6.03(A)Understand economic indicators to recognize economic

Section 5

Planning Guide Sheets

Page 5-1

Week#

Days to

teach:

6.00

B CHANNEL MANAGEMENT, SELLING, PROMOTION, MARKETING-

INFORMATION MANAGEMENT, COMMUNICATION, AND ECONOMICS

48%

6.00 Understand economics.

6.01 Analyze cost/profit relationships to guide business decision-making.

(EC:014), (EC:015) (SUPPLEMENTAL)

6.02 Analyze cost/profit relationships to guide business decision-making.

(EC:023)

6.03 Understand economic indicators to recognize economic trends and conditions. (EC:083), (EC:017), (EC:082), (EC:084), (EC:018)

6.04 Determine global trade’s impact on business decision-making. (EC:016),

(EC:100), (EC:045) (SUPPLEMENTAL)

11%

0%

3%

8%

0%

Section 5

Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

LAP

Textbooks


Page 5-2

6.01(A) Analyze cost/profit relationships to guide business decision-making. (EC:014),

(EC:015) (SUPPLEMENTAL)

Understands the economic principles and concepts fundamental to business operations

Analyze cost/profit relationships to guide business decision-making.

Analyze the impact of specialization/division of labor on productivity (EC:014,

EC LAP 7) (SUPPLEMENTAL)

Specialist

Information 7; Systems 15; Basic Skills 1-2, 5-6; Thinking Skills 12

Financial, Economic, Business and Entrepreneurial Literacy 2, 3; Critical

Thinking and Problem Solving Skills 1, 3, 4; Communication a. Define the following terms: specialization of labor, division of labor, depth of jobs and scope of jobs. b. Describe how resources are involved in specialization. c. Identify forms of specialization of human resources. d. Describe specialization by trade or profession. e. Describe specialization by stage of production. f. Describe specialization by task. g. Explain the relationship between the depth and scope of a job. h. Describe the advantages of specialization. i. Explain the disadvantages of specialization. j. Describe ways to overcome the disadvantages of specialization.

Explain that students are to analyze a job to determine the resources that are involved in specialization, the form of human resource specialization, the scope and depth of the job, the advantages/disadvantages in specializing the work, and steps that could be taken to overcome disadvantages of specialization. Tell them to write a report of their findings and to submit it to you.

MBA Research and Curriculum Center (2011). Divide and conquer

( Specialization of labor) [LAP: EC-007]. Columbus, OH: Author.


( Specialization of labor) Instructor copy [LAP: EC-007]. Columbus, OH:

Author.

Bovée, C. L. & Thill, J. V. (2008). Business communication today (9 th ed.)

[pp. 323-324]. Upper Saddle River, NJ: Pearson Prentice Hall.

Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 11-12, 297]. Mason, OH:

Thomson/South-Western.

Section 5

Software/

Online


Page 5-3

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 12, 16, 467).

Columbus, OH: Glencoe/McGraw-Hill.

Dlabay, L.R., Burrow, J.L., & Kleindl, B. (2009). Intro to business (7 th ed.) [p.

36-37, 325-326]. Mason, OH: South-Western Cengage Learning.

Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (p.

53, 115). Woodland Hills, CA: Glencoe/McGraw-Hill.

McConnell, C.R. & Brue, S.L. (2005). Economics: Principles, problems, and policies (16 th ed.) [pp. 63, 96-99, 404-405, 691-696]. New York: McGraw-

Hill/Irwin.

Miller, R.L. (2005). Economics: Today and tomorrow (pp. 280, 475, 488).


O’Sullivan, A. & Sheffrin, S.M. (2003). Economics: Principles in action (pp.

28-29, 109, 328-329, 445-447). Upper Saddle River, NJ: Prentice Hall.

Sexton, R.L. (2003). Essentials of economics (pp. 34-35, 433-435). Mason,

OH: Thomson/South-Western.

AmosWEB. (2000-2011). Division of labor. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=division+of+labor

AmosWEB. (2000-2011). Specialization. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=specialization

Answers.com. (2011). Business dictionary:Job depth . Retrieved May 24,

2011, from http://www.answers.com/topic/job-depth

Johnson, P.M. (1994-2005). Division of labor. Retrieved May 24, 2011, from http://www.auburn.edu/~johnspm/gloss/division_of_labor eNotes.com (2011). Division of labor . Retrieved May 24, 2011from http://www.enotes.com/business-finance-encyclopedia/division-labor

Price, R.G. (2004). Division of labor, assembly line thought —the paradox of democratic capitalism. Retrieved May 24, 2011, from http://rationalrevolution.net/articles/division_of_labor.htm


( Specialization of labor) [LAP: EC-007 —Presentation Software].

Columbus, OH: Author.

Niederhoffer, V. (2006, September 11). Specialization and the division of labor. Retrieved May 24, 2011, from http://www.dailyspeculations.com/vic/Division.html

Section 5

Key Points

Briefing: Specialization/Division of Labor

Page 5-4

Define specialization.

The process of making the best use of resources in the production of goods and services

We specialize in the production of certain goods and services and exchange them for other goods and services.

If you decided to produce all the goods and services you needed, rather than producing some and trading for others, you would have less time to devote to the production of any one item, resulting in production of fewer items than if you’d specialized.

Explain how resources are involved in specialization.

Natural resources: We locate businesses where they can be the most successful (e.g., ski lodge in the mountains close to the slopes, orange groves in states with warm climates.

Capital goods: Specialized capital goods contribute to increased production

(e.g., use of robots on assembly lines).

Human resources: This occurs when people use their different skills and abilities in jobs for which they are best suited. People should do what they do best so that the most goods and services can be produced.

Discuss main forms of specialization of human resources.

Specialization by trade or profession: This is the type of work you perform to earn a living (e.g., teachers, farmers, doctors, plumbers, artists, etc.).

Specialization by stage of production: This form occurs when more than one state of production is needed to change a raw material into a finished product.

Specialization by task: This form occurs when jobs are so specialized by a worker does only one small part of the total job (e.g., in a textile mill, one worker cleans wool, another spins it into yarn, another dyes the yarn, and another weaves it into a woolen fabric). This type of specialization is also known as division of labor.

