An Economics Novel?

Economics is hard for me to grasp most of the time. However, my economics class introduced me to a novel about economics and free trade. It’s titled, The Choice, by Russell Roberts. This book has helped me learn more about economics while keeping me entertained.

The book is about the ghost of the nineteenth-century economist, David Ricardo. While in heaven, David Ricardo is observing how a television manufacturer, Ed Johnson, is pushing for protectionism of American industries by putting restrictions on free trade. David Ricardo is sent down to show Ed what the world would be like without free trade (kind of like the story of It’s a Wonderful Life).

As the story progresses, we see the United States as it is today with innovation and new industries. However, the story also shows what life would be if the U.S. had limited trade. According to economic theory, trade benefits everyone by improving our standard of living. Trade allows us to buy products at lower prices. The main point of the book is to dispel the horrible misconception that America is being harmed by foreign industries. When it comes to free trade, people think there is some sort of competition among countries. This is a false belief.

John Maynard Keynes said that a country should specialize in certain products and services. When each country specializes, production can increase. Through trade, everyone can have more goods at a lower price. So why is there so many people against free trade and protectionism?

Many people who push for protectionism (tariffs, quotas, subsidies) think they are protecting American jobs. It’s true that when foreign industries sell in America, some jobs may be lost in the short-run. Just look at how the Japanese car industry has changed the domestic car industry. While the case for protectionism may seem beneficial, it may harm us in the long run. Economists say that that allowing free trade will cut jobs in one area; however, when jobs are lost in one sector, new jobs and industries can emerge. Innovation can occur and people will work to acquire the proper skills to fill those jobs. Free trade is necessary for growth of the United States.

There are many other factors in economics that influence free trade. I highly recommend The Choice anyone who wants to understand more about this issue.

Measuring Success

When you think of successful people in the business world, you might think of a CEO or a Wall Street investor. You might also think about the power and wealth that these people possess. Just like these people, you want to be successful and enjoy power, wealth, and the “easy life.” However, being “successful” usually isn’t easy. Some of the most successful people have spent countless hours studying and working to get to the top. Even when they’re at the top, they still work stressfully long hours (70 to 80 hours per week). But all this hard work yields outstanding rewards.

To obtain success, you need a strategy. John M. Brausch of the Institute of Management Accountants wrote, “Success is all about getting your strategy right, working smarter not harder, and managing the risks that come along with growth.” He also suggested to look at your past successes, explain why you were successful, and create a strategy to duplicate that success in the future (Brausch).

My friend who is an electrical engineer said, “You can’t improve what you do not measure. When you measure your success, you always find things you would do different or improve. Take a moment to look back on your success and ask yourself if you could produce the same results today. If not, find a way to improve and hone your skills that you may be successful with everything you aspire to do.

Brausch, John M. “Managing for Success.” Strategic Finance. April 2010. Pg.6

Five Traits Employers Look for According to Me

Campbell Scientific Incorporated is a manufacturing company that builds instruments to measure the weather. Their mission statement consists of four elements. It reads that they are committed to workmanship, quality, service, and improvement. These traits can be likened to the skills employers look for when they’re hiring new personnel. I will discuss these four traits and add a fifth, which is enthusiasm.

Workmanship is the product of effort and endeavor.

When you think of workmanship, you might think of the work done by a builder or craftsperson. Examples of excellent workmanship can be seen in the sculptures and paintings of Michelangelo. Michelangelo painstakingly put minute details into all of his paintings and sculptures, and his work is admired to the present day. Think about how you approach a job at hand. Do you put full heart and effort into the project, or do you put in the bare minimum? As you prepare to enter the work force, remember to always have good “workmanship.” This means to always endeavor to put time and effort into your job.

Quality refers to the character of being superior, or a grade of excellence.

Good workmanship leads to quality, which is the second trait. Knowledge and education is vital to providing quality work. When you gain the right skills, you will be a valuable asset to the company for which you work for because you will you will be able to work efficiently, therefore giving you the ability to incorporate quality into your work.

Service is the act of helpful activity.

Always remember to be helpful to people. Employers will admire those who are willing to help out in anyway they can. When you show service in a business, you help resolve someone else’s concerns and help them with their work.

Improvement means to make more useful, profitable, or valuable.

When you interview for a job, there may be skills that you are not completely comfortable with. Show the employer that you are willing to improve your skills while you work for his or her company.

Enthusiasm means to have a lively interest or pursuit.

There is an old saying that says that part of the key to happiness is to wake up and go to a job that you enjoy. Employers will notice and admire you if you have enthusiasm for the job for which you are applying. Enthusiasm increases productivity and motivates other people.

Definitions taken from www.dictionary.com

Listening and Communication

I’ve heard that you only retain 20 percent of what you hear. So maybe if you hear something five times you’ll be at 100 percent! Unfortunately, I don’t think many lecturers, orators, or teachers want to be stuck on one subject for days. Instead it is up to you, the listener, to extract as much knowledge from a speaker as possible.

