The Corovavirus Trade-Off. Economic Growth Or Human Life?

IB Economics. Policymakers and politicians have an unenviable decision to make. The longer their economies are totally shut down because of social distancing, implemented to combat the coronavirus, the more they stagnate, the higher the rates of unemployment and the greater likelihood that businesses, once closed down, will never open up again.  In other words, the economic damage rises exponentially as time goes by. How long can we go on with our economies totally closed down? They face a classic trade-off, similar to the trade-off found in a Production Possibility Frontier:- If they want to stop the virus from spreading, … Continue reading The Corovavirus Trade-Off. Economic Growth Or Human Life?

Amazonian Rainforest Fires.

I.B. Economics. The recent Amazonian fires here in Brazil and their potential impact on global warming got me thinking about the role of economics, and how economic theories and models may be complicit in the process of environmental destruction and global warming. Do our models factor in the environmental impacts of economic activity, or do they ignore them? Many analysts think that they ignore them and that new ways of thinking about the role of the economy and it’s connection to the environment are needed. One of these analysts is John Fullerton, an ex-Wall Street banker who has founded the … Continue reading Amazonian Rainforest Fires.

Brazil’s Labour Laws Reformed.

IB Business & IB Economics. For the first time since 1945, as from today, November the 11th, 2017, new labour laws come into force in Brazil. The new laws have been welcomed by the business community, who feel that the laws bring Brazil’s labour market into the 21st century, but many, including  the Trade Unions and the poor, have protested against the changes. In economic language these types of changes are often referred to as ‘ making the labour market more flexible’. In economics it is an example of a ‘ market based supply side policy’ the aim of which … Continue reading Brazil’s Labour Laws Reformed.

Business Internal Assessment (SL) – It’s All In the Secondary Data, Stupid!

I.B. BUSINESS. Unlike the HL internal assessment in IB business, which emphasises collecting primary data,  the emphasis in the SL internal assessment is on collecting secondary data. Primary data is data that you collect yourself, using interviews, surveys, questionnaires etc.  Secondary data is data that someone else has already collected or assembled for you. Examples are business reports, articles in the news media, information on company websites and Annual Reports. For this reason, the SL internal assessment is quicker and easier to do, because you have the data all there at your fingers tips, as it were. Here is the … Continue reading Business Internal Assessment (SL) – It’s All In the Secondary Data, Stupid!

Executive Pay and Donald Trump.

IB BUSINESS & MANAGEMENT AND IB ECONOMICS. From ‘Brexit’, to the election of Donald Trump as US president, a number of recent world events have surprised and shocked many people. Can we link anything on the IB Economics and IB Business & Management syllabuses to these profound changes in politics, society and economics? Can business and economics explain anything about these happenings? Of course it can! Let’s look first at executive pay (Section 2.4 of the Business syllabus, salaries and remuneration) . As Ha-Joon Chang points out in his masterly book “23 Things They Don’t Tell You About Capitalism“, the salaries … Continue reading Executive Pay and Donald Trump.