2-1 Economics and Decision Making 2-2 Basics of Economics 2-3 Economic Systems 2-4 Achieving Economic Development 2-5 Reso...
 
A dual economy happens in must countries, it represents extreme levels of economic development. International Business Cha...
<ul><li>Describe the basic economic problem. </li></ul><ul><li>List the steps of the decision-making process.   </li></ul>...
<ul><li>Scarcity  refers to the limited resources available to satisfy the unlimited needs and wants of people. </li></ul>...
<ul><li>Coping with scarcity </li></ul><ul><li>Making choices </li></ul>Making Economic Decisions International Business C...
Every time we decide how to use the time, money or energy we’re making an economic decision Time Energy $$ International B...
What do I need or want.   How can I have that.  What are the advantages or disadvantages in each case. Based on #3 what is...
<ul><li>Describe how the market sets prices. </li></ul><ul><li>Explain the causes of inflation. </li></ul>http://www.slide...
<ul><li>Supply  is the relationship between the amount of a good or service that businesses are willing and able to make a...
Market Price Is Set by  Supply and Demand Amount of Stuffed Animals Price per animal
Market Price Is Set by Supply and Demand $ $$$$ International Business Chapter 2-2 Price-Setting Activities
Market Price Is Set by  Supply and Demand Amount of Stuffed Animals Price per animal
Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $10...
Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $10...
Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $10...
<ul><li>Inflation </li></ul><ul><li>Demand-pull inflation </li></ul><ul><li>Cost-push inflation </li></ul>International Bu...
<ul><li>Inflation </li></ul><ul><li>Demand-pull inflation </li></ul><ul><li>Cost-push inflation </li></ul>International Bu...
<ul><li>Name the three main factors of production. </li></ul><ul><li>Understand how different countries make economic deci...
International Business Chapter 2-3 Economic Resources Satisfy Needs Capital Resources Human Resources Natural Resources Pr...
<ul><li>Also known as  land , these resources are the raw materials that come from the earth, from the water, and from the...
<ul><li>Also known as  labor , these resources are the people who work to create goods and services.  </li></ul><ul><li>Wh...
<ul><li>Also called  capital , these resources include buildings, money, equipment, and factories used in the production p...
<ul><li>The economic choices of a country relate to three basic questions: </li></ul><ul><li>1. What goods and services ar...
<ul><li>Command Economies </li></ul><ul><li>Market Economies </li></ul><ul><ul><li>Private property </li></ul></ul><ul><ul...
<ul><li>Describe the factors that affect economic development. </li></ul><ul><li>Identify the different levels of economic...
<ul><li>Low literacy </li></ul><ul><li>Limited technology </li></ul><ul><li>Agricultural or mining economy </li></ul><ul><...
<ul><li>Discuss economic principles that explain the need for international trade. </li></ul><ul><li>Identify various meas...
a country can produce  a good or service at a  lower cost than other countries exists when a country can produce a good or...
<ul><li>Measure of Production </li></ul><ul><ul><li>Gross domestic product (GDP) </li></ul></ul><ul><ul><li>Gross national...
<ul><li>International Trade Activity </li></ul><ul><ul><li>Balance of trade </li></ul></ul><ul><ul><li>Foreign exchange ra...
<ul><li>Other Economic Measurements </li></ul><ul><ul><li>Consumer price index (CPI) </li></ul></ul><ul><ul><li>Unemployme...
Homework Read the Newspaper!!!!!!! Find an article that involves International Business Get ready to talk about it next cl...