Explain the scope of jobs.

Defined as the number of different operations you do on the job and the frequency with which you do them

The lower your task level, the lower the scope of the job

Example:

Low scope: The job is to put doors on cars on an assembly line.

Higher scope: The job is to put doors on cars, put seats in cars, and check the steering mechanism.

Describe the depth of jobs.

Defined as the amount of control you have over the tasks that you do

Example:

Low depth: There are strict guidelines you must follow, and you make very few decisions.

High depth: You follow general guidelines and set your own pace.

Section 5

Briefing: Specialization/Division of Labor

Page 5-5

Discuss how the scope and depth of jobs can change with a specific task.

Example: How a manager’s scope and depth can change during one day.



The manager chooses advertising design and layout scheme for an upcoming promotion (high depth, high scope)



The manager makes out the weekly work schedule for employees (high depth, low scope)



The manager signs employee time cards (low depth, low scope)

 The manager evaluates employee performance according to the owner’s standards (low depth, high scope)



The scope and depth of certain jobs within a company can change more than that of another employee in the same company.

Identify advantages to specialization.



Simplified worker training



Increased employee interest and satisfaction



Increased production rates



Increased level of skill



Increased quality of work



Ease of transferring to a similar job

Identify disadvantages associated with specialization.



Increased interdependency



Increased boredom on the job



Decreased pride in work



Decreased morale and enthusiasm for the job



Increased chance of obsolescence because of technological advances



High degree of specialization may cause difficulty transferring or obtaining another job

Explain ways that businesses combat the disadvantages associated with specialization.



Job enlargement: Management may combine job tasks to restore wholeness

(e.g., instead of limiting salespeople strictly to selling merchandise, their jobs may be enlarged to help with displays, restocking merchandise, etc.).



Job rotation: Managers may also rotate employees periodically so that they learn new job tasks and see how their old tasks relate to the new tasks.

 Job enrichment: Managers add interest to a task to increase a job’s depth, allowing workers to make more decision, set their own pace, and supervise others.

● Job satisfaction: Managers may ask for and use employee suggestions; allow flexible or alternative work schedules; praise work well done; and provide cash incentives, contests, and bonuses.

Section 5

Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

LAP

Textbooks


Page 5-6

6.01 (B) Analyze cost/profit relationships to guide business decision-making. (EC:014),

(EC:015) (SUPPLEMENTAL)



Explain the concept of organized labor and business (EC:015, EC LAP 5)

(SUPPLEMENTAL)

Specialist

Information 7; Interpersonal 9,13; Systems 15; Basic Skills 1-2, 5-6; Thinking

Skills 8,12

Financial, Economic, Business and Entrepreneurial Literacy 2; Critical

Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: labor union, local, national, federation, collective bargaining, strikes, picketing, boycotts, featherbedding, lockouts, injunctions and strikebreakers. b. Identify reasons that labor unions form. c. Identify types of labor issues. d. Classify types of unions. e. Describe levels of union organization. f. Describe types of union organization. g. Describe the collective bargaining process. h. Explain types of union negotiation strategies. i. Describe types of management negotiation strategies. j. Explain the effects of unionism on workers. k. Describe the effects of unionism on businesses.

Have students search the Internet for information about unions —their benefits, requirements, pressure strategies, etc. Tell them to print a copy of their findings. Ask them to evaluate the information obtained to determine whether they would want to be a union member. Have them write a paper persuading others to support their point of view. Ask them to attach the printed Internet information to their papers, and submit them to you.

MBA Research and Curriculum Center (2011). Get united [LAP: EC-005].


MBA Research and Curriculum Center (2011). Get united: Instructor copy

[LAP: EC-005]. Columbus, OH: Author.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [pp. 369-373].

Upper Saddle River, NJ: Pearson Prentice Hall.

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 76-77, 194-198,

Section 5

Software/

Online


Page 5-7

200-203, 211-213). Columbus, OH: Glencoe/McGraw-Hill.

Dessler, G., & Varkkey, B. (2009). Human resource management (11 th ed.)

[pp. 603-620]. New Dehli, India: Dorling Kindersley.


191]. Mason, OH: South-Western Cengage Learning.

McConnell, C.R. & Brue, S.L. (2005). Economics: Principles, problems, and policies (16 th ed.) [pp. 528-532, 650-657]. New York: McGraw-Hill/Irwin.

Miller, R.L. (2005). Economics: Today and tomorrow (pp. 321-333).



225-234). Upper Saddle River, NJ: Prentice Hall.

Rue, L.W., & Byars, L.L. (2006). Business management: Real-world applications & connections (pp. 126-129). New York: Glencoe/McGraw-

Hill.

Sexton, R.L. (2003). Essentials of economics (pp. 223-225). Mason, OH:


Cornell University Law School. (n.d.). Collective bargaining and labor arbitration: An overview . Retrieved May 24, 2011, from http://topics.law.cornell.edu/wex/collective_bargaining

Encyclopedia of Small Business. (2011). Labor unions. Retrieved May 24,

2011, from http://www.referenceforbusiness.com/small/Inc-Mail/Labor-

Unions.html

MBA Research and Curriculum Center (2011). Get United [LAP: EC-005 —

Presentation Software]. Columbus, OH: Author.

Reynolds, M.O. (2008). Labor unions. Retrieved May 24, 2011, from http://www.econlib.org/Library/Enc/LaborUnions.html

Siasoco, R.V. (2007). Hard labor: How unions fought to honor the American worker. Retrieved May 24, 2011from http://www.factmonster.com/spot/labor1.html

Smith, S.E. (2003-2011). What is a picket? Retrieved May 24, 2011, from http://www.wisegeek.com/what-is-a-picket.htm

Section 5

Week# _____

Days to teach:_____

Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

Textbooks


Page 5-8

6.02 Analyze cost/profit relationships to guide business decision-making. (EC:023)



Explain the impact of the law of diminishing returns (EC:023)

Specialist

Information 5,7; Systems 15; Basic Skills 1-2, 4-6; Thinking Skills 9,12


Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: stages of production, theory of production, production function, increasing returns, diminishing returns, law of diminishing returns, law of variable proportions, marginal product negative returns, marginal cost, total revenue, and marginal revenue. b. Explain the stages of production. c. Describe the impact of the law of diminishing returns on production decisions. d. Explain how total revenue and marginal revenue are used to determine the amount of output that will generate the most profit.

Obtain scissors and tape for each group of three students, using half the class. Make 25 copies of the box handout provided on page 5-169 for each group. (Cut on solid lines; fold on dotted lines.) Explain how to construct a box using the pattern on the handout. Divide the class into groups of three students each. Ask each group to determine the number of boxes that can be made by its group in one minute. Continue the construction process, adding one worker at a time to each group and checking productivity at one-minute intervals. Ask the groups to determine the point at which the additional person does not increase productivity. Discuss how the principle of diminishing returns relates to productivity.

Or, have students complete the project entitled Have You Had Enough? provided on p. 6-9.

Abel, A. B., & Bernanke, B. S. (2005). Macroeconomics (5 th ed.) [pp. 63-77].

New York: Pearson Addison Wesley.


[pp. 90-93]. Upper Saddle River, NJ: Pearson Prentice Hall.

Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher’s edition (2 nd ed.) [pp. 289-294]. Tinley Park, IL: Goodheart-Willcox

Section 5

Software/

Online


Page 5-9

Company, Inc.

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 124-125, 130).


Dlabay, L.R., Burrow, J.L., & Kleindl, B. (2009). Intro to business (7 th ed.) [pp.

318-326]. Mason, OH: South-Western Cengage Learning.

Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials

(pp. 114-115). Woodland Hills, CA: Glencoe/McGraw-Hill.

Ivancevich, J. M., & Duening, T. N. (2007). Business principles, guidelines, and practices (2 nd ed.) [pp. 230-231]. Mason, OH: Thomson

.

McConnell, C.R. & Brue, S.L. (2005). Economics: Principles, problems, and policies (16 th ed.) [pp. 395-402, 415-426]. New York: McGraw-Hill/Irwin.

Miller, R.L. (2005). Economics: Today and tomorrow (p. 192). Columbus, OH:

Glencoe/McGraw-Hill.



Rue, L.W., & Byars, L.L. (2006). Business management: Real-world applications & connections (pp. 264, 266-267, 310, 452). New York:

Glencoe/McGraw-Hill.

Sexton, R.L. (2003). Essentials of economics (pp. 145-151, 167-169, 190-

193). Mason, OH: Thomson/South-Western.

AmosWEB. (2000-2011). Law of diminishing marginal returns. Retrieved May

24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=law+of+diminishing+marginal+returns

AmosWEB. (2000-2011). Marginal cost. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=marginal+cost

AmosWEB. (2000-2011). Marginal product. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=marginal+product

AmosWEB. (2000-2011). Marginal revenue. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=marginal+revenue

AmosWEB. (2000-2011). Production function. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=production+function

AmosWEB. (2000-2011). Total revenue. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=total+revenue

Biz/ed. (1996-2011). The nature of production —Stages of production.

Retrieved May 24, 2011, from http://www.bized.co.uk/educators/level2/busactivity/activity/production12.

htm

Johnson, P.M. (1994-2005). Diminishing returns, law of. Retrieved May 24,

2011, from http://www.auburn.edu/~johnspm/gloss/diminishing_returns_law_of tutor2u. (n.d.). Profit and sales revenue maximisation using total cost and total revenue curves. Retrieved May 24, 2011, from http://tutor2u.net/economics/content/topics/buseconomics/objectives_prof itmax.htm

tutor2u. (n.d.). Stages of production. Retrieved May 24, 2011, from http://tutor2u.net/business/gcse/production_stages.htm

Section 5

Box Pattern Handout

Page 5-10

Section 5

Week#

____________

Day(s) to teach:

Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level


6.03(A)Understand economic indicators to recognize economic trends and conditions. (EC:083),

Page 5-11

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

Textbooks


Understand economic indicators to recognize economic trends and conditions.

Describe the economic impact of inflation on business (EC:083)

Specialist

Information 5,7-8; Systems 15; Technology 19; Basic Skills 1-2,4-6; Thinking

Skills 8,12


Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: inflation, inflation rate, deflation, Consumer

Price Index, standard of living, targeted inflation rate, and price stability. b. Describe causes of inflation. c. Explain how inflation impacts the economy. d. Describe the relationship between price stability and inflation. e. Explain problems associated with deflation. f. Discuss reasons why the inflation rate should be above zero. g. Explain how businesses can use the Consumer Price Index. h. Discuss the purpose of the Consumer Price Index (CPI). i. Describe how the Consumer Price Index is determined. j. Identify the major kinds of consumer spending that make up the

Consumer Price Index. k. Explain how the Consumer Price Index is used to find the rate of inflation. l. Describe limitations on the use of the Consumer Price Index.

Have students interpret the Consumer Price Index over a 10-year period and to draw conclusions about the prices of food, clothing, and medical care. Tell them to collaborate with a partner to discuss their findings and conclusions.

Abel, A. B., & Bernanke, B. S. (2005). Macroeconomics (5 th ed.) [pp. 6-8, 49-

50, 400-408, 455-462]. New York: Pearson Addison Wesley

.

Boone, G., & Kurtz, D.L. (2009). Contemporary marketing 2009 (pp. 87-88).

Mason, OH: South-Western Cengage Learning.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [pp.19-20].


Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 494-495]. Mason, OH:

Section 5

Software/

Online


Page 5-12



Company, Inc.

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 389-392).


Clayton, G.E. & Giesbrecht, M.G. (2004). A guide to everyday economic statistics (6 th ed.) [pp. 6, 105-109]. New York: McGraw-Hill/Irwin.


40-41, 489]. Mason, OH: South-Western Cengage Learning.


62, 64). Woodland Hills, CA: Glencoe/McGraw-Hill.

McConnell, C.R. & Brue, S.L. (2005). Economics: Principles, problems, and policies (16 th ed.) [pp. 141-148]. New York: McGraw-Hill/Irwin.



Miller, R.L., & Stafford, A.D. (2010). Economic education for consumers (4 th ed.) [p. 581]. Mason, OH: South-Western Cengage Learning.





AmosWEB. (2000-2011). Consumer Price Index. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=Consumer+Price+Index

AmosWEB. (2000-2011). Deflation. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=deflation

AmosWEB. (2000-2011). Inflation. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=inflation

AmosWEB. (2000-2011). Inflation rate. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=inflation+rate

AmosWEB. (2000-2011). Price stability. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=price+stability

Cross-Curricular Connections. (2011). The CPI —A crystal ball? Retrieved

May 24, 2011, from http://www.econedlink.org/lessons/index.cfm?lesson=EM255&page=teac her

InflationData.com. (2003-2011). Consumer price index. Retrieved May 24,

2011, from http://inflationdata.com/Inflation/Consumer_Price_Index/CPI.asp

Land and Freedom Economic Lessons. (n.d.). The business cycle: 2.

Inflation. Retrieved May 24, 2011, from http://www.landandfreedom.org/econ/econ11f.htm

McMahon, T. (2008, July 16). Inflation cause and effect. May 24, 2011, from http://www.inflationdata.com/inflation/Articles/Inflation_cause_and_effect.

asp

Niederjohn, S. (2009, January 6). Was Babe Ruth underpaid ? Retrieved May

24, 2011, from http://www.econedlink.org/lessons/index.php?lesson=604&page=teacher

Section 5

Week#_____

Day(s) to teach:______

Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

LAP

Textbooks


Page 5-13

6.03(B) Understand economic indicators to recognize economic trends and conditions.

(EC:017),



Explain the concept of Gross Domestic Product (GDP) (EC:017, EC LAP 1)

Specialist


Skills 8,12


Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: gross domestic product (GDP), personal consumption expenditures, gross private domestic investment, government purchases of goods and services, net exports of goods and services, trade deficit, trade surplus, uncounted production, underground economy, and double counting. b. Identify the categories of goods and services that make up GDP. c. Describe problems encountered in calculating GDP. d. Explain the importance of a country's GDP. e. Describe ways to increase GDP. f. Describe how the government responds to changes in GDP. g. Describe ways that businesses respond to changes in GDP.

Ask students to assume that the United States is in a recessionary period and that consumers are worried about losing their jobs and experiencing a reduction in wages. Tell them to explain in a brief paragraph how this fear among consumers will be reflected in GDP. Have students submit the paragraph to you.

MBA Research and Curriculum Center (2011). Measure up [LAP: EC-001].


MBA Research and Curriculum Center (2011). Measure up: Instructor copy



New York: Pearson Addison Wesley

.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [p. 20]. Upper

Saddle River, NJ: Pearson Prentice Hall.

Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 482, 494]. Mason, OH:


Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher’s

Section 5

Software/

Online


Page 5-14 edition (2 nd ed.) [pp. 114-116]. Tinley Park, IL: Goodheart-Willcox

Company, Inc.

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 341-344, 350-

368). Columbus, OH: Glencoe/McGraw-Hill.

Clayton, G.E. & Giesbrecht, M.G. (2004). A guide to everyday economic statistics (6 th ed.) [pp. 15-27]. New York: McGraw-Hill/Irwin.


34-35, 38, 40]. Mason, OH: South-Western Cengage Learning.






Miller, R.L., & Stafford, A.D. (2010). Economic education for consumers (4 th ed.) [pp. 580-581]. Mason, OH: South-Western Cengage Learning.


57-58, 301-324). Upper Saddle River, NJ: Prentice Hall.



AmosWEB. (2000-2011). Double counting. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=double+counting

AmosWEB. (2000-2011). Government purchases. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=government+purchases

AmosWEB. (2000-2011). Gross private domestic investment. Retrieved May

24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=gross+private+domestic+investment

AmosWEB. (2000-2011). Gross Domestic Product. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=gross+domestic+product

AmosWEB. (2000-2011). Net exports of goods and services. Retrieved May

24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=net+exports+of+goods+and+services

AmosWEB. (2000-2011). Personal consumption expenditures. Retrieved May

24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=personal+consumption+expenditures

AmosWEB. (2000-2011). Underground economy. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=underground+economy

MBA Research and Curriculum Center (2011). Measure up [LAP: EC-001 —


Investopedia. (2011). What is GDP and why is it so important?

Retrieved May

24, 2011, from http://www.investopedia.com/ask/answers/199.asp

QuickMBA. (1999-2010). Gross Domestic Product (GDP). Retrieved May 24,

2011, from http://www.quickmba.com/econ/macro/gdp/

Section 5

Week#______


Knowledge/

Skill

Statement

Performance

Element

Performance

Indicator

Level

SCANS

21 st Century

Skills

Objectives

Performance

Activity

Resources

Textbooks


Page 5-15

6.03 (C) Understand economic indicators to recognize economic trends and conditions.

(EC:082),



Discuss the impact of a nation’s unemployment rates (EC:082) (SP)

Specialist

Information 5,7; Systems 15; Basic Skills 1-2, 5-6; Thinking Skills 11-12


Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: unemployment rate, frictional unemployment, structural unemployment, cyclical unemployment, seasonal unemployment, technological unemployment, and full employment. b. Discuss individual costs of unemployment. c. Describe economic benefits of unemployment. d. Explain theories of the causes of unemployment. e. Explain why the unemployment rate understates employment conditions. f. Describe the costs of unemployment for a nation.

Tell students to determine the state’s current unemployment rate and to compare this with the national unemployment rate. Ask them to identify ways that the state’s fiscal policy might account for the differences identified.

Discuss student findings and conclusions as a large group.




Company, Inc.







64). Woodland Hills, CA: Glencoe/McGraw-Hill

.




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212-213, 331-336, 351). Upper Saddle River, NJ: Prentice Hall.



AmosWEB. (2000-2011). Cyclical unemployment. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=cyclical+unemployment

AmosWEB. (2000-2011). Frictional unemployment. Retrieved May 24, 2011, from http://www.amosweeb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=frictional+unemployment

AmosWEB. (2000-2011). Full employment. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=full+employment

AmosWEB. (2000-2011). Seasonal unemployment. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=seasonal+unemployment

AmosWEB. (2000-2011). Structural unemployment. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=structural+unemployment

AmosWEB. (2000-2011). Unemployment rate. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=unemployment+rate

Chapter 6: Unemployment. (n.d.). Retrieved May 24, 2011, from http://www.oswego.edu/~edunne/200ch6.html

Search.com. (n.d.). Unemployment.

