2/21 BUS 313

Overview

  • Overview of upcoming classes and presentations: finishing Chapter 4, starting Chapter 5, and preparing for midterms.

Important Dates

  • Midterm presentations: next Wednesday and Friday.

  • Each group needs to submit their presentation by 1:30 PM on Wednesday.

Preparation for Midterms

  • Review notes and handouts.

  • Study guides will be provided with specific directions for the midterm exam.

  • Bring a written sheet (one piece of paper) for reference during the exams.

Study Tips

  • Learn your notes thoroughly: Important to understand everything discussed in lectures and covered in handouts.

  • Compare class handouts to textbook material to solidify understanding.

  • All material on the test will be from covered content; no surprises.

Midterm Exam Format

  • The exam will consist of 50 multiple-choice questions.

  • Fill in answers for every question; incorrect answers do not count against the score.

Current Discussions in Class

  • Transition from discussing the modeling of trade to exploring real-world applications in Chapter 5.

  • Focus on the differences between the manufacturing and service sectors, particularly in China and the U.S.

Comparative Advantages in Manufacturing

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  • Large Labor Force: China has high employment due to low wages, leading to competitive pricing of goods.

  • High-tech Workers: American workers may migrate to China, attracted by job availability despite lower wages.

  • Product Cycle: Discuss how labor markets and production shift based on product lifecycle, especially related to the HO model.

Impacts of Global Trade on Labor

  • US manufacturing jobs are declining; service jobs remain stable due to demand even as productive efficiency rises in the US.

  • Distinctions in manufacturing (goods) vs. service sectors (services).

Migration and Labor Trends

  • Discuss the concept of push and pull factors affecting migration.

  • Supply Push Factors:

    • Recessions impacting job availability.

    • Structural economic changes causing dislocation.

    • Wars and natural disasters pushing people to migrate.

  • Demand Pull Factors:

    • Increased job availability and favorable business conditions in destination countries.

    • Established social networks encouraging migration.

Economic Structures and Policies

  • Describes how clustering in industries (e.g., Hollywood for entertainment, Silicon Valley for tech) affects trade dynamics.

  • Discuss barriers to trade, including tariffs and quotas, and their impact on the migration of jobs and labor.

Future Lessons

  • Chapters five and beyond will explore economies of scale and inter-industry trade.

  • Students are encouraged to clarify any questions regarding individual projects and presentations before the next class.