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This Makes My Brain Tired 0_0

21 Nov

Studying Business Operations is a bit like those old logic puzzles: If Sarah and Jim are working on Project A and Tom and Valerie are doing Project B, when can Sarah and Rob start on Project C sitting together next to the bride and groom, but not next to Maggie who is not married to Sam?

#Economics 101 ~ Absolute Advantage, Comparative Advantage, and the PPF

1 Oct

*As always, this is not intended to be professional advice. This was written with ESL students in mind, designed for a basic #Economics class. We simply hope that it may be helpful to other students trying to understand the concept.

UNDERSTANDING THE PPF

PPF.jpg

The two lines you see up above are called Product Possibility Frontiers or the PPF.

Situation: Vietnam (越南) and Thailand (泰国) both are given $500 to make Swords (剑) or Bows & Arrows (弓箭). Because their money is limited (有限) (there is an end to the money), both countries need to decide how many they should make. Problem: if they spend money on swords, that means less money for bows and arrows. And if they spend money on bows and arrows, that means less money available for swords. It’s a CHOICE (or in economics — a TRADE-OFF).

They have three choices: 1) Make only Swords. 2) Make only Bows and Arrows. 3) Make some of both.

The green line (Vietnam) shows all the possible combinations (组合) that Vietnam can make if it uses ALL the money ($500). Continue reading

What is the #Supply (供给) Curve?

8 Jun

What is the #Supply Curve in #Economics?
Supply is the number of products currently available for sale.

In #Microeconomics, we often look at the supply of one company (how many that company has ready for trade).

In #Macroeconomics, we sometimes talk about Aggregate Supply (how many are up for sale in the entire market).

Below is a simple explanation of the Supply Graph and what you need to know!

Let’s say that Mike is buying pencils from Metro (Màidélóng)

We want to know what price should Mike offer?

Suipply Curve.jpg

This picture is very helpful! The light Green Line (supply ) tells us how many pencils Metro will have available for sale at each price.

Situation #1: The price is $3.00, Metro will have 30 pencils available for sale.

Situation #2: The price is $1.00, Metro will have 10 pencils available for sale.

Situation #3: The price is $4.00 and Mike wants 25 pencils. Can Mike buy those 25 from Metro?

Answer: Yes! Mike wants 25 pencils and Metro has 40 pencils. So Mike can buy 25 pencils at Metro for $4.

Situation #4: The price is $4.00 and Mike wants 50 pencils. Can Mike buy 50 pencils from Metro?

Answer: No! Mike wants 50 pencils, but Metro only has 40. So Mike can get 25 pencils or even 40 pencils. But he cannot buy 50 pencils for $4.00 because the store will not have enough.

So we could draw the picture like this:

Supply 2

So what is the Supply Curve?

  • It tells us the MAXIMUM (最大) number of products Metro will have available for sale at each price.
  • It tells us how many products Mike CANNOT buy.
  • It gives us an idea of what price we should choose. For example, if the price is $8.00, Mike can buy 80 pencils! But if the price is $1, he can only buy 5 pencils.

Law of Supply (供给法则) ~ When price increases (), more products will be available for sale.

Economy Outline for #Macroeconomics

21 May

economic-outline.jpg

This picture is designed for my Macroeconomics students (and any others who may find it useful). 

In Economics, we are given a very helpful “Photo” or picture of the economy called the Circular Flow Diagram. (remember, “circular flow” means ‘to go in a circle’). 

circular-flow-diagram.jpg

We know from this picture that every economy is made up of two kinds of stores — 1) those that sell products they have created to consumers (Product Market) and 2) those that sell the factors of production like land, labor, and capital (Factors of Production Market).

Economic Trade = Goods Market + Factors of Production Market

Each market is then made up of Supply and Demand.  Supply is how many products the store has available for sale. Demand is how many products the buyer will purchase if given the opportunity. 

Let’s say the Quantity Supplied is 20. . . . why 20? Why not 0? What can we do to make the store offer more? What can we do to have lower supply?

Supply is made up of six main factors:

  • Price of the product
  • Price of Inputs (cost of making the product)
  • Price of Related Goods in Supply (for example, the price / revenue of an alternative product)
  • Level of Technology
  • Expected Future Price
  • Number of Companies in the market.

Demand is also made up of six main factors:

  • Price of the product
  • Income of the buyers
  • Price of Related Goods in Demand (for example, the price/cost of buying an alternative product)
  • Level of Taste (do you like it)
  • Expected Future Price
  • Number of Buyers in the market.

