In-depth Post #3

Progress:

My father and I covered many business topics in the last In-depth lesson. The first was the meaning of economics. By the definition of the Openstax business textbook, economics is the study of how a society uses scarce resources to produce and distribute goods and services. Define Microeconomics in Urdu/Hindi - YouTubeEconomics also monitors and studies how people make decisions that relate to the welfare of global and national economies. This study grouped into two categories, macroeconomics and microeconomics. The external factors in the economy and the environment in which businesses exist are considered macroeconomics. Anything that a company does not influence like politics, consumer behaviour, and inflation are all macroeconomics. Oppositely, microeconomics is the internal forces and individual parts of the economy. Some examples of microeconomic factors include income and consumer equilibrium. 

The next topic we discussed was what role The Bank of Canada serves in our economy and society. The purpose of the crown corporation is to promote the economy and maintain the financial welfare of Canada. They do this through a monetary policy, economic system, and currency management. Note that this small list is only a fraction of the Bank of Canada’s roles. Briefly summarizing each point, a monetary policy retains the value of money by making inflation low, predictable, and stable. The financial system provides central banking services, oversees critical financial market infrastructures, and helps to develop and implement new policies. Lastly, the Bank of Canada manages currency by issuing legal bank notes and ensuring the security of these notