Tuesday, September 28, 2010

Would yuan appreciation solve the US trade deficit?



In the past week, we've seen increased rhetoric from the United States about China's managed floating exchange rate. Many politicians seem to believe that letting the yuan rise significantly against the US dollar would solve the US trade deficit problem and result in more jobs for American workers. I think they significantly underestimate the damage such an appreciation would cause to the economy in terms of imported inflation and declines in standard of living for Americans.

Last week, the spokeswoman for the Chinese Foreign Ministry Jiang Yu said that yuan appreciation would not improve the US trade deficit and that the Sino-U.S. trade imbalance was a result of the international division of labor rather than exchange rate fluctuations.

Do you agree with her? What might this statement have to do with the J-Curve effect we learned about today?

Monday, September 13, 2010

Reading eyes



We are about to enter a unit on human resources. A good human resources manager is to be able to communicate well and empathize with others. Reading facial expressions is a very valuable skill in this regard. Click here to go to a test to find out how well you read people's emotions through their eyes. Women generally do better than men - how well can you do it?

Friday, September 10, 2010

Muhammad Yunus and Social Businesses

We've been discussing different kinds of business structures in Grade 10, but one type of structure that is definitely on the rise, but not fully recognized is social business. Social businesses often make a profit, but their goal is not profit maximization. Often, though, not always, the profit made is reinvested into the social business to try to extend its impact.

A great example of a social business model is micro-credit. Micro-credit involves granting small loans to entrepreneurs in communities underserved, or not served at all, by the traditional banking industry. The loans help fledgling businesses get started or expand and can make a real difference in alleviating poverty. One of the most well-known micro-credit lenders is called the Grameen Bank. Its founder is Muhammad Yunus and he has recently written a book called "Building Social Businesses." If you want to watch a video documentary about the impact of microloans on the poor, click here.

Friday, September 3, 2010

I Scream for Ice Cream!

Here in Germany it is very difficult to find good ice cream. Occasionally, you find decent home-made ice cream in parlors like Dulce in Frankfurt. But most parlors don't make their own and their ice creams are loaded with artificial flavors and colors. The same is true for grocery store ice cream. In the last 10 years I've lived in Switzerland and Germany, I have longed for those all-natural popsicles and ice creams I found in (some) stores in the US. I think the ice cream situation has improved a lot there even since I left!

Recently, I read about a small, artisan ice cream maker in Ohio named Jeni. Hers is an inspiring entrepreneurial story. If I weren't teaching, this is what I would be doing here in Germany. There's a niche to be filled!