BA 115: lecture recording on 18 February 2025 (Exam 1 Review)

Entrepreneurship: Understand the definition and key concepts of entrepreneurs and entrepreneurship in the context of economic development.
Profit and Loss: Differentiate between profit (revenues exceeding costs) and loss (costs exceeding revenues).
Standard of Living vs. Quality of Life:
- Standard of Living: Economic measure, often based on GDP per capita.
- Quality of Life: Broader measure including health, education, freedom, and environmental quality.
Stakeholders: Review on page five of the textbook; includes individuals and organizations that have an interest in the business.
Profit vs. Nonprofit Organizations: Understand the key differences:
- Profit Organizations: Aim to generate income.
- Nonprofit Organizations: Focus on serving the community without profit motives.
Factors of Production: Identify and describe different types (land, labor, capital, entrepreneurship).
Productivity: The efficiency with which goods are produced or services are provided.
Demography: Study of populations, including size, distribution, and trends that influence economics.

Definitions of Economics:
- Macroeconomics: Focuses on the economy as a whole (national performance). Key concepts include GDP and unemployment.
- Microeconomics: Focuses on individual markets and consumer behavior (specific economic agents).
Gross Domestic Product (GDP): Measure of a nation's economic performance.
- Final goods and services produced within a country in a year.
Types of Unemployment: Understand the four types, including:
- Cyclical Unemployment: Related to economic downturns.
- Seasonal Unemployment: Related to seasonal work.
Adam Smith and the Invisible Hand Theory: Importance of self-interest in economic decisions leads to societal benefit.
Thomas Malthus: Discussed resources and population; viewed as a dismal scientist.
Economic Systems: Understand capitalism, socialism, and communism:
- Capitalism: Private ownership and free market.
- Socialism: Government ownership of some industries aimed at equality.
- Communism: Political and economic system where government controls all means of production for equality.

Comparative vs. Absolute Advantage: Understand these concepts in trade.
Importing vs. Exporting: Definitions and implications for the economy.
Balance of Payments and Balance of Trade: Differentiate between trade deficits and surpluses.
Calculating GDP: C + I + G + (X - M); understand different methods and the significance of each component.
Strategies for Global Market Entry: Understand contracting and negotiation aspects such as:
- Licensing: Granting permission for others to produce goods.
- Joint Ventures: Collaborating with foreign firms for shared resources.
- Foreign Direct Investment: Purchasing assets in a foreign country.
Multinational Corporations: Companies operating in multiple countries.
Exchange Rates: Understand their role in international trade.
Tariffs and Embargoes: Different types and purpose in global economics.

Whistleblower: Definition and implications in corporate ethics.
Legal vs. Ethical: Understand scenarios where legality does not equate to ethical behavior.
Transparency Laws: Familiarize with legislation relating to corporate governance.
Ethical Decisions in Foreign Markets: Recognizing cultural differences in ethical standards.

The final exam will cover all chapters, with 75-80% of questions likely drawn from the study guide provided.
Key Definitions and Concepts: Ensure thorough understanding of terms and their application.
Read all chapters thoroughly before the exam; scenario-based questions are likely.