 

Everything we study in Microeconomics and Macroeconomics fits into this picture of the economy.   All of our resources go into one of the two markets. All of our topics fit into Supply and/or Demand.  All issues are somewhere in the factors of supply or demand.

Unemployment for example is often a problem in demand (no companies want to hire).  Where in demand? — Maybe Taste (they don’t like the new graduates, think they are lazy) or Price (the workers are demanding higher salaries). 

GDP is an issue involving lots of factors — Number of Buyers (population), Income, Prices, etc.

Price Controls & Equilibrium – Prices, Price of Inputs, Price of Related Goods, Future Prices

Interest Rates – Prices and Income

Inflation – Prices and Income

As long as you understand the factors of the economy, you should start to see why we look at the things we do for economics classes!

 

 

What is the #DemandCurve in #Economics?

18 May

What is the #Demand Curve in #Economics?
Demand is the number of products the buyers are willing to purchase.

In #Microeconomics, we often look at the demand of one company or buyer.

In #Macroeconomics, we sometimes talk about Aggregate Demand (how many are will all buyers in the market purchase at each price). 

Below is a simple explanation of the Supply Graph and what you need to know!

Let’s say that Mike is buying pencils from Metro (Màidélóng)

We want to know what price should Metro charge?

Demand Curve.jpg

This picture is very helpful! The light Green Line  (Demand – 需求) tells us how many pencils Mike will buy at each price.

Situation #1: The price is $3.00, Mike is willing to buy 50 pencils.

Situation #2: The price is $1.00, Mike is willing to buy 70 pencils.

Situation #3: The price is $4.00 and Metro has 30 pencils. Will Mike buy them?

Answer: Yes! Mike wants 40 pencils, of course he would buy 30 if they are available.

Situation #4: The price is $4.00 and Metro has 50 pencils. Will Mike buy them?

Answer: No! Mike only wants 40 pencils, so he is never going to buy 50.

So we could draw the picture like this:

Demand Possibility.jpg

So what is the Demand (需求) Curve?

  • It tells us the MAXIMUM (最大) number of products Mike will buy at each price.
  • It tells us how many products Mike will NOT buy.
  • It gives us an idea of what price we should choose. For example, if the price is $8.00, Mike won’t buy any pencils!

Law of Demand (需求法则) ~ When price increases (), buyers will be willing to buyer less products than before (when price goes up, we buy less).

Price of Related Goods (PR) in #Economics

3 May

An #Infograph for my Chinese students in #microeconomics and #macroeconomics 

When we study Supply and Demand in #economics, we learned that one of the factors that changes them both is Price of Related Goods.  

  • Supply — The number of products the company has available to sell at all prices
  • Demand — The number of products the buyers will purchase at all prices
  • Quantity Supplied — The number of products supplied at a specific price
  • Quantity Demanded — The number of products demanded at a specific price
  • Inverse Relationship — When Y ↑   then X ↓ — Line goes down
  • Direct Relationship — When Y ↑  then X   ↑ — Line goes up

#business #studyguide #econ 

new-piktochart_30078936

Job Interviews are a #Negotiation, not a Grocery Purchase

20 Apr

So many of my amazing #students are up and off to internships and their first jobs. Proud and thrilled for them!

But it recently reminded me of one of my early interviews for a position while in law school. I had applied for a job with #LexisNexis at my University to work as a recruitment / trainer kind of person (for those of you who don’t know – they operate one of the big legal research websites and hire students to train other law students in how to use the system). 

During the first meeting, the interviewer asked me what I was looking for in a workplace. I answered very honestly. Nothing outrageous — I needed something flexible to work around my school schedule and a job that did not involve a lot of weekly meetings and reports. At the time, I was swamped with school and couldn’t afford a job that was extremely time-consuming. I’ve had those jobs (#teaching happens to be one) where they say you’ll work 5 hours but the reality is more like 12. I had also recently come out of a job where the manager would give us orders, but never explain how to accomplish the assignment (it wasn’t something you could just pick up). If you did it wrong, they were furious because it wasn’t how they wanted it. All of the student workers quit in about a month. So I also mentioned that I was willing to go the extra mile for a company, but I really appreciated managers who were clear about their expectations and specific if they wanted things done a certain way.

In the second meeting the interviewer took me aside to explain that I should never tell a company what I’m looking for. That they may not fit that description and then won’t hire me. You should only talk about how you benefit them. 

It was the worst advice I’ve ever received.

