• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Ib chapter2
 

Ib chapter2

on

  • 1,236 views

 

Statistics

Views

Total Views
1,236
Views on SlideShare
1,236
Embed Views
0

Actions

Likes
0
Downloads
23
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Ib chapter2 Ib chapter2 Presentation Transcript

    • 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]
    •  
    • A dual economy happens in must countries, it represents extreme levels of economic development. International Business Chapter 2
      • Describe the basic economic problem.
      • List the steps of the decision-making process.
      International Business Chapter 2-1 Economics & Decision Making Goals
      • Scarcity refers to the limited resources available to satisfy the unlimited needs and wants of people.
      • Economics is the study of how people choose to use limited resources to satisfy their unlimited needs and wants.
      The Basic Economic Problem Economics & Scarcity Concepts International Business Chapter 2-1
      • Coping with scarcity
      • Making choices
      Making Economic Decisions International Business Chapter 2-1
    • Every time we decide how to use the time, money or energy we’re making an economic decision Time Energy $$ International Business Chapter 2-1 Economics & Decision Making Explained
    • What do I need or want. How can I have that. What are the advantages or disadvantages in each case. Based on #3 what is the best option. Do what have to be done Did it solve the problem? International Business Chapter 2-1 The Decision-Making Process
      • Describe how the market sets prices.
      • Explain the causes of inflation.
      http://www.slideshare.net/lntrullin/supply-and-demand-1184484 International Business Chapter 2-2 Basics of Economics Price Inflation Key Words
      • Supply is the relationship between the amount of a good or service that businesses are willing and able to make available and the price.
      • Demand is the relationship between the amount of a good or service that consumers are willing and able to purchase and the price.
      • Market price is the point at which supply and demand cross.
      International Business Chapter 2-2 Price-Setting Activities CONCEPTS
    • Market Price Is Set by Supply and Demand Amount of Stuffed Animals Price per animal
    • Market Price Is Set by Supply and Demand $ $$$$ 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 $100 $80 $60 $40 $20 $10 $0 0 20 40 80 160 320
    • 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
    • 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
      • Inflation
      • Demand-pull inflation
      • Cost-push inflation
      International Business Chapter 2-2 Changing Prices
      • Inflation
      • Demand-pull inflation
      • Cost-push inflation
      International Business Chapter 2-2 Changing Prices
      • Name the three main factors of production.
      • Understand how different countries make economic decisions.
      International Business Chapter 2-3 Economic Systems Economic Systems Goals
    • International Business Chapter 2-3 Economic Resources Satisfy Needs Capital Resources Human Resources Natural Resources Production Factors
      • 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.
      • These items are used in the production of goods and services consumed by individuals, businesses, and governments.
      International Business Chapter 2-3 Economic Resources Satisfy Needs Natural Resources Concept
      • Also known as labor , these resources are the people who work to create goods and services.
      • While technology has changed or eliminated certain tasks previously performed by people, new types of work are continually being created.
      Human Resources Concept International Business Chapter 2-3 Economic Resources Satisfy Needs
      • Also called capital , these resources include buildings, money, equipment, and factories used in the production process.
      • These items are expensive and are used over several years by business organizations.
      Capital Resources Concept International Business Chapter 2-3 Economic Resources Satisfy Needs
      • The economic choices of a country relate to three basic questions:
      • 1. What goods and services are to be produced?
      • 2. How should the goods and services be produced?
      • 3. For whom should the goods and services be produced?
      International Business Chapter 2-3 Economic Resources Satisfy Needs Economic Systems Types of
      • Command Economies
      • Market Economies
        • Private property
        • Profit motive
        • Free, competitive marketplace
      • Mixed Economies
      International Business Chapter 2-3 Economic Resources Satisfy Needs Economic Systems Types of
      • Describe the factors that affect economic development.
      • Identify the different levels of economic development.
      International Business Chapter 2-4 Achieving Economic Development Goals Technology Agricultural Dependency Literacy Development Factors
      • Low literacy
      • Limited technology
      • Agricultural or mining economy
      • Improving literacy
      • Improving technology
      • Decreasing dependence on agriculture or mining
      • High literacy
      • Modern technology
      • Industrial economy
      Less- Developed Country Developing Country Industrialized Country International Business Chapter 2-4 Levels of Economic Development
      • Discuss economic principles that explain the need for international trade.
      • Identify various measures of economic progress and development.
      Resources Satisfy Needs Goals International Business Chapter 2-5 The Economics of Foreign Trade
    • 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
      • Measure of Production
        • Gross domestic product (GDP)
        • Gross national product (GNP)
      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
      • International Trade Activity
        • Balance of trade
        • Foreign exchange rate
        • Foreign debt
      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
      • Other Economic Measurements
        • Consumer price index (CPI)
        • Unemployment rate
      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…
    • Homework Read the Newspaper!!!!!!! Find an article that involves International Business Get ready to talk about it next class…
    • Quiz One page. Write your name. Elaborate: How International Business affects you