Principles of Business, Marketing, and Finance Economic and Ethical Activity in a Changing World Copyright © Texas Education Agency, 2011. All rights reserved

Economic Measurements for a Changing World Gross Domestic Product-total value of goods and service produced in a country in a given year Consumer goods and services Business goods and services Government goods and services Goods and services sold to other countries Explain how international business has affected gross domestic product in both a positive and negative way. Copyright © Texas Education Agency, 2011. All rights reserved

Economic Measurements for a Changing World Unemployment Rate Rate of Inflation -rate at which the cost of goods and services rise Standard of Living -amount of goods and services the average citizen can buy Deflation -when the supply of good is greater than the demand Ask students to explain how an increasing unemployment rate has a domino affect on the economy. Have someone look up on the internet what the current unemployment rate is. Copyright © Texas Education Agency, 2011. All rights reserved

Economic Measurements for a Changing World National Debt -total amount of money a government owes Budget Surplus -when a government’s revenue exceeds its expenditures during a one-year period Copyright © Texas Education Agency, 2011. All rights reserved

Four Phases of the Business Cycle Basic Business Cycle Prosperity Recession Depression Recovery Prior to any discussion have students write down which cycle they believe the economy is in currently and then at the end of the discussion have then show their answers to the class and see if anyone wants to change their answer. Prosperity-peak of economic activity Recession-economic slowdown Depression-a deep recession that affects the entire economy and lasts for several years Recovery-the rise in business activity after a recession or depression Copyright © Texas Education Agency, 2011. All rights reserved

Ethics A set of moral principles by which people conduct themselves personally, socially, or professionally Businesses have a legal responsibility to do what is right for society’s welfare Business Ethics-a set of laws about how a business should conduct itself Explain how bribery is expected in business transactions for some countries. Then ask students if U.S. businesses should resort to bribery to increase the GDP.   Copyright © Texas Education Agency, 2011. All rights reserved

Unethical Business Practices Bad for business Affects a business’s profits, customer base, and employee loyalty Sweatshops -factories that have unsafe working conditions, treat workers badly, and pay poorly Copyright © Texas Education Agency, 2011. All rights reserved

Important Ethical Questions Brainstorm ethical issues in the workplace that students today may have to make decisions about. Then explain how ethics involves doing the right thing when it is more attractive to do the unethical activity.   Is it against the law? What if everyone did this? Am I sacrificing long-term benefits for short term gains? Copyright © Texas Education Agency, 2011. All rights reserved

Making Decisions on Ethical Issues Identify the ethical dilemma. Discover alternative actions. Decide who might be affected. List the probable effects of the alternatives. Select the best alternative. Copyright © Texas Education Agency, 2011. All rights reserved

Social Responsibility Duty to do what is best for the good of society Businesses have a responsibility to consumers, workers, and society Copyright © Texas Education Agency, 2011. All rights reserved

Government’s Responsibility to Customers FDA (Food and Drug Administration) FTC (Federal Trade Commission CPSC (Consumer Product Safety Commission) USDA (United States Department of Agriculture) Ask students to list the four government agencies identified in the slide and then see if the can explain the consumer protection role for each agency.   Copyright © Texas Education Agency, 2011. All rights reserved

Business’ Responsibility to Employees Equal Pay Act OSHA-division of the Department of Labor (sets and enforces work-related health and safety rules) Ask students to list three responsibilities that employers have for employees. Then ask students to list three responsibilities employees have to the employer. Copyright © Texas Education Agency, 2011. All rights reserved

Business’ Responsibility to Society EPA (Environmental Protection Agency) Saving energy Recycling Conflict of Interest-when a business is tempted to put profits before social welfare Copyright © Texas Education Agency, 2011. All rights reserved

Adapting to Current Markets Meeting the challenges of international competition Overcoming economic conditions Adjusting to changing government demands Adjusting the workforce to different economic conditions Ask students to list one international, economic, governmental, and workforce challenge facing businesses in today’s changing marketplace. Copyright © Texas Education Agency, 2011. All rights reserved