Business Essay: Economics

Business Essay: Economics

So much can be said about both business and economics. A blogger does even know where to start. Perhaps, a rational essay with the aim of discussing the subject is the best way to look at this matter, so… The purpose of the present essay is to briefly discuss business and economics.

Another exciting major available to commerce and business students is economics. However, care must be taken in choosing this particular program, since economists may encounter less job openings upon graduation than, for instance, accountants or marketers. Still, economists may pursue careers in academia, or perhaps in international organizations such as the IMF (International Monetary Fund).

Thus, economics is a social science dealing with the problematic allocation of limited resources given unlimited human wants. Further, economics branches out into microeconomics and macroeconomics. Related fields include finance and econometrics. Microeconomics focuses on individual economic behavior and that of the firm, while macroeconomics looks at larger scale economic events, such as countries’ economies, or very large corporations. A recent, and fairly unpopular among scholars, new development has been mesoeconomics, a term used to describe concepts which fail to fall under either the microeconomics or macroeconomics umbrellas.

Digital Art Illusion of Movement Animation Optical Illusion Cause Keyframes. The age of a woman doesn’t mean a thing. The best tunes are played on the oldest fiddles. (Ralph Waldo Emerson)

Girl sitting on ornamental chairs. Image: Elena.

Further, normative economics prescribes what should be done, and may stem from personal opinions or political convictions, whereas factual economics focuses on what actually is. Economics rests on assumptions such as ceteris paribus – Latin for “other things being equal”.

One of the better known foundamental concepts of this theoretical body of knowledge describes economic equilibrium. Simply put, economic equilibrium is reached by the market when producers (suppliers) and consumers (buyers) “agree” on a price and quantity. Adam Smith continues to be considered the founding father of economics, with several economic theoretical constructs outlined in his book The Wealth of Nations, while Keynesian economics represent an alternative school of thought pioneered by John Maynard Keynes. Thus, the aim of the present brief paper was to express some known basic facts about economics, as they apply to the business world.

Economic Factors

Economic Factors

Strategy and organization are recurrent concepts in business. Strategic and organization management are important disciplines among modern business studies. The abbreviation C2 in organizational literature stands for ‘command and control’. A replacement for the term has been proposed due to repressive connotations. Naturally, as any society, the workplace has its mores, norms and rules. The implications of the anxiety or uncertainty management theory in the workplace behaviour have been examined (Thau, 2008). The interviewers found that situational uncertainty, as well as authoritarian management style, mediated organizational deviance.

Since the advent of the new millennium, positive psychology and related phenomena have flooded the media. Youssef & Luthans (2007) have tested the interrelationship of psychological constructs such as hope, optimism and resilience and work happiness, job satisfaction and organizational commitment, and found that the two sets were correlated and moved in the same direction. However, the authors caution that the study has some limitations and jumping to simplistic conclusions is unwarranted.

During recessions, unemployment tends to go up. Demand and supply shocks also affect the economy. The most talked about financial crises are the Wall Street Crash (1929), Black Monday (1987), the Asian Financial Crisis (1997-98), and the subprime mortgage crisis (2008). Although all sensed the repercussions of market brutality, the last of these was felt differently depending on where one lived.

There were also minor market crashes and many corrections. None have been as severe as the stock market crash precipitating the economic hardships of the 1930s. Interestingly, Agarwal et al. (2009) asserts that macroeconomic theory is poorly suited to analyse the crisis, because of the homogeneity of methods of production assumption.

It is virtually impossible to compete in today’s global economy without a college degree. (Bobby Scott). Illustration by Megan Jorgensen (Elena)

Internet, globalization and outsourcing have emphasized the role that international markets, trade and news play in an economic analysis. Growing up, many children and teenagers are dreaming of one day being involved in international business. The idea of travelling, a distinguished hobby, meeting new interesting people and being paid for it, is indeed appealing. Exports and imports enter in the gross domestic product (GDP) formula calculation together with government spending, investment, and consumption.

