Chapter 2: Economics - McGraw-Hill Introduction to Business

Closed Baby Formula Plant Resumes Production

August 31, 2022

Earlier this year, we looked at how the nationwide shortage of baby formula was poised to continue for months after Abbott Nutrition shut down a Michigan plant in February. An inspector from the Food & Drug Administration (FDA) discovered a leaking roof in the facility, pools of water on the floor, and cracks in production equipment used to produce the brand Similac. FDA commissioner Dr. Robert Califf described the conditions as “egregiously unsanitary” while acknowledging that the federal agency should Continue reading →

Entrepreneurship, Ethics, FDA, Food & Drink, Global, Manufacturing, Operations Management, Regulation, Supply & Demand

Bonus Chapter A: Business Law, Chapter 15: Distribution, Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management

[VIDEO] How Supply-Chain Bottlenecks Shifted to East and Gulf Coast Ports

August 26, 2022

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Global supply chains have been all out of sorts since the start of the pandemic, but for the most part traffic and delays have been isolated to ports on the Pacific. As the video below explains, though, bottlenecks have now moved to East and Gulf Coast ports that are unprepared for this influx of ships and container boxes.

Questions:

What are some reasons why shipping traffic and delays have moved from Pacific ports to East and Gulf Coast ports? Continue reading →

Operations Management, Pandemic, Product Distribution, Shipping, Supply & Demand, Supply chains, Transportation

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

[VIDEO] How Consumer Confidence Relates to Inflation

July 29, 2022

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Consumer confidence in the economy has taken a nosedive as prices climb higher due to rising inflation, potentially indicating that the U.S. is on the road to a recession. This video looks at how the government collects data on consumer confidence while also examining the ways that low economic expectations can further fuel inflation.

Questions:

Why does the government collect data on consumer confidence? What sort of questions do they ask participants?
How can declining consumer confidence potentially drive inflation even higher?

Consumer Confidence, Consumer Research, Economics, Federal Reserve, Focus Groups, Inflation

Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Videos

The Dollar Soars as Global Currencies Struggle

July 22, 2022

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The U.S. dollar is the world’s most important currency, serving as one side of 90 percent of all foreign exchange transactions. Before the pandemic, the U.S. dollar accounted for $6 trillion in daily activity as everyone from tourists to multinational corporations depended on this customarily stable currency. After the turmoil of the last few years, however, the dependable dollar has skyrocketed in value to its highest level in 20 years.

The value of the dollar has jumped 10 percent Continue reading →

Bonds, Currency, Ethics, Federal Reserve, Global, Inflation, Supply & Demand

Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility

Pilots Demand Big Changes from Airlines

July 12, 2022

NickelsMcHughMcHugh

Since the start of the summer travel season, air carriers have canceled thousands of flights as they grapple with bad weather, high fuel costs, and rampant inflation. Along with these problems, airlines are also encountering increased resistance from one of their most important groups of employees: pilots. Faced with large workloads and an unpredictable post-pandemic environment, pilots are demanding substantial wage increases as well as quality of life benefits from their employers.

According to analysts, airlines are likely to Continue reading →

Airlines, Global, Human Resources, Labor Relations, Motivation, Pandemic, Supply & Demand, Travel, Unions

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

[VIDEO] Why Tech Stocks Are Dropping

June 24, 2022

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Last week, we looked at how declining stock prices are signaling to analysts that an economic recession could be on the horizon. This video looks at how the recent downturn has been especially grim for tech companies, whose shares are down significantly due to rising interest rates and global instability.

Questions:

What are some factors that have caused tech stocks to fall sharply in recent months?
How have hiring decisions by companies like Facebook contributed to the tech stock downturn

Federal Reserve, Hiring, Product Distribution, Securities Markets, Stock Market, Supply & Demand, Supply chains, Tech sector

Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 3: Globalization, Videos

Thousands of Flights Delayed or Canceled over Holiday Weekend

June 22, 2022

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Americans traveled in droves over the busy Father’s Day and Juneteenth holiday weekend, leading to widespread delays and cancellations at airports despite the best efforts of carriers. All told, airlines canceled more than 5,000 flights over the weekend while almost a third of all arriving flights on Friday were delayed. Travelers experienced similar moments of chaos at airports over Memorial Day weekend, reflecting an industry struggling to return to normal after the pandemic.

According to airlines, poor weather and high Continue reading →

Airlines, Compensation, Ethics, Global, Operations Management, Pandemic, Supply & Demand, Transportation, Travel, Unions

Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, 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

Dropping Stocks Bring Fears of Recession

June 17, 2022

NickelsMcHughMcHugh

Yesterday, the S&P 500 dropped more than 3 percent, continuing a long decline for stocks despite investors’ hopes for a rally. This places the index down 24 percent from its previous highs in January, further pushing stocks into bear market territory. Stock markets turn from bulls to bears once they drop more than 20 percent from recent peaks, potentially indicating that the economy is headed towards a recession. In fact, if losses continue at this rate, the S&P could experience Continue reading →

Ethics, Federal Reserve, Product Distribution, Recession, S&P 500, Securities Markets, Stock Market, Supply & Demand, Supply chains

Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 1: Taking Risks and Making Profits, Chapter 20: Money and Financial Institutions, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility

[VIDEO] How Inflation Impacts U.S. Households

June 10, 2022

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Over the last year, Americans have seen prices skyrocket for everything from food to fuel, leading to higher bills and strained budgets. This video looks at how inflation has played out across the economy, from increased costs for consumer staples like meat and eggs to rising rents that are a result of low housing supplies.

Questions:

What long term economic factors have led to increased meat prices in recent months?
How has a lack of housing construction since the 2008 Continue reading →

Energy, Food & Drink, Global, Housing, Manufacturing, Operations Management, Petroleum, Product Distribution, Russia, Supply & Demand, Supply chains, Ukraine

Chapter 15: Distribution, 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, Videos

Baby Formula Shortage Could Continue for Months

May 31, 2022

NickelsMcHughMcHugh

Since the beginning of the year, parents around the country have struggled to obtain baby formula due to a nationwide shortage. Although Covid-related supply chain snags have contributed to the problem, matters became considerably worse once the formula manufacturer Abbott Laboratories instituted a recall in May. The company produces brands like Similac at its plant in Sturgis, Michigan, which shut down following the recall. Consumers filed formal complaints with the Food & Drug Administration (FDA) about infant illnesses, leading to Continue reading →

Ethics, FDA, Food & Drink, Global, Manufacturing, Operations Management, Regulation, Supply & Demand

Chapter 15: Distribution, 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