Economics - McGraw-Hill Introduction to Business

[VIDEO] Why China’s Evergrande Has Global Markets on Edge

October 8, 2021

For weeks, stock markets across the globe have become increasingly volatile as investors await the fate of Evergrande, an enormous Chinese real estate company with more than $300 billion in debt. Analysts predict that the property developer will not be able to pay back what it owes, which would likely have damaging ripple effects across the global economy. The video below looks at Evergrande’s current debt debacle and the possible ways that this situation could be resolved.

Questions:

Why are Continue reading →

Economics, China, Global, Ethics, Corporate bailouts, Real Estate, Stock markets, Debt crisis, Credit crunch

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 18: Financial Management, Chapter 19: Securities Markets, Videos

Continuing Supply Chain Problems Lead to Price Increases

October 1, 2021

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For months, supply chains across the globe have become highly disrupted due to a multitude of factors related to the pandemic. From closed factories and clogged ports to a shortage of shipping containers, supply chain snags are harming small businesses and could possibly affect the flow of goods during the Christmas season. And in the immediate term, shipping issues are contributing to rising inflation which then leads to price increases, something that has been felt by consumers across Continue reading →

Economics, Product Distribution, Operations Management, Supply & Demand, Global, Coronavirus, Manufacturing, Pandemic, Supply chains

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 15: Distribution

[VIDEO] What One Winemaker’s Pricing Decisions Tell Us About Inflation

September 10, 2021

NickelsMcHughMcHugh

Although demand for wine from California’s Napa Valley has never been higher, supply is low across the region after years of drought, wildfires, and then the pandemic disrupted production. This video looks at the inflationary pressures currently weighing on winemakers as they consider whether or not to raise prices on the latest vintages.

Questions:

What inflationary factors are driving winemakers to raise prices on their products?
What are the potential advantages and disadvantages for businesses when they raise prices?

Economics, Marketing, Entrepreneurship, Pricing, Manufacturing, Labor Relations, Product Distribution, Food & Drink, Supply & Demand

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 12: Labor Management and Unions, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

[VIDEO] How Top Banana Moves Over One Million Pounds of Bananas per Week

July 30, 2021

NickelsMcHughMcHugh

Most people probably don’t think about how bunches of bananas make it from farms in Central America to store shelves in the U.S. That’s certainly not the case at Top Banana, a company that handles more than one million pounds of fruit every week. This long but fascinating video takes a look at how Top Banana ripens and ships an enormous amount of bananas through sophisticated logistical processes.

Questions:

Why does Top Banana constantly check to ensure that its Continue reading →

Product Distribution, Economics, Logistics, Operations Management, Food & Drink, Global, Supply chains

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

Shortage of Patio Furniture Reflects Wider Economic Issues

July 8, 2021

NickelsMcHughMcHugh

Yesterday, we looked at how cost-cutting measures used by rental car companies to survive the pandemic have now led to supply problems that are affecting travelers across the country. But rental cars aren’t the only items that are in short supply these days. For instance, a garden supply store called Valley View Farms experienced record sales of patio furniture in March as customers began to emerge from the extended stays at home. Soon after this boom, though, the Maryland retailer Continue reading →

Supply & Demand, Global, Entrepreneurship, Supply chains, Economics, Product Distribution, Operations Management

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 6: Entrepreneurship, Chapter 9: Production and Operations Management, Chapter 15: Distribution

[VIDEO] Why the Global Chip Shortage Is Hard to Overcome

June 22, 2021

NickelsMcHughMcHugh

Last month, we looked at how the global shortage of microchips has severely restricted production of everything from video game consoles to dog washing stations. This video examines the manufacturing process for these precious components and explains why semiconductor production cannot be easily increased.

Questions:

Why is it difficult for manufacturers to speed up production on microchips and semiconductors?
What are some possible solutions for increasing global microchip production?

Automation, Economics, Product Distribution, Operations Management, Supply & Demand, Global, Manufacturing

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

Companies Confront Rising Costs by Reducing Packaging

June 8, 2021

NickelsMcHughMcHugh

The pandemic led to widespread disruptions across the world’s supply chains, leading to inflation and higher prices for many commodities. In response to these increasing costs, some companies have elected to reduce the size of their packaging rather than raise prices. For instance, Walmart shrank its Great Value paper towel rolls from 168 sheets to 120 sheets while the Tillamook County Creamery Association reduced its family sized ice cream containers from 56 ounces to 48 ounces.

“Consumers check the Continue reading →

Supply chains, Economics, Packaging, Marketing, Product Distribution, Ethics, Supply & Demand, Coronavirus, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 13: Marketing, Chapter 14: Product and Price, Chapter 15: Distribution

[VIDEO] The Economics of IKEA: Why Does Labor Lead to Love?

May 28, 2021

NickelsMcHughMcHugh

The Swedish company IKEA is famous across the globe for its meatballs and its wide array of furniture that customers must assemble at home. This video looks at how the retailer encourages sales by creating the “IKEA effect” with its winding floor plan that causes customers to snake through a series of product showrooms.

Questions:

What sort of strategies does IKEA use to keep costs low?
How does the “IKEA effect” encourage customers to purchase furniture and home goods?

Global, IKEA, Retail, Packaging, Economics, Operations Management, Product Distribution

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Videos

Gasoline Pipeline Hack Causes Fuel Shortage on East Coast

May 12, 2021

NickelsMcHughMcHugh

Last week, hackers began a ransomware attack on the Colonial Pipeline, a major conduit that supplies nearly half of the East Coast’s oil. The hack completely shut down petroleum transportation as the Colonial Pipeline Company “proactively took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems.” Although the company expects to have most of its capabilities returned by the end of the week, the shutdown has resulted in Continue reading →

Energy, Oil, Economics, Logistics, Operations Management, Supply & Demand, Ethics, Transporatation

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 15: Distribution

New Unemployment Claims Gradually Begin to Drop

May 6, 2021

NickelsMcHughMcHugh

The widespread disruptions caused by the pandemic resulted in millions of Americans losing their jobs last year and subsequently applying for unemployment benefits. In one especially bleak week in spring 2020, new unemployment claims topped out at more than six million as businesses locked down to prevent the spread of coronavirus. Although the amount of new claims steadily began to decline after this historic high, hundreds of thousands of Americans have nevertheless applied for unemployment week after week since the Continue reading →

Regulation, Economics, Hiring, Ethics, Coronavirus, Human Resources, Stimulus, Unemployment, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 11: Human Resource Management, Chapter 12: Labor Management and Unions, Bonus Chapter A: Business Law