Wage Determination

Who, What, Why: How could Reebok sell trainers for $1?

The answer

• High volume with very slim profit margins
• Locally sourced materials and labour
• There are no guarantees of breaking even - a pilot in Bangladesh made losses
• But it's a social venture and the company stands to establish a foothold in a big market

Great resources to help with learning the theory on Labour Markets

A PowerPoint that includes basics plus a decent overview of Econ. Rent and Transfer Earnings.

http://www.google.co.uk/url?sa=t&rct=j&q=Key+factors+in+UK+Labour+supply&source=web&cd=9&ved=0CGMQFjAI&url=http%3A%2F%2Fwww.bized.co.uk%2Fsites%2Fbized%2Ffiles%2Fdocs%2Flabmarket1.ppt&ei=K1LPTq22E8Lt8QPJy-39Dw&usg=AFQjCNEoQ1W5Vqq3br3vu5h2BhwA9vgcJQ&sig2=9MvgW84RAlPDC8rZWgB_NA

Supply of Labour

http://tutor2u.net/economics/revision-notes/a2-micro-supply-of-labour.html

Price Ceilings

http://www.youtube.com/watch?v=L9P-_OdT1vg&feature=related

Division of Labour

http://www.youtube.com/watch?v=icz0IImeKis

Exchange : http://www.youtube.com/watch?v=8JbiY2gnja0&feature=related

Employment - The Labour Market

Specialisation

Specialisation in action!

Exchange, possibly????

Market Failure - Smoking (From Bryn's Blog)

Unit 1: Market failure from smoking


A nice video and article from the BBC
a) What sort of market failure is occuring?

b) To what extent do you think providing information on the dangers of in car smoking would reduce people doing it and reduce the market failure?

c) To what extent do you think banning in car smoking would reduce people doing it and reduce the market failure