Retrieved May 24, 2011, from http://www.search.com/reference/Unemployment

James, J. (2008, September 23 The impact of unemployment on our society.

Retrieved May 24, 2011, from http://www.helium.com/items/23934-theimpact-of-unemployment-on-our-society

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6.03 (D) Understand economic indicators to recognize economic trends and conditions),

(EC:084),



Explain the economic impact of interest-rate fluctuations (EC:084)

Specialist


Financial, Economic, Business and Entrepreneurial Literacy 1, 2; Critical

Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: interest rate, nominal interest rate, real interest rate, interest-rate fluctuation, default risk, liquidity risk, maturity risk. b. Discuss causes of interest-rate fluctuations. c. Explain the impact of interest rate fluctuations on an economy. d. Describe the relationship between interest rates and the demand for money. e. Describe the relationship between inflation and interest rates. f. Discuss factors that create differences in the amount of interest charged on credit transactions (e.g., levels and kinds of risk, borrowers’ and lenders’ rights, and tax considerations). g. Describe kinds of risk associated with variances in interest rates (i.e., default, liquidity, and maturity). h. Explain how fiscal policies can affect interest rates.

Ask students to locate and read articles about trends in interest rates. Tell them to summarize the articles, identifying the nature of the trends and reasons that they are occurring. Have them determine the impact that these trends are having on local businesses. Have students discuss their findings with the class.

Abel, A. B., & Bernanke, B. S. (2005). Macroeconomics (5 th ed.) [pp. 51-54,

268-269, 559-560]. New York: Pearson Addison Wesley.


[pp. 16-17, 177-178]. Upper Saddle River, NJ: Pearson Prentice Hall.

Clayton, G.E. (2005). Economics: Principles & Practices (pp. 428-431, 453-

454). Columbus, OH: Glencoe/McGraw-Hill.



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41-42, 59, 489]. Mason, OH: South-Western Cengage Learning.


67). Woodland Hills, CA: Glencoe/McGraw-Hill.


Miller, R.L., & Stafford, A.D. (2010). Economic education for consumers (4 th ed.) [p. 268]. Mason, OH: South-Western Cengage Learning.


312-313, 343, 430-431). Upper Saddle River, NJ: Prentice Hall.

Sexton, R.L. (2003). Essentials of economics (pp. 262-263, 315-316, 405-

412). Mason, OH: Thomson/South-Western.

Berger, A.N., Espinosa-Vega, M.A., Frame, W.S., & Miller, N.H. (n.d.). Debt maturity, risk, and asymmetric information.

Retrieved May 24, 2011, from http://www.federalreserve.gov/pubs/feds/2004/200460/200460pap.pdf

Moffatt, M. (2011). What are interest rates? Retrieved May 24, 2011, from http://economics.about.com/cs/studentresources/f/interest_rate.htm

Moffatt, M. (2011). What is the demand for money? Retrieved May 24, 2011, from http://economics.about.com/cs/money/a/money_demand.htm

Moffatt, M. (2011). What’s the difference between nominal and real?

Retrieved May 24, 2011, from http://economics.about.com/cs/macrohelp/a/nominal_vs_real.htm

Saywer, T. (2011). Understanding interest rate fluctuations . Retrieved May

24, 2011, from http://www.badcreditloancenter.com/understandinginterest-rate-fluctuations/

SparkNotes .(2011). Tax and fiscal policy: Interest rates and fiscal policy.

Retrieved May 24, 2011, from http://www.sparknotes.com/economics/macro/taxandfiscalpolicy/section1

.html

SparkNotes .(2011). Tax and fiscal policy: Problems.

Retrieved May 24, 2011, from http://www.sparknotes.com/economics/macro/taxandfiscalpolicy/problem s.html

Section 5

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LAP

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Page 5-19

6.03(E) Understand economic indicators to recognize economic trends and conditions

(EC:018)



Determine the impact of business cycles on business activities (EC:018,

EC LAP 9)

Specialist


Skills 12


Thinking and Problem Solving Skills 1, 3; Communication a. Define the following terms: business cycles, expansion, peak, contraction and trough. b. Identify the phases of a business cycle. c. Describe the expansion phase of a business cycle. d. Describe the peak phase of a business cycle. e. Describe the contraction phase of a business cycle. f. Describe the trough phase of a business cycle. g. Explain how knowledge of business cycles benefits businesspeople. h. Describe internal causes of business cycles. i. Explain external causes of business cycles.

Ask students to read business articles about the current economic conditions and to draw conclusions from those articles about the phase of the existing business cycle. Tell them to identify causes of the phase and businesses’ reactions. Question them about whether changes are taking place that would indicate a new phase is beginning. Have students present their conclusions and findings to the class.

MBA Research and Curriculum Center. (2011). Boom or bust (Business cycles) [LAP: EC-009]. Columbus, OH: Author.

MBA Research and Curriculum Center. (2011). Boom or bust (Business cycles): Instructor copy [LAP: EC-009]. Columbus, OH: Author.

Abel, A. B., & Bernanke, B. S. (2005). Macroeconomics (5 th ed.) [pp. 276-304,

356-373]. New York: Pearson Addison Wesley.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [p.16]. Upper

Saddle River, NJ: Pearson Prentice Hall.

Burrow, J.L. (2006). Marketing (2nd ed.) [p. 495]. Mason, OH:



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Company, Inc.





38-40, 176-177]. Mason, OH: South-Western Cengage Learning.











