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February 28, 2010

US economy at a crossroads

Filed under: Economics — Tags: , , , — Paul Clark @ 6:52 pm

The US economy expanded at a faster rate than  first believed. According to the US Commerce Department, the economy grew 5.9% in the fouth quarter of 2009, revised upwards from the previous estmate of 5.7%. This represented the biggest improvement in the economy for six years. However, this good news was offset by other, less encouraging, economic results. Unemployment data was worse than expected, showing  an increase of 496,000 when seasonally adjusted. In addition,  there was evidence that the recovery in the housing market is faltering with sales falling to the lowest level since June 2006, and consumption growth was revised down  to 1.7% from the original 2% figure.  Economists expressed their concern that the US market faces a double dip recession as the effects of the Government fiscal stimulus diminishes.

photo: The TruthAbout

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Still shocking after all these years

Filed under: TOK — Tags: , , — Paul Clark @ 6:19 pm

Nearly 50 years after Yale professor Stanley Milgram conducted his seminal social psychology experiment in obedience using his famous electro-shock generator, the experiment has been repeated in a very modern context   – reality television. Milgram’s experiment was an attempt to understand why previously normal Germans could have acted so immorally in supporting the actions of the Nazi regime. Was it a purely German phenomenon or  was it a general human trait that would be replicated  across other nationalities and ethnic groups? Are humans socialised into merely following orders from people assumed to be in authority? Milgram’s experiment in the USA and then in many other countries appeared to show that humans simply learn to comply with authority figures, and that humans worldwide would commit attrocious acts under pressured circumstances, pleading  duress.

Reality television is seeking ever more extreme ways of ritual humiliation – always trying to find that extra ‘edge’. Perhaps this is why contestants in a ‘pilot’ for a supposedly new French reality show were probably not surprised by the expectation that they inflict pain on others. The extent of the demands, however, were shocking.  People were asked to inflict electric shocks on a  fellow contestant in response to incorrect answers to memorised questions. Eighty per cent of  the 80 participants ignored the pleading of the fellow contestant to stop the shocks admid wails of pain, when told to continue by the TV presenter, Tania Young. They were prepared to increase the voltage to a point that was labelled as ‘extreme shock’.

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Technology in the Economics and Business Classrooms

Filed under: Business & Management,Economics — Tags: , , , , — Peter Anthony @ 3:27 am

Technology offers various innovative ways to transform teaching and learning in the economics classroom.  The applications described below can make learning more interactive and connect students to the real world outside the classroom walls.  Over the coming posts, further details will be provided as to how you can use each of these tools in your classroom.

Triple A Interactive Text on Moodle

·      Provides explanations, analysis, theories, self-test questions, examples and descriptions with pop-up windows to give further details and diagrams

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February 26, 2010

Hummer finally runs out of gas

Filed under: Business & Management — Tags: , , , , , — Paul Clark @ 12:52 pm

Photo: Bah Humbug

The Hummer, favourites of the stars such as Arnold Schwarzenegger, is dying a rather slow, lingering death unlike the instant mayhem created by some of its celebrity owners. Its simple – times are a changing! You are more likely to see Arnie driving the latest Prius model  than an elongated version of the Hummer   … although following the recent revelations about sticking accelerators and faulty brakes, that may be a more dangerous activity than facing The Terminator.

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Asia recovers from Global slump, but West remains in the doldrums.

Filed under: Economics — Tags: , , , — Paul Clark @ 1:08 am

World trade is beginning to recover from the devastation of  2009. Trade volumes increased by 1.1% in November 2009 over October, but these figures mask the imbalance between different global markets. Indeed, the boost in trade resulted almost entirely from a 5% surge in import volumes from emerging markets. Western markets remained depressed, with  flat or negative growth in trade volumes. The pick up in trade in Asia came largely from trade between Asian economies. However, eastbound container traffic from Europe to Asia surged by 47% in December 2009 as Asian countries sucked in raw materials, such as paper and plastics,  to feed their recovering domestic industries .

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Bernanke steadies Wall Street

Filed under: Economics — Tags: , — Paul Clark @ 12:47 am

Photo: Gage Skidmore.

The Chairman of the Federal Reserve broke a two-day slide on US stock markets by announcing that federal funds target rate was likely to remain “exceptionally low for an extended period” as inflation levels remain low. The federal funds target rate is the rate at which the central bank wants US banks to lend to each other, and so sets a marker for lending to individuals and firms. The Directors of the Fed insisted that no interest rate increase was imminent despite raising its discount rate last week   – the  the rate at which banks borrow emergency, short-term from the Fed to 0.75%.

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February 22, 2010

Sour grapes?

Filed under: Business & Management — Tags: , , , , — Paul Clark @ 10:37 pm

How important is a brand? Traditionally, it is considered that brands add value to the worth of a business and the products it sells. However, there is a row going on between critics of the French wine industry, who believe that French wines should be sold by the grape variety and wine purists, who argue vehemently that each French wine is the unique, resulting from the combination of a microclimate, the local soil and the human inspiration of the vintner.They believe there is an assault  on traditional French wine labels which include the region, district and vineyard. Indeed, France has few big, branded wines, but has tens of thousands of others produced by small vineyards. Conversely, New World producers pool their resources to make wines known by the grape variety — such as Merlot, Pinot Noir or Cabernet Sauvignon, produced by huge companies such as Jacob’s Creek. This provides advantages of economies of scale in production and marketing.

Resistance to change appears to be waning after what Le Figaro described as France’s annus horribilis. However, French wines are losing sales to their New World rivals with France’s share of the global wine market falling from 51 per cent in 1990 to 34 per cent last year.Champagne, Bordeaux and Burgundy all recorded big falls. Exports of wines and spirits, France’s third-biggest foreign currency earner after aircraft and cosmetics, fell 16.6 per cent in value to €7.7 billion in 2009, according to figures released by the Federation of French Wine and Spirits Exporters.

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February 21, 2010

A podcast a day keeps the examiner away.

Filed under: Business & Management,Economics — Tags: — Paul Clark @ 7:13 pm

Podcasting is an excellent way to keep up with economics and business news. Sources of podcasts abound – most large media sites will offer a relevant podcast if you look for one. However a particularly superb source of short, but intelligent and snappy podcasts is the BBC World Service. They produce podcasts that last from 10 – 15 minutes and the topics are updated daily with the older podcasts archived and searchable. Downloads are also free. Topics are at just the right level for an IB programme and cover global issues. You can subscibe for free using the RSS link and download to your computer, iPhone or MP3 player. Have a listen to one or two, and see how they could be part of a lesson or homework assignment.

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Olympics 4: slogans and implications

Filed under: TOK meets global citizenship — Tags: , , , , , , — Eileen Dombrowski @ 12:08 am

“Own the Podium.” Was it a moment of intense testosterone that generated this slogan? Or was it a meeting of bureaucrats, reducing sporting ideals and the pursuit of excellence to “measurable outcomes”? Does brilliance in winter sports really come down to a count of the medals?

Interconnected with the BELIEVE ad campaign on which I commented just before the Olympics opened, the Canadian sports programme called Own the Podium brought together federal, provincial, and territorial governments, sports organizations providing programs and services, and corporate sponsors to formulate very concrete goals announced on their website:
• Place first in the total medal count at the 2010 Olympic Winter Games
• Place in the top three in the gold medal count at the 2010 Paralympic Winter Games

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February 20, 2010

Olympics 3: oops!

Filed under: TOK meets global citizenship — Tags: , , , — Eileen Dombrowski @ 11:32 pm

Legs thrusting, blades slicing, the speed skaters hurtle over the ice.  Both men in this matched pair are racing fiercely, both intensely wanting to qualify for the next round of the medal competition.  I can hardly stand disappointment to come to either of them.  “I want them both to win,” I cry to my husband.  And they do.  They both qualify at the end of the heat, bumping our Canadian out of medal contention.

My husband turns to me balefully.  “Now look what you’ve done.”

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