Naturally, domestic factors such as money supply and interest rates also matter. These are regulated by the central banks, European Central Bank (ECB) for the European Union, Bank of Canada, the Federal Reserve System and Banco de México for North America. Investment is usually understood as a sum of money or something of value that is injected into some organization or project in the hope of one day reaping the benefits. In contradistinction, as a GDP variable, investment means capital injected by companies doing business. Banking is an old profession started by European jewellers. Commercial banks are different than central banks. Commercial banks hold 80% of all US banks assets, while the rest lies with credit unions and savings institutions (Klein & Newman, 2006). Morrison & Wilhelm (2007) provide the following data. The CPI-adjusted capitalization of top 10 investment banks raised overtime. The CPI consumer price index, is designed to measure inflation and out of a 100. So, the figure went from $1 billion in 1960 to 194 billion in 2000. The number of skilled employees during the same period went from 56, 000 to 205,000.

In addition to investment banking, big corporations also determine some of the outcomes of the economy. Public companies raise capital by issuing shares. Reports state that $355.3 billion in securities sales were underwritten during the quartet from 1980 to 1984. The author proceeds that “of that total value, 24 percent is common stock, 5 percent is preferred stock, 2 percent is convertible preferred stock, 63 percent is debt and 6 percent is convertible debt” (Smith, 1986; p. 3).

Another interesting topic useful in business is game theory, usually offered as course by the Economics department. The class covers ideological constructs such as the famous prisoner’s dilemma (PD), the dominated strategy, trust, communication and the price and production regulating Nash equilibrium.

References:

•     Agarwal, R., Barney, J. B., Foss, N. J. & Klein, P.G. (2009). Heterogeneous resources and the financial crisis: Implications of strategic management theory. Center for Strategic Management and Globalization, Working paper No. 6: 1-35.
•     Klein, G. D. & Newman, C. M. (2006). Call from peerless bank: A case consideration of telemarketing and ethics. Journal of the International Academy for Case Studies, 12 (3): 103-120.
•     Morrison, A. D. & Wilhelm, W. J. Jr (2007). Investment banking: Past, present and future. Journal of Applied Corporate Finance, 19 (1): 8-20.
•     Smith, C. W. (1986). Investment banking and the capital acquisition process. Journal of Financial Economics, 15: 3-29.
•     Thau, S., Bennett, R. J., Mitchell, M. S. & Marrs, M. B. (2008). How management style moderates the relationship between abusive supervision and workplace deviance: An uncertainty management theory perspective. Management Department Faculty Publications, 1-15.
•     Youssef, C. M. & Luthans, F. (2007). Positive organizational behaviour in the workplace: The impact of hope, optimism and resilience. Journal of Management, 33 (5): 774-800.

Ghost Story

Ghost Story

By John Grant

It’s not till we’re back on dry land that I think of phoning home. I glance at my watch and find it’s just a few minutes before six. Dverna probably won’t be home yet – most days she stays on late at the school, marking papers or supervising clubs, ans it’s especially likely tonight that she’ll stay on, knowing I won’t be home for hours. She doesn’t carry a mobile, so the only number I have to phone is the landline Even so, I give it a try.

No answer.

I’m tempted to stay overnight in London. I feel I should face Connor and Elsa, try to explain to them that really I’m not the cad they must thing I am – even though Lindsay has told me they don’t think about it like that. Because, you see, they too don’t know I’m married. So far as they’re concerned it’s just fine their darling daughter is getting it together with someone they’ve know all his life. Of course, perhaps said daughter shouldn’t have got herself knocked up by him in the interim, but modern days modern ways… So Lindsay says. How they’re going to feel about me when she tells them the new Lindsay is the craziest fool in the world for believing my obisous lies. What whoppers I’ve been telling. Land her in the pudding club, then pretend it was my mysterious Evil Twin…

I should be with her, so we face the music together. But I also need to be with Dverna. If I could speak to her on the phone, maybe it’d be different, but she has to have the option of deciding whether or not I go home to bristol tonight.