Sometimes it is easy to listen to a speaker because you are genuinely interested in what they’re saying. For example, it’s easy for me to listen to others talk about the NCAA basketball tournament because I love basketball. However, if people talk to me about economics it will be harder to keep my attention. Listening is difficult when you are distracted or you’re just not interested in what the speaker has to say. I had a professor who told his students, “Even if you aren’t interested my class, at least pretend that you are listening. Those who pretend they’re listening will do better.” I’ve actually used this strategy for some of my “less intriguing” classes, and I must say I believe I got better grades out of those classes for pretending to listen. However, pretending to listen doesn’t cut it when important situations arise and you know you should pay more attention.

Listening skills are important to the communication process, and can be the difference between success and failure in a business setting. For example, salesmen and saleswomen need to listen to customers for their request for goods and services. Employees of a business need to listen to managers for instruction and training. Managers need to listen to employees for feedback. Really listening to what people have to say makes things sail along more smoothly.

The next time you listen to someone, ask yourself if you’re really listening and not just hearing words. After all, the first thing we’re taught as children is to stop, look, and listen. Although these are instructions for crossing a street, it also applies to communication. When you are listening to someone, stop your thoughts and limit your distractions. Look at the speaker and give him or her your undivided attention. Finally, really listen by understanding the feelings, opinions, and point-of-view of the speaker.

"Seek first to understand, then to be understood."

Stephen R. Covey

7 Habits of Highly Effective People

Cover Letters!

Do you really need a cover letter when you submit your resume? According to Sarah E. Needleman of the Wall Street Journal thinks so. She says, "applicants who take the time to craft a cover letter stand a fair chance at setting themselves apart. And given the stiff competition for jobs these days, career experts say writing an introductory note may be worth the effort, especially for career-changers and individuals whose resumes show a red flag, such as employment gap."

I'd never heard of a cover letter until recently, but I can see the benefits of writing one. Instead of just submitting a resume filled with data and facts, you should write a cover letter to accompany it so you'll stand out to an employer. A cover letter allows you to speak and "sell yourself" before meeting a potential employer face-to-face. Consider a cover letter to be an ice-breaker and a head start on an interview. Sarah E. Needleman also stated, "cover letters are ideal for clearing up anything in a resume that might confuse or concern recruiters."

Cover letters should be brief and focus on how your strengths and skills apply to the job you want. Make sure you proofread your cover letter before attaching it to your resume. Sarah E. Needleman quoted an employer, Ms. Shanahan, who looks at cover letters. Ms. Shanahan says, "Sloppiness can automatically eliminate an applicant from consideration. The person's resume and credentials would have to be really outstanding to compensate, and many recruiters may not look past the cover letter to make that assessment."

You need a cover letter to persuade an employer to hire you. I'm convinced that a well written cover letter allows you to stand out. All you need to do is take the time to write one for each specific job you apply for.

Business and Movies

The Oscars are this weekend and I’m excited to see which movies will win. I really enjoyed Avatar and Sherlock Holmes. I like to go to the theater to watch movies and I also like to buy movies to watch on DVD. The movie industry is big business. According to Strategic Finance magazine, the major studios spend an average of $72 million to produce and $37 million to promote. This magazine also showed how movies revenue has changed over the years.

Until the 1970s, consumers could only watch movies in theaters, attend film festivals, or wait until the movie was released to one of the major television networks (ABC, NBC, or CBS). Then videotapes (VHS) were invented which started to change the revenue streams for movies. Today movies make revenues from DVDs, pay-per-view, premium pay channels, and television license revenue. Recently the Internet has provided downloadable movies.

This article was directed toward management accountants to help them understand the lifecycle costs and revenues in knowledge-based industries such as motion pictures. I liked this article because it shows how an industry can change over time. The movie industry took advantage of new technologies to maximize their profits. I believe that for business people to succeed, they need to understand their industry. Business people also need to be able to anticipate and adapt to changes that will inevitably happen over time.

Young, Mark S. “The Business of Making Money with Movies.” Strategic Finance. February 2010. Pg 35-40.

Google Docs

I recently learned how to use Google Documents, and it’s amazing. There are so many ways a business could use this website to enhance their communication and their performance. Google docs is a free website that allows you to make documents, spreadsheets, presentation slideshows, and survey forms. The best thing about this site is that it facilitates the sharing of information among large groups of people. Instead of attaching files to emails, people can be invited to view or edit documents within Google docs. This saves people time by not having to send and resend e-mails with attachments.

I found this site useful when working on group projects at school. If I have a collaboration project to write a group paper, I can use Google docs to write my share of the paper while other people write their shares on the same document. I can do this anywhere I have Internet access and I can view the changes and revisions other people make in real-time. To relate this to business let’s say a sales team is working on a sales report. Members of this sales team travel to different parts of the country. They can use Google docs to compile all their information together quickly and efficiently without having to send bits and pieces through e-mail. Instead, all their information appears quickly on the document in Google docs. For more information on how businesses can use Google docs, go to: www.google.com/apps/collaboration.