Chapter+1+-+Characteristics+of+Business

==// Business is global. Learning to interact and to be open to different cultures is an absolute necessity. Even if you decide never to work abroad, (international) experience will help you grow through increased confidence and a more open and inquisitive mind. //== -- Laura Buchholtz, GE Medical Systems China

**//__ August 29 __//**
1. Read pages 2 - 13 in the text. 2. Complete the following assignment.


 * Reviewing What You Read** //Answer in complete sentences//
 * 1. What is a business? **
 * 2. In what three activities does every business engage? Explain each activity. **
 * 3. Identify the two major kinds of business. How do they differ? **
 * 4. Business is constantly changing. Identify three ways business has changed in the last 10 years and explain the factor(s) that lead to each change. **
 * 5. In determining if they are doing the right things and doing those things well, businesses consider what two things? Explain each term. **
 * 6. Explain three techniques that American businesses can use to improve efficiiency and productivity. **


 * Exercise:**

1. Read "Business Innovation" on page 12 in the text. Answer questions.

**//__ August 30 __//**

 * 1.** Read [|"What is Globalization?"]
 * 2.** Answer the following questions:
 * a. What is globalization? **
 * b. Is globalization a new concept? If so, why is it now an effective method for business to use? If it is not a new concept, how was globaliztion used before? **
 * c. What developments in the past several decades have spurred **
 * d. Why is globalization controversial? **


 * 3**. Do Analyze Information on page 25.
 * 4.** Analyze the following information on GDP.



"//Current-dollar GDP Current-dollar GDP -- the market value of the nation's output of goods and services -- increased 3.7 percent, or $135.0 billion, in the first quarter to a level of $15,006.4 billion. In the fourth quarter, current-dollar GDP increased 3.5 percent, or $126.3 billion//."
 * What is the U.S. Current-dollar GDP?**
 * $15,006,400,000,000**

Current dollar estimates are expressed in current prices. Chained dollar (real) estimates are adjusted for inflation using the price index for gross domestic purchases. The BEA press release explains, "//The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased 1.3 percent in the third quarter, 0.1 percentage point less than the second estimate; this index increased 0.5 percent in the second quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 0.3 percent in the third quarter, compared with an increase of 0.8 percent in the second//.” Much of the price index for GDP change in Q1 was energy prices.


 * //Can you determine the U.S. per capita GDP? HINT: Divide the U.S. GDP by the U.S. population - $15 trillion divided by 312 million. The answer is . . .// **

2009 || //(billions)// || Per Capita GDP || Note the significant differences between the regions.
 * = Figure 2: U.S. Regional GDP and Regional Per Capita GDP
 * Region || Regional GDP
 * **U.S. Total** || **$12.90** || **$42,031** ||
 * **Northeast** || **$0.71** || **$48,964** ||
 * **Mideast** || **$2.32** || **$48,405** ||
 * **Great Lakes** || **$1.81** || **$38,856** ||
 * **Plains** || **$0.85** || **$41,649** ||
 * **Southeast** || **$2.85** || **$36,719** ||
 * **Southwest** || **$1.50** || **$40,408** ||
 * **Rocky Mountains** || **$0.45** || **$41,361** ||
 * **Far West** || **$2.42** || **$46,511** ||

U.S. real gross domestic product increased at an annual rate of 1.8 percent in the first quarter of 2011. Real GDP had increased by a total of 2.9 percent in 2010, and had increased at an annualized rate over 3 percent in Q4 of 2010. In addition, the U.S. unemployment rate remains very high, at 8.8 percent in March, 2011. U.S. economic growth has slowed. **// Is the recovery in jeopardy? //** As evidenced by the rates of GDP growth in the various states (figure 3), the pace of economic recovery varies greatly from one area to another. Several states - especially in the Far West, Great Lakes and Southeast regions - continued to lose GDP in 2009. Several other regions - especially some Rocky Mountain and Plains states - grew at robust rates. Keep an eye on the later estimates of real GDP growth for 2011 Q1 (released in May and June) for a more accurate picture of U.S. economic growth and recovery.

1. Table 2 of the BEA’s April 28, 2011, real GDP estimates is a detailed breakdown of the data by sector and specific types of goods and services, investments, and trade, from 2007 through Q1 2011.

Go to Table 2 at: [|www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp1q11_adv.pdf]

Take a good look at the data. ** What are the areas of growth and decline? Was the data (growth rates) consistent throughout the period of time? Summarize your interpretation of the data in Table 2. **

2. Go to the BEA April 27, 2011, Table 7, "Percent Change From Preceding Period in Real Gross Domestic Product ." You can use this page to look at changes in GDP over any selected period of time. Try looking at the changes over the years since you were born. ** Summarize your findings. **

[|www.bea.gov/newsreleases/national/gdp/2011/pdf/gdp1q11_adv.pdf]

Lesson adapted from []

**//__ August 31 and September 1 __//**
Go to [|Global Factors Influency Business Strategy] for information on your task.
 * Activity:**