Quiz One page. Write your name. Elaborate: How  International Business  affects you
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Ib chapter2

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Ib chapter2

  1. 1. 2-1 Economics and Decision Making 2-2 Basics of Economics 2-3 Economic Systems 2-4 Achieving Economic Development 2-5 Resources Satisfy Needs ENGLAND GERMANY FRANCE DENMARK SWEDEN PORTUGAL International Business Chapter 2 Our Global Economy [P.26-55]
  2. 3. A dual economy happens in must countries, it represents extreme levels of economic development. International Business Chapter 2
  3. 4. <ul><li>Describe the basic economic problem. </li></ul><ul><li>List the steps of the decision-making process. </li></ul>International Business Chapter 2-1 Economics & Decision Making Goals
  4. 5. <ul><li>Scarcity refers to the limited resources available to satisfy the unlimited needs and wants of people. </li></ul><ul><li>Economics is the study of how people choose to use limited resources to satisfy their unlimited needs and wants. </li></ul>The Basic Economic Problem Economics & Scarcity Concepts International Business Chapter 2-1
  5. 6. <ul><li>Coping with scarcity </li></ul><ul><li>Making choices </li></ul>Making Economic Decisions International Business Chapter 2-1
  6. 7. Every time we decide how to use the time, money or energy we’re making an economic decision Time Energy $$ International Business Chapter 2-1 Economics & Decision Making Explained
  7. 8. What do I need or want. How can I have that. What are the advantages or disadvantages in each case. Based on #3 what is the best option. Do what have to be done Did it solve the problem? International Business Chapter 2-1 The Decision-Making Process
  8. 9. <ul><li>Describe how the market sets prices. </li></ul><ul><li>Explain the causes of inflation. </li></ul>http://www.slideshare.net/lntrullin/supply-and-demand-1184484 International Business Chapter 2-2 Basics of Economics Price Inflation Key Words
  9. 10. <ul><li>Supply is the relationship between the amount of a good or service that businesses are willing and able to make available and the price. </li></ul><ul><li>Demand is the relationship between the amount of a good or service that consumers are willing and able to purchase and the price. </li></ul><ul><li>Market price is the point at which supply and demand cross. </li></ul>International Business Chapter 2-2 Price-Setting Activities CONCEPTS
  10. 11. Market Price Is Set by Supply and Demand Amount of Stuffed Animals Price per animal
  11. 12. Market Price Is Set by Supply and Demand $ $$$$ International Business Chapter 2-2 Price-Setting Activities
  12. 13. Market Price Is Set by Supply and Demand Amount of Stuffed Animals Price per animal
  13. 14. Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $100 $80 $60 $40 $20 $10 $0 0 20 40 80 160 320
  14. 15. Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $100 $80 $60 $40 $20 $10 $0 0 20 40 80 160 320
  15. 16. Market Price Is Set by Supply and Demand Product Price International Business Chapter 2-2 Price-Setting Activities D S $100 $80 $60 $40 $20 $10 $0 0 20 40 80 160 320
  16. 17. <ul><li>Inflation </li></ul><ul><li>Demand-pull inflation </li></ul><ul><li>Cost-push inflation </li></ul>International Business Chapter 2-2 Changing Prices
  17. 18. <ul><li>Inflation </li></ul><ul><li>Demand-pull inflation </li></ul><ul><li>Cost-push inflation </li></ul>International Business Chapter 2-2 Changing Prices
  18. 19. <ul><li>Name the three main factors of production. </li></ul><ul><li>Understand how different countries make economic decisions. </li></ul>International Business Chapter 2-3 Economic Systems Economic Systems Goals
  19. 20. International Business Chapter 2-3 Economic Resources Satisfy Needs Capital Resources Human Resources Natural Resources Production Factors
  20. 21. <ul><li>Also known as land , these resources are the raw materials that come from the earth, from the water, and from the air. Iron, gold, silver, agricultural products, rivers, and oxygen are examples of natural resources. </li></ul><ul><li>These items are used in the production of goods and services consumed by individuals, businesses, and governments. </li></ul>International Business Chapter 2-3 Economic Resources Satisfy Needs Natural Resources Concept
  21. 22. <ul><li>Also known as labor , these resources are the people who work to create goods and services. </li></ul><ul><li>While technology has changed or eliminated certain tasks previously performed by people, new types of work are continually being created. </li></ul>Human Resources Concept International Business Chapter 2-3 Economic Resources Satisfy Needs
  22. 23. <ul><li>Also called capital , these resources include buildings, money, equipment, and factories used in the production process. </li></ul><ul><li>These items are expensive and are used over several years by business organizations. </li></ul>Capital Resources Concept International Business Chapter 2-3 Economic Resources Satisfy Needs
  23. 24. <ul><li>The economic choices of a country relate to three basic questions: </li></ul><ul><li>1. What goods and services are to be produced? </li></ul><ul><li>2. How should the goods and services be produced? </li></ul><ul><li>3. For whom should the goods and services be produced? </li></ul>International Business Chapter 2-3 Economic Resources Satisfy Needs Economic Systems Types of
  24. 25. <ul><li>Command Economies </li></ul><ul><li>Market Economies </li></ul><ul><ul><li>Private property </li></ul></ul><ul><ul><li>Profit motive </li></ul></ul><ul><ul><li>Free, competitive marketplace </li></ul></ul><ul><li>Mixed Economies </li></ul>International Business Chapter 2-3 Economic Resources Satisfy Needs Economic Systems Types of
  25. 26. <ul><li>Describe the factors that affect economic development. </li></ul><ul><li>Identify the different levels of economic development. </li></ul>International Business Chapter 2-4 Achieving Economic Development Goals Technology Agricultural Dependency Literacy Development Factors
  26. 27. <ul><li>Low literacy </li></ul><ul><li>Limited technology </li></ul><ul><li>Agricultural or mining economy </li></ul><ul><li>Improving literacy </li></ul><ul><li>Improving technology </li></ul><ul><li>Decreasing dependence on agriculture or mining </li></ul><ul><li>High literacy </li></ul><ul><li>Modern technology </li></ul><ul><li>Industrial economy </li></ul>Less- Developed Country Developing Country Industrialized Country International Business Chapter 2-4 Levels of Economic Development
  27. 28. <ul><li>Discuss economic principles that explain the need for international trade. </li></ul><ul><li>Identify various measures of economic progress and development. </li></ul>Resources Satisfy Needs Goals International Business Chapter 2-5 The Economics of Foreign Trade
  28. 29. a country can produce a good or service at a lower cost than other countries exists when a country can produce a good or service with more efficiency than other countries. International Business Chapter 2-5 The Economics of Foreign Trade Absolut Advantage Comparative Advantage
  29. 30. <ul><li>Measure of Production </li></ul><ul><ul><li>Gross domestic product (GDP) </li></ul></ul><ul><ul><li>Gross national product (GNP) </li></ul></ul>International Business Chapter 2-5 Measuring Economic Progress Measure of Production Key words Measures the output of goods produce in the country Measures the total value of all goods and services produced by the resources of a country
  30. 31. <ul><li>International Trade Activity </li></ul><ul><ul><li>Balance of trade </li></ul></ul><ul><ul><li>Foreign exchange rate </li></ul></ul><ul><ul><li>Foreign debt </li></ul></ul>International Business Chapter 2-5 Measuring Economic Progress International Trade Activity Key words The differences between exports and imports The value of the money in relation to other currencies The amount of money the country owes to other countries
  31. 32. <ul><li>Other Economic Measurements </li></ul><ul><ul><li>Consumer price index (CPI) </li></ul></ul><ul><ul><li>Unemployment rate </li></ul></ul>International Business Chapter 2-5 Measuring Economic Progress International Trade Activity Key words Help consumers to make buying decisions. This measures inflation. Indicator of a country situation. No work, no money, no buying…
  32. 33. Homework Read the Newspaper!!!!!!! Find an article that involves International Business Get ready to talk about it next class…
  33. 34. Quiz One page. Write your name. Elaborate: How International Business affects you

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