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.