BMG100 DAY 3

Deadlines and Slides

• Important Deadlines:

  • Miss the deadline for the proof by banks, specifically regarding the number 40.

  • Communicate any deadline issues immediately via email or during class.

• Slide Content:

  • Some slides contain text intentionally left out; it is not a mistake but a strategy to keep students engaged.

  • Be aware that some slides for Course 4 may have missing text intermittently until the semester ends.

Economic Cycles and Productivity

• Unemployment:

  • Definition: The unemployment rate is the percentage of individuals able to work but unable to find a job.

  • Exclusions: Children and certain demographics are not counted in this percentage.

  • Recent Trends: After a rise in unemployment due to COVID-19, rates have decreased significantly since 2020, reaching historically low levels.

  • Government expectations for unemployment in 2023 were around 8.6-6.5%.

Supply and Demand Dynamics

• Wage Negotiation and Inflation:

  • Labor shortages lead to negotiations for better wages and conditions, possibly driving inflation as businesses adjust pricing.

  • Companies may need to either raise prices or lower operational costs to remain profitable.

  • Historical context: Predictions made in 2009 about current economic conditions have largely come true, influenced heavily by COVID-19.

Historical Context of Canadian Economy

• Natural Resources and Trade:

  • Canada’s initial economy was based on agriculture and fishing; trade was significant in early development.

  • Industrialization began in the late 19th century, pushing rural populations towards urban centers for manufacturing jobs.

• Market Shifts:

  • Post-industrial region shift: What was once produced in Canada is now often manufactured elsewhere unless significant technological value is added.

The Evolution of Marketing and Services

• Emergence of Marketing:

  • Marketing as a defined sector emerged around the mid-20th century, influencing business practices permanently.

  • Increased specialization in business processes has improved efficiency but led to reduced production capabilities tied to labor.

  • Service-based economies developed as life became busier and more diversified.

Entrepreneurial Ecosystem

• Definition of Entrepreneurship:

  • Entrepreneurs take risks to create innovative products or services for financial gain.

  • The entrepreneurial landscape in certain regions of Canada, especially Quebec, is strong and contributes significantly to the economy.

Modern Economic Structure

• Canadian Mixed Economy:

  • The economy is characterized as a mixed economy, balancing federal, provincial, and local governments' influences.

  • Interest rate adjustments have been used to manage national debt and spending effectively, aiming to prevent economic disruptions.

Ethical Considerations in Business

• Code of Conduct:

  • Importance of adhering to company policies regarding gifts and conflicts of interest.

  • Example scenario: Employees should be cautious with accepting gifts, especially those above set thresholds to prevent any ethical violations.

• Reporting Mechanisms:

  • Employees must understand the correct procedures for reporting unethical behavior or conflicts within their organization, such as using a confidential hotline.

Handling Ethical Conflicts

• Navigating Situations:

  • Employee dilemmas illustrated through scenarios, stressing the importance of integrity and adherence to ethics.

  • Understanding organizational culture and policies concerning interpersonal relationships and conflict scenarios is vital for professional conduct.