Ghost Story, Photo by Elena

I explain something of this to Lindsay. As we stand there, the light beginning to fade from the sky, I see a young guy who’s passing helping himself to an eyeful of her. It’s far from the first time it’s happened today. She is exquisite, a jewel cut by a master craftsman, just as she was when she was five. And I think to myself yet again how very easy it would be, if things were different… But things aren’t different. I’ve never felt that each of us has only one soulmate out there in the world. If anything were ever to happen to Dverna, I wouldn’t resign myself to never finding someone else to whom I’d feel equally close. But I cannont figure Lindsay as a soulmate. I love her in that almost-family way. I think she is beautiful, and wonderful, and amazing, and I’m fascinated by her presence the way I’d be fascinated by the over-brightness of a jewel automation, and the streak of lust I have for her right now is like a guitar string being tightened too far, but she’s not the person I’m meant to spend the rest of my life with.

None of this do I say. Instead I say, “What are you going to tell your parents this evening?”

“Nothing.”

“They’ll be wanting to know, won’t they?”

“They respect my privacy, I respect theirs.”

“Like I can believe that.”

She gives my hand a squeeze. We’re approaching the bright lights and the noise of Marble Arch. “Do believe me,” she says.

Science Fiction and Fantasy 2015, edited by Rich Horton, Prime Books, 2015.

I Can See Right Through You

I Can See Right Through You

By Kelly Link

Meggie finds the dmon lover with Pilar. She says, « Can we talk? »

« What about? » he says.

Pilar says, « I’ll go get another beer, Want one Meggie? »

Meggie shakes her head and Pilar wanders off, her hand brushing against the demon lover’s hip as she goes. Fles against flesh. He turns just a little so he’s facing away from the firelight.

« It’s about the pilot for next season, » Meggie says. « I want to shoot it in Venice Beach, in our old bungalow. »

The demon lover feels something rush over him. Pour into his ears, flood down his throat. He can’t think of what to say. He has been thinking about Ray while he flirts with Pilar. He’s been wondering what would happen if he asked Meggie about Ray. Really, they’ve never talked about this. This thing that she does.

« I’d like you to be in the episode too, of course, » Meggie says.

I Can See Right Through You. Photo by Elena

He says, « I don’t think that’s a good idea. I think it’s a terrible idea, actually. »

« It’s something I’ve always wanted to do, » Meggie says. « I think it would be good for both of us. »

« Something something closure,” he says. « Yeah, yeah. Something something exposure something possible jail term. Are you insane? »

« Look, » Meggie says, « I’ve already talked to the woman who lives there now. She’s never experienced anything Will, I need to do this. »

« Of course she hasn’t experienced anything, » the demonn lover says. « It wasn’t the house that was haunted. »

His blood is spiky with adrenaline. He looks around to see if anyone is watching. Of course they are. But everyone else is far away enugh that the conversation is almost private. He’s surprised Meggie didn’t spring this on him on camera. Think of the drama. The conflict. The ratings.

« You believe in this stuff, » he says, finally. Trying to find what will persuade her. « So wht won’t you leave it alone? » You know what happened. We know what happened. You know what the story is. Why the fuck do you need to know more? » He’s whispering now.

« Because every time we’re together, she’s here with us, » Meggie says. « Didn’t you know that? She’s here now. Don’t you feel her? »

Hair stands up on his legs, his arms, the ack of his neck. His mouth is dry, his tongue sticks to the roof of his mouth. « No, » he says. « I don’t. »

Meggie says, « You know I would be careful, Will. I would never do anything to hurt you. And it doesn’t work like that, anyway. » She leans in close, says very quietly, « It isn’t about us. This is for me. I just want to talk to her. I just want her to go away. »

Science Fiction and Fantasy 2015, edited by Rich Horton, Prime Books, 2015.

Transparency. Photo by Elena

Celebrity Gossips

Celebrity Gossips

Interest in celebrities is a well-known psychological phenomenon. Even though regular gossip, while looked unfavorably upon, has always been popular, gossip about stars and other famous personalities is even more so. Television shows such as Gossip Girl, Websites such as Perez Hilton, Celebrity Gossip and others, are just a few examples of the phenomenon.

But from a psychological viewpoint, why is it that people are so interested in the life of others? And then, why especially of more successful others? Is it catharsis? Is it a hope that traits would somehow be transferred onto those discussing the matters? Or is it simply entertainment? Probably, a little bit of all the above, with an added sense of participating in glamorous lifestyles through talking about them.

Although admission criteria vary, a typical runway model will be over 5 feet 8 inches (1.72 meters) tall and thin. A clear complexion and beautiful facial features are similarly a requirement in most agencies. Image: Copyright © Megan Jorgensen.

So which celebrities are the most popular when it comes to juicy stories? In 2011, to judge by gossipers’ focus, these appear to be actress Lindsay Lohan, pop singer Justin Bieber and, of course, Lady Gaga. Now, this is not to say that other stars fail to attract the limelight, but in showbiz, there appears to be an insensitive ‘flavor of the month’ quality, which means certain people seem the most interesting at a particular point in time. Below is a list of stars that are often discussed in online communities:

Adriana Lima: Famous for being a Brazilian supermodel and one of Victoria’s Secret Angels, together with Alessandra Ambrosio, Gisele Bundchen, Anna Kurkova, Chanel Iman, Laetitia Casta, Heidi Klum and others. Probably the most famous of this group are Brazilian supermodel of German origin Gisele Bundchen, and German top model Heidi Klum. Both leggy beauties have since diverged into lucrative fashion and television undertakings, in other ways than modeling per se. In addition, Gisele Bundchen formed a family with football player Tom Brady, while Heidi Klum with rocker Seal.

An artist’s rendering of a supermodel. Image: Megan Jorgensen (Elena).

Charlie Sheen: Charlie Sheen, born Carlos Irwin Estevez, comes form a family of actors (together with father Martin Sheen and brother Emilio Estevez, who is likewise a film director). He had a prolific career, playing in such hits as the Wall Street motion pictures and Major League. He was also the protagonist of sitcom Two And A Half Men, of the set of which he has most likely been fired for his personal troubled track. The actor was replaced by younger model, actor and philanthropist Ashton Kutcher. Ashton Kutcher, who at the time of the replacement was still married to Demi Moore, is rumored to have cheated on his wife, a betrayal Bruce Willis (her ex-husband and star of Die Hard) did not take kindly to.

Justin Bieber: Justing Bieber is a singer, very popular among teenage girls. In 2011, his girlfriend Selena Gomez was put in unthinkable situations by his avid fans, showing the dark side of dating someone that so many people dream of. In that same year, the Canadian youth performed the ‘Santa Claus is Coming to Town’ song for the Artur Christmas movie (an animated adventure in 3D). A Christmas gift to so many, one assumes. Further, rocker Ozzy Osbourne, who was the lead vocals for British rock formation Black Sabbath, hosted reality TV series and countless events and wrote a self-help book, has surprisingly said not to know the musical newcomer in an interview a few years back to the animation’s release date.

Lady Gaga: Stefani Joanne Angelina Germanotta, also known as Lady Gaga and self-proclaimed Mother Monster, is a talented popular singer, even more famous for her provocative outfits, than her music. She appeared out of nowhere with her success ‘Just Dance’ and immediately knew worldwide fame. Being a true avant-garde in fashion, she has been seen wearing telephones on her head, metal and meat dresses, and unfit for travel latex uniforms. Naturally, the meat dress got her a lot of reprimand form PETA (the organization fighting for animal rights) and vegans, vegetarians and, more generally, concerned animal sympathizers.

How do models stay so thin? Image: Megan Jorgensen (Elena).

Lindsay Lohan: Lindsay Lohan is a beautiful American actress, who has proven to look good in any hair color… and she has tried them all (blonde, dirty blonde, sandy blonde, brunette, redhead, jade black hair, etc.). The beauty has blue green eyes and aside from her role as the gun licking nun – The Sister – in Machete (by Quentin Tarantino’s long time friend Robert Rodriguez and Ethan Maniquis), is best known for her personal and societal troubles. She is openly bisexual, having dated both men and women (for example, DJ Samantha Ronson). Another public persona that often makes the news for what might be called ‘all the wrong reasons’ is Tila Tequila, also known as Miss Tila. Interestingly, the TV personality and artist actually has a blog on celebrity gossip.

Un groupe de vedettes. Photo : Megan Jorgensen (Elena).