International Business Global Economics

Welcome to

Summer 2015

schmidt-bremen.de -> Internat.Bus@UNCW

Prof. Dr. Peter Schmidt

WHY

study

International Business / Economics ?

What‘s it about ?

UNCW - HSB

EnvironmentEnvironment

BusinessBusiness

EconomicsEconomicsMicro- / MacroMicro- / Macro

internationalinternational

inte

rcul

tura

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inte

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interestingaspects for businessaspects for business

Introductions . . .

Economics

Lecturer

Students

Whish list / “learning targets”

Ask questions / find them! Discuss these from different viewpoints Learn about possible answers Learn that there normally is not the one

answer in social sciences … Especially not in intercultural

environments Develop (more) interest in following the

current political debates – which?

Your Whish list

…

Economics & Statistics

ZEWZentrum für EuropäischeWirtschaftsforschung -

Mannheim

Peter SchmidtWho am I

market . research . culture

schmidt-bremen.de -> Internat.Bus@UNCW

You …

are highly motivated students

are invited to participate in the teamwork-tasks

are encouraged to suggest own topics / questions about current economic policy

now please start your first teamwork task …

One transparency about your principles

A second one providing your OWN example for the principles

(10) Principles of

Economics

Every field of study has its own terminology

Mathematics

axiomsintegrals

vector spacesPsychology

egoid

cognitive dissonanceLaw

torts

venues

Promissory estoppel

Every field of study has its own terminology

Economics

Supply

Demand

Elasticity

Consumer Surplus

Comparative advantage

Opportunity cost

Deadweight loss

Economics trains you to. . . .

Think in terms of alternatives. Evaluate the cost of individual and

social choices. Examine and understand how

certain events and issues are related.

The Economist as a Scientist

The economic way of thinking . . . Involves thinking analytically and

objectively. Makes use of the scientific method.

The Scientific Method

Uses abstract models to help explain how a complex, real world operates.

Develops theories, collects, and analyzes data to prove (or dismiss) the theories.

Observation, Theory and More Observation!

Ten Principles of Economics

Chapter 1

Copyright © 2001 by Harcourt, Inc.

All rights reserved.   Requests for permission to make copies of any part of the

work should be mailed to:

Permissions Department, Harcourt College Publishers,6277 Sea Harbor Drive, Orlando, Florida 32887-6777.

A household and an economy face many decisions:

Who will work? What goods and how many of them

should be produced? What resources should be used in

production? At what price should the goods be

sold?

Society and Scarce Resources:

The management of society’s resources is important because resources are scarce.

Scarcity . . .

. . . means that society has limited

resources and therefore cannot

produce all the goods and services

people wish to have.

Economics

Economics is the study of

how society manages its

scarce resources.

Economists study. . .

How people make decisions.

How people interact with each other.

The forces and trends that affect the economy as a whole.

Ten Principles of Economics

1. People face tradeoffs.

2. The cost of something is what you give up to get it.

3. Rational people think at the margin.

4. People respond to incentives.

I How People Make Decisions

5. Trade can make everyone better off.

6. Markets are usually a good way to organize economic activity.

7. Governments can sometimes improve market outcomes.

8. The standard of living depends on a country’s production.

9. Prices rise when the government prints too much money.

10. Society faces a short-run tradeoff between inflation and unemployment.

II How People Interact

III How the Economy as a Whole Works

Ten Principles of Economics

1. People face tradeoffs.

2. The cost of something is what you give up to get it.

3. Rational people think at the margin.

4. People respond to incentives.

I How People Make Decisions

5. Trade can make everyone better off.

6. Markets are usually a good way to organize economic activity.

7. Governments can sometimes improve market outcomes.

II How People Interact

Ten Principles of Economics

Ten Principles of Economics

8. The standard of living depends on a country’s production.

9. Prices rise when the government prints too much money.

10.Society faces a short-run tradeoff between inflation and unemployment.

III How the Economy as a Whole Works

And always remember …People face tradeoffs !

“There is no such thing as a free lunch!”