1. International Business Global Economics Welcome to Summer 2015 schmidt-bremen.de -> Internat.Bus@UNCW Prof. Dr. Peter Schmidt

2. WHY study International Business / Economics ? What‘s it about ?

3. UNCW - HSB

4. Environment Business Economics Micro- / Macro international intercultural interesting aspects for business

5. Introductions... u Economics u Lecturer u Students

6. Whish list / “learning targets”  Ask questions / find them!  Discuss these from different viewpoints  Learn about possible answers  Learn that there normally is not the one answer in social sciences  … Especially not in intercultural environments  Develop (more) interest in following the current political debates – which?

7. Your Whish list u…u…

9. Economics & Statistics ZEW Zentrum für Europäische Wirtschaftsforschung - Mannheim Peter Schmidt Who am I market. research. culture schmidt-bremen.de -> Internat.Bus@UNCW

10. You … uare highly motivated students uare invited to participate in the teamwork- tasks uare encouraged to suggest own topics / questions about current economic policy unow please start your first teamwork task … uOne transparency about your principles uA second one providing your OWN example for the principles

11. (10) Principles of Economics

12. Every field of study has its own terminology Mathematics axioms integrals vector spaces Psychology ego id cognitive dissonance Law torts venues Promissory estoppel

13. Every field of study has its own terminology Economics Supply Demand Elasticity Consumer Surplus Comparative advantage Opportunity cost Deadweight loss

14. Economics trains you to.... uThink in terms of alternatives. uEvaluate the cost of individual and social choices. uExamine and understand how certain events and issues are related.

15. The Economist as a Scientist The economic way of thinking... uInvolves thinking analytically and objectively. uMakes use of the scientific method.

16. The Scientific Method uUses abstract models to help explain how a complex, real world operates. uDevelops theories, collects, and analyzes data to prove (or dismiss) the theories. Observation, Theory and More Observation!

17. Ten Principles of Economics Chapter 1 Copyright © 2001 by Harcourt, Inc. All rights reserved. Requests for permission to make copies of any part of the work should be mailed to: Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777.

18. A household and an economy face many decisions: uWho will work? uWhat goods and how many of them should be produced? uWhat resources should be used in production? uAt what price should the goods be sold?

19. Society and Scarce Resources: The management of society’s resources is important because resources are scarce.

20. Scarcity...... means that society has limited resources and therefore cannot produce all the goods and services people wish to have.

21. Economics Economics is the study of how society manages its scarce resources.

22. Economists study... uHow people make decisions. uHow people interact with each other. uThe forces and trends that affect the economy as a whole.

23. Ten Principles of Economics 1.People face tradeoffs. 2.The cost of something is what you give up to get it. 3.Rational people think at the margin. 4.People respond to incentives. I How People Make Decisions 5.Trade can make everyone better off. 6.Markets are usually a good way to organize economic activity. 7.Governments can sometimes improve market outcomes. 8.The standard of living depends on a country’s production. 9.Prices rise when the government prints too much money. 10.Society faces a short-run tradeoff between inflation and unemployment. II How People Interact III How the Economy as a Whole Works

24. Ten Principles of Economics 1.People face tradeoffs. 2.The cost of something is what you give up to get it. 3.Rational people think at the margin. 4.People respond to incentives. I How People Make Decisions

25. 5.Trade can make everyone better off. 6.Markets are usually a good way to organize economic activity. 7.Governments can sometimes improve market outcomes. II How People Interact Ten Principles of Economics

26. 8.The standard of living depends on a country’s production. 9.Prices rise when the government prints too much money. 10.Society faces a short-run tradeoff between inflation and unemployment. III How the Economy as a Whole Works

27. And always remember … People face tradeoffs ! “There is no such thing as a free lunch!”