Jobs are not a one-way-street! It’s a negotiation. Recruiters are not walking into a shopping mart looking over the selections, picking the best employee for them, and then making a wonderful masterpiece out of the pieces. They may be considering you, but you are also considering them.  If the company does not suit you, if the management sends your stress through the roof, if the job is inconsistent and changing while you work better under consistent and clear guidelines — those are important factors in job success. The masterpiece relies on both parties doing their best.

It’s called the ‘job market‘ for a reason — there are both buyers and sellers. While the buyer’s interests and needs are very important, the seller also has a role to play. There may be some buyers you just aren’t willing to work with because they don’t have what you want.

It is true that if you are extremely picky, you may put off potential hiring opportunities.

However, if you have a list of reasonable requests — issues that may determine whether you like a job and are satisfied with a position — it’s okay to discuss them.

In my last workplace, they got a little crazy with “evaluations” of professors. While I strongly support the concept of evaluations, we had student evals, management evals, and peer evals. I had random people in my classroom at least once a week and then I was (without pay) expected to visit anywhere from 3-5 people myself to evaluate them during busy mid-term sessions. It didn’t work. Everyone was stressed, the students didn’t respond well to the constant flow of new and unfamiliar faces. We would have as many as 5-6 meetings just to explain, catch-up, update, explain, and re-update information about evaluations. There was a lot of unnecessary frustration. So in my next job search, I asked recruiters how evaluations were completed and explained that I wanted a program where the system was solid but well-planned. Finally came a recruiter who said “Totally! That drives me crazy too. Our system includes X, Y, and Z — it’s all done at specific times and with forward planning. We get it done as quickly as possible so that it doesn’t disrupt the classroom.” Great! This is what I was looking for! They explained what they were looking for (I fit). I explained what I was looking for (they fit). I took the job, and we’ve both been very satisfied (I received some of the highest student evaluations of 2017).

If a company cannot fit your needs and requirements, it isn’t going to be a happy relationship. If you and the company are both satisfied and all needs are met — it’s market equilibrium (the best trade for everyone).

So don’t let recruiters try to shop you over. Negotiate. Talk. Remember — Job interviews are cooperative and involve two sides.

#Diversity – It’s More Than Just a Hiring Issue!

16 Apr

Being ‘diverse’ is more than just hiring the right people and ‘seeing everyone the same.’ It means recognizing differences, acknowledging them, and responding appropriately when necessary.   Having a strong Business Culture involves understanding the background that people are coming from and adapting to it as needed so that people feel motivated and comfortable.  For example, if you are going to do business in China, you should do some research into their traditions.  Even if it’s not ‘unfair treatment’ — assigning someone from China to chair #4 may actually cause a problem for them culturally (4 can represent death or bad luck in Asian cultures).  Many of my Chinese students feel very uncomfortable being asked to be in ‘Group 4’ or to sit in ‘Chair 4’ during a project.   It’s important that I (as an international employee) be aware of that and do my best to find work-arounds.  It isn’t difficult, but it does take some thought and forward planning. 

#StudyAid for Understanding #Graphs in #Business and #Economics

20 Mar

Quick tip for my students of #Economics#Business, and #Finance — I know some of you have a hard time with the graphs. So many lines gets a little confusing.  If you are a little more “artist” than you are “mathematician” by nature, this is a tip I’ve shared with many students to help them keep track of information.  Buy a DRAWING book, not a notebook with lines on the paper. A blank book. Also buy a set of markers or colored pens.  Pick a color for each “key” thing — For example, Profit can be blue and Revenue can be red.  Draw the graphs in your notebook with those colors. Use the same colors to take notes. Whenever you are writing about “Revenue,” use the red pen. Whenever you are writing about “Profit” use the blue pen.  People who are visual can often see things better when there are different colors. It is easier to avoid getting confused and to keep things clear in your mind.  The students who try this method say it helps them a lot more. It’s worth a try! 

Break Even

 

#Business and #Finance ~ FIFO, LIFO, and AVCO

13 Mar

As always, this lesson is not intended to be professional advice. This is simply lesson material for ESL students in an introductory Economics and Finance class. Posted here for their use or for helping other students. 

Although they might sound more like little dog names (“Here, Fifo!) the terms FIFO, LIFO, and AVCO are actually extremely important terms in Accounting, Supply Chain Management, and Business!

Image result for Fifo

The company wants to know, “What is our Profit this year?” “How much Money did we make?”

Hopefully, you already remember this ~

Profit = Revenue – Cost 

This sounds pretty easy!  But actually it isn’t -_- . . . . in fact each company may count their profits in a different way!

Let’s look at how this happens Continue reading

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