AmosWEB. (2000-2011). Business cycle phases. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=business+cycle+phases

AmosWEB. (2000-2011). Business cycles. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=business+cycles

AmosWEB. (2000-2011). Contraction. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=contraction

AmosWEB. (2000-2011). Expansion. Retrieved M May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=expansion

AmosWEB. (2000-2011). Peak. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=peak

AmosWEB. (2000-2011). Trough. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=trough

MBA Research and Curriculum Center. (2011). Boom or Bust [LAP: EC-009:


Moffatt, M. (2011). What is the business cycle? Retrieved May 24, 2011, from http://economics.about.com/cs/studentresources/f/business_cycle.htm

Romer, C.D. (2008). Business cycles. Retrieved May 24, 2011, from http://www.econlib.org/Library/Enc/BusinessCycles.html

Tatum, M. (2011). What is a business cycle ?

Retrieved May 24, 2011, from http://www.wisegeek.com/what-is-a-business-cycle.htm

Section 5

Key Points

Briefing: Business Cycles

Page 5-21

Define business cycles.

The ups and downs in economic activity

Business fluctuations

Periods of expansion and contraction in economic activities (i.e., production, consumption, exchange, and distribution)

They affect all aspects of our economy, including employment, prices, incomes, and production.

Describe that when studying business cycles, economists examine fluctuations in the level of an economy’s total output.

Total output is based on real gross domestic product (GDP).

Read GDP is GDP that has been adjusted for inflation.

As a country’s real GDP increases, economic activities increase; the economy grows.

As a country’s real GDP decreases, so do its economic activities; the economy declines.

Explain the benefits of a growing economy.

Provides a higher standard of living

Creates new and additional jobs

Enables the government to fulfill its duties more thoroughly

Resolves domestic problems

Discuss the importance of understanding business cycles.

Businesspeople can take steps to avoid the extreme ups and downs of the cycle by anticipating changes needed in employment, production, pricing, and purchasing.

Describe the unpredictability of business cycles.

There’s no exact way to predict the length or severity of a business cycle.

Some have lasted two years, others 10 years.

It’s difficult to predict the beginning and end of cycles.

This heightens the uncertainty of producers and consumers.

Section 5


Page 5-22

Explain the phases of business cycles.

Expansion : the growth part of the cycle; a time of economic prosperity; everyone has a hopeful economic outlook and spends more money (i.e., consumers buy more durable goods; producers invest in new equipment that enables them to produce more goods and services); demand, therefore, is increasing which requires more workers to be hired and more factories and businesses to be built; more money is put into the circulation and interest rates are decreased by the

Federal Reserve System.

Peak : the high point of the economic prosperity that has existed; demand begins to exceed production capacities, and producers raise prices to offset the high demand; interest rates begin to rise; demand for all resources exceeds their availability; everyone has a less hopeful economic outlook, and consumers begin to save more so that their spending decreases; economic activities level off.

Contraction : The demand for goods/services begins to fall and unemployment rises; a bad time for businesses since consumers are spending less and saving more; businesses’ bottom lines suffer, and some are experiencing losses to the point that they are forced to close; demand continues to fall, and production is decreased; inventories build up causing workers to lose their jobs, thereby further decreasing the demand for goods and services; prices decrease to attract customers; interest rates decrease. When a contraction lasts for six months, it’s considered a recession. If a recession continues and is severe, it’s a depression; many people lose their jobs, and businesses fail.

Trough : The final phase of a business cycle; reached when economic activities stop their decline. This is the low point of economic activity when unemployment is very high, and even more businesses fail. This phase stays in effect until consumers and producers become more hopeful about the economy and start to buy more goods and services.

Discuss internal causes of business cycles that take place within the economic system itself.

Aggregate demand : This is the total demand for an economy’s goods and services and can pull GDP up or down to cause business cycles. When it’s rising, businesses increase production, more workers are hired, and employees earn more to spend on goods and services. If aggregate demand continues to grow to the point that produc tion can’t meet demand, prices will rise rapidly —known as inflation, and consumers have to pay more to buy the same goods and services. If aggregate demand decreases, production and employment will decrease, and production will slow. Recessions or depressions result when aggregate demand stays too low for a long time.

Once it starts rising again, expansion and prosperity return.

Money supply : This is the total quantity of money that exists at one time in a nation, and as it goes up or down, so does the economy. The federal government restricts the flow of money by raising taxes, raising the interest rates to borrow money, and purchasing fewer goods and services to run the government. The amount of money in circulation can be increased when the federal government spends more, lowers interest rates, and lowers taxes.

When interest rates are low, more money can be borrowed to build houses, office buildings, and industrial plans. Greater production results in more available work and lowered unemployment rates. This is a period of expansion. When money is in short supply, unemployment will be high, business activities slow down, and a period of contraction begins.

Investment in capital goods : When producers are hopeful about the future of business, they buy new equipment and build or expand their business

Section 5


Page 5-23 facilities. This investment encourages the expansion of economic activities.

When producers decrease their investment in capital goods, economic activities contract.

Inventory levels : When producers are optimistic about business activity, they increase their inventory levels to be prepared for the increase in demand, thereby expanding economic activities. When they feel less hopeful, they decrease their buying of new goods and try to sell the ones on hand, thereby causing the economy to contract.

Explain external causes of business cycles that take place outside the economic system.

Political changes . A change in the political party in power can cause changes in economic activities. For example, if the elected officials support business interests, economic activities are likely to expand.

Climatic changes . Many jobs are affected by climatic conditions. Extreme weather conditions, such as droughts, floods, and blizzards, can negatively affect many economic activities.

International relations . The interaction of our country with other countries can expand or contract economic activities. For example, a war or conflict may increase the production of defense materials, thereby expanding our economic activities. When the conflict ends, the same quantity of defense materials will no longer be needed, thereby contracting economic activities.

Discoveries and innovations . The discovery of new products, techniques, and resources can stimulate economic activities. Large sums of money must be invested to develop and improve the products, and a variety of new jobs is created. Since these occur irregularly, they contribute to changes in economic activities.

Section 5

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Textbooks


6.04 Determine global trade’s impact on business decision-making. (EC:016), (EC:100), (EC:045)

(SUPPLEMENTAL)

Page 5-24


Determine global trade’s impact on business decision-making.

Explain the nature of global trade (EC:016, EC LAP 4) (SUPPLEMENTAL)

Specialist


Global Awareness 1; Financial, Economic, Business and Entrepreneurial

Literacy 2; Critical Thinking and Problem Solving Skills 1, 3; Communication

& Collaboration 1 a. Define the following terms: imports, exports, international trade, absolute advantage, and comparative advantage. b. Describe reasons that international trade takes place. c. List gains from international trade. d. Identify ways in which the U.S. economy is affected by international trade. e. Describe types of trade barriers. f. Explain techniques used by governments to improve international trade relations.

Arrange for students to participate in a service-learning project being conducted at an elementary or middle school to explain to younger students why the United States would trade with other countries when it has an absolute advantage. Have them prepare visuals to support the presentation and activities to reinforce it. Ask students to analyze the strengths and weaknesses of the presentation, identifying changes that they would make if they were able to repeat the presentation.

Marketing Education Resource Center. (2005). Beyond US [LAP: EC-004].


Marketing Education Resource Center. (2005). Beyond US: Instructor copy




Boone, L. E. & Kurtz, D.L. (2006). Contemporary marketing (pp. 227-243).

Mason, OH: Thomson South-Western.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [pp. 56-66].


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Brown, B.J. & Clow, J.E. (2006). Introduction to business (pp. 146-155).

Woodland Hills, CA: Glencoe/McGraw-Hill.

Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 37, 482-486]. Mason, OH:


Clark, B., Sobel, J., & Basteri, C.G. (2010). Marketing dynamics: Teacher’s edition (2 nd ed.) [pp. 147-153, 176]. Tinley Park, IL: Goodheart-Willcox

Company, Inc.


53-69]. Mason, OH: South-Western Cengage Learning.

Etzel, M.J., Walker, B.J. & Stanton, W.J. (2007). Marketing (14 th ed.)

[pp. 48-64]. New York: McGraw-Hill/Irwin.

Farese, L.S., Kimbrell, G. & Woloszyk, C.A. (2009). Marketing essentials



Rue, L.W. & Byars, L.L. (2006). Business management: Real-world applications & connections (pp. 152-171). Woodland Hills, CA: McGraw-

Hill/Glencoe.

Americans and the World. (n.d.). International trade. Retrieved May 24, 2011, from http://www.americansworld.org/digest/global_issues/intertrade/summary.cfm

AmosWEB. (2011). Absolute advantage. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=absolute+advantage

AmosWEB. (2011).

Comparative advantage.

Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=comparative+advantage

AmosWEB. (2011). Exports. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=exports

AmosWEB. (2011). Imports. Retrieved May 24, 2011, from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=imports

AmosWEB. (2011). International trade. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=international+trade

AmosWEB. (2011). Trade barriers. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=trade+barriers

Marketing Education Resource Center. (2005). Beyond US [LAP: EC-004:


McGaughey, C. (2004, May 24). U.S. farmers and the Cuban embargo.

Retrieved May 24, 2011, from http://www.econedlink.org/lessons/index.cfm?lesson=EM529&page=teac her

U.S. Department of Commerce. (n.d.). International Trade Administration.

Retrieved May 24, 2011, from http://trade.gov/index.asp

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Page 5-26



Describe the determinants of exchange rates and their effects on the domestic economy (EC:100) (SUPPLEMENTAL)

Specialist

Information 5,7; Systems 15; Basic Skills 1-3, 5-6; Thinking Skills 11-12

Global Awareness 1; Financial, Economic, Business and Entrepreneurial

Literacy 2; Critical Thinking and Problem Solving Skills 1, 3 a. Define the terms exchange rate, exchange-rate quotation, free-floating currency, pegged currency, foreign-exchange market, strong/weak dollar, and arbitrage. b. Distinguish between direct and indirect exchange-rate quotations. c. Interpret exchange rates. d. Identify factors that increase demand for currencies. e. Explain factors that cause a currency to lose value relative to other f. currencies.

Discuss how economic factors affect exchange rates. g. Explain how market psychology can affect exchange rates. h. Describe how political conditions can influence exchange rates. i. Distinguish between free-floating and pegged currency. j. Describe factors that influence free-floating currency. k. Identify institutions that utilize the foreign exchange market. l. Discuss types of financial instruments used in foreign exchange markets. m. Explain the advantages/disadvantages of a strong U.S. dollar. n. Describe the advantages/disadvantages of a weak U.S. dollar. o. Explain the risks of speculating on the price of foreign currency.

Tell students to imagine that they are a U.S. importer who is trying to decide among three countries from which to obtain goods. Ask them to select both the product and the countries. The product selected should be one of interest to the student, and the countries identified should actually export the item.

Have students write a memorandum to the company’s owner recommending one of the countries based on exchange rates. Tell students to compare and discuss their memorandums with a classmate.

Abel, A.B., & Bernanke, B.S. (2005). Macroeconomics (5 th ed.) [pp.469, 479].


Bovée, C. L. & Thill, J.V. (2008). Business communication today (9 th ed.) [pp.

65-66]. Upper Saddle River, NJ: Pearson Prentice Hall.

Burrow, J.L. (2006). Marketing (2nd ed.) [p. 488]. Mason, OH:



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Company, Inc.




Dlabay, L.R., & Burrow, J.L. (2008). Business finance (pp. 55-56, 382-388).

Mason, OH: South-Western Cengage Learning.




(pp. 86, 167). Woodland Hills, CA: Glencoe/McGraw-Hill.

Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal finance (p. 248). New York: Glencoe/McGraw-Hill.




Miller, R.L., & Stafford, A.D. (2010). Economic education for consumers (4 th ed.) [pp.576-578]. Mason, OH: South-Western Cengage Learning.





AmosWEB. (2000-2011). Exchange rate. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=exchange+rate

AmosWEB. (2000-2011). Foreign exchange rate. Retrieved May 24, 2011, from http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=foreign+exchange+market

Cross-Curricular Connections. (2002, October 23). Marketplace: Let’s go

Euro ! Retrieved May 24, 2011, from http://www.econedlink.org/lessons/index.cfm?lesson=EM299&page=teac her

Forex Trading. (n.d.). Exchange rate. Retrieved May 24, 2011, from http://www.forex-trading-i.com/exchange-rate.html

Grabianowski, E. (1998-2011). How exchange rates work. Retrieved May 24,

2011, from http://money.howstuffworks.com/exchange-rate.htm

Heakal, R. (2011). Floating and fixed exchange rates. Retrieved May 24,

2011, from http://www.investopedia.com/articles/03/020603.asp

Hupp, J. (2011). 50 factors that affect the value of the US dollar. Retrieved

May 24, 2011, from http://www.currencytrading.net/2007/50-factors-thataffect-the-value-of-the-us-dollar/

Stott, D. (2004, October 15). Weak dollar. Retrieved May 24, 2011, from http://www.gold-eagle.com/gold_digest_04/stott101404.html

Wynn, L.S. (2011, April 10). What is arbitrage? Retrieved May 24, 2011, from http://www.wisegeek.com

/what-is-arbitrage.htm

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Page 5-28



Discuss the impact of culture and social issues on global trade (EC:045,

EC LAP 24) (SUPPLEMENTAL)

Specialist

Information 5,7; Interpersonal 14; Systems 15; Basic Skills 1-2, 5-6; Thinking

Skills 12

Global Awareness 1, 3; Financial, Economic, Business and Entrepreneurial

Literacy 2; Critical Thinking & Problem Solving 1, 3; Communication &

Collaboration 1 a. Describe Hofstede’s dimensions of national cultures (i.e., individualism vs. collectivism, power distance, uncertainty avoidance, masculinity vs. femininity). b. Explain why business subcultures shape the behaviors of businesspeople. c. Explain how language impacts knowing when and how business will be conducted. d. Explain how culture influences communication

.

e. Discuss how the interrelationship of business law and religion impacts international business activities. f. Identify ways to overcome issues with the crossover of business law and religion in international business activities. g. Describe how corruption impacts international business activities. h. Explain how a country’s level of involvement impacts international trade. i. Discuss how culture can hamper international trade. j. Explain how culture can impact trade partner selection. k. Describe how culture can impact negotiations in international trade. l. Discuss how culture can impact product delivery in international trade. m. Explain how positive/negative experiences with a culture can update one’s beliefs. n. Describe how culture can impact the selection of trade goals in international trade.

Ask students to select a country of interest, research its culture, and identify aspects of the country’s culture that would impact marketing activities. Tell students to use a software program to prepare an informative brochure that could be used by marketers to help them succeed in doing business in that country. Encourage students to import pictures into the brochure to depict the cultural aspects identified. Have students present the brochure to the class.

Section 5

Textbooks

Software/

Online


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MBA Research and Curriculum Center. (2012). On top of the world [LAP: EC-

024]. Columbus, OH: Author. (Available Fall 2011)

MBA Research and Curriculum Center. (2012). On top of the world: Instructor copy [LAP: EC-024]. Columbus, OH: Author. (Available Fall 2011)

Ball, D.A., McCulloch, W.H., Frantz, P.L., Geringer, J.M., & Minor, M.S.

(2006). International business: The challenge of global competition (10 th ed.) [pp. 177-209]. Boston: McGraw-Hill/Irwin.

Boone, L. E. & Kurtz, D.L. (2006). Contemporary marketing (pp. 160, 228-

230). Mason, OH: Thomson South-Western.

Bovée, C. L. & Thill, J.V. (2008). Business communication today (9 th ed.) [pp.

68-82]. Upper Saddle River, NJ: Pearson Prentice Hall.

Bovée, C. L., & Thill, J.V. (2008). Business in action (4 th ed.) [pp. 66-69, 124,

132, 222]. Upper Saddle River, NJ: Pearson Prentice Hall.

Burrow, J.L. (2006). Marketing (2nd ed.) [pp. 495-496]. Mason, OH:



Company, Inc.


60-61]. Mason, OH: South-Western Cengage Learning


86). Woodland Hills, CA: Glencoe/McGraw-Hill.

BizAims. (2009, February 27). Cultural differences in business . Retrieved May

24, 2011, from http://www.bizaims.com/articles/business+economy/cultural+differences

+business

Cyborlink.com

. (1998-2011). Retrieved May 24, 2011, from http://www.cyborlink.com/

Geert Hofsteade and Geert Jan Hofsteade. (n.d.). Culture . Retrieved May 24,

2011, from http://www.geerthofstede.nl/culture.aspx

ITIM International. (1967-2009). Geert Hofstede ™ cultural dimensions .

Retrieved May 24, 2011, http://www.geert-hofstede.com/

Kwintessential. (n.d.). Cross culture business blunders . Retrieved May 24,

2011, from http://www.kwintessential.co.uk/culturalservices/articles/crosscultural-blunders.html

Kwintessential. (n.d.). Language, intercultural, cross cultural, expatriate, and business articles.

Retrieved May 24, 2011, from http://www.kwintessential.co.uk/cultural-services/articles.html

MBA Research and Curriculum Center (2012). On top of the world [LAP: EC-

24 —Presentation Software]. Columbus, OH: Author. (Available Fall

2011)

Mind Tools. (1995-2011). Cross-cultural business etiquette: Learning the ins and outs of global business.

Retrieved May 24, 2011, from http://www.mindtools.com/pages/article/Cross-

CulturalBusinessEtiquette.htm

Mody, A. (1999-2011). Effective cross culture communication in international business . Retrieved May 24, 2011, from http://www.ehow.com/way_5903972_effective-cultural-communicationinternational-business.html

WikiUniversity.com (2007). Unit 1.2: Cultural issues affecting international

Section 5


Page 5-30 trade. Retrieved May 24, 2011, from http://en.wikiversity.org/wiki/Cultural_Issues_Affecting_International_Tra de

Section 5


Page 5-31

6.03(A)Understand economic indicators to recognize economic

Week#

Days to

teach:

6.01(A) Analyze cost/profit relationships to guide business decision-making. (EC:014),

(EC:015) (SUPPLEMENTAL)

Briefing: Specialization/Division of Labor

Briefing: Specialization/Division of Labor

6.01 (B) Analyze cost/profit relationships to guide business decision-making. (EC:014),

(EC:015) (SUPPLEMENTAL)

6.02 Analyze cost/profit relationships to guide business decision-making. (EC:023)

.

Week#

____________

Day(s) to teach: