accounting, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

How Foreign Investment Helps Emerging Nations

September 14, 2013

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For emerging economies, investment from foreign powers has long been a contentious topic. In fact, as recently as last year protestors lined the streets of India’s major cities against a series of reforms designed to open the country’s retail sector to foreign direct investment (FDI). The laws would allow companies like Wal-Mart and Tesco to buy up to 51% stakes in local businesses. The proposed reforms inflamed the fears of many Indians who felt that the economy would become Continue reading →

Walmart, Global, Brazil, India, Finance, Foreign Direct Investment, Developing Nations

Chapter 2: Economics, Chapter 3: Globalization, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions