This technical note explores one of the most important topics for firms and their managers: labor. In particular, how many people should a firm hire, and how much should they be paid? The note uses the example of Wail Al-Hayani, the owner of a kitchen that provides fresh prepared food to quick-service restaurants, to explore hiring decisions and setting wages and salaries-and the marginal values that matter. If Al-Hayani hires more workers, it would mean extra output and revenue, so long as the value of the marginal product of labor exceeds the wage. To maximize profits, a competitive firm should hire workers up to the point where the value of the marginal product of labor equals the wage.

This technical note prepares students to use and analyze economic models of long-run growth. The technical note is particularly useful in introduction the Solow neoclassical growth model for discussing growth in emerging markets and developed economies.

The nine months leading up to April 2009 were among the most difficult and uncertain in U.S. economic history. A series of destabilizing events had led to substantial uncertainty and panic throughout the economy: Three of the five largest U.S. investment banks had failed, the stock market had fallen by 40%, the Fed had doubled its balance sheet, and the federal budget deficit had expanded to well over $1 trillion. Moreover, the crisis had spread from the United States to the world's leading economies and seemed to signal the beginning of an extraordinary rebalancing of the world economy. This case explores the challenge facing the U.S. economy in spring 2009, the global economic forces and trends affecting the economy, and the likely course of key macroeconomic variables: real and nominal interest rates, exchange rates, GDP growth, inflation and budget deficits.

This technical note introduces the basic structure of the IS\LM and AS\AD models for a closed economy (i.e., one that does not engage in international trade). It is a useful complement for the more in-depth presentation of these models commonly found in an economics textbook.

This case details cement, ready-mix, and concrete giant CEMEX's consideration of a set of strategies designed to grow the Mexican market from the bottom of the economic pyramid: the low-income do-it-yourself homebuilders that characterized an untapped market there. Alfredo de Armas, VP of business development at CEMEX, must consider the needs and limitations of customers with no access to credit and a budget that might allow a purchase of just one bag of cement per week. What would it take to reach that market? Would doing so be profitable?

This technical note discusses the practice of angel investing, particularly its meaning and suitability to emerging markets. Adapted from a chapter in An Executive Briefing on Angel Investing in Latin America (Batten Institute), this note focuses on business in Latin America, but the discussion and the relationships discussed are relevant and perfectly suitable to discussions of early-stage finance and entrepreneurship in all emerging economies. Additionally, the note explores the role of angel investors and venture capitalists on entrepreneurial activity and economic development.

This note defines and discusses the measurement of corruption, describes corruption's principal effects on firms and societies, and discusses its relevance of to managers and to the efforts of firms to promote higher living standards throughout the world.

Despite years of social and political turmoil, Israel's high-tech industry had managed to flourish. Although the economic growth rate was satisfactory by 2004, the nation's unemployment rate was still high, the national debt remained a troublesome risk, and the economy seemed far to reliant on public spending. Could a country such as Israel really become one of the richest countries in the world? This case explores the context for Israel's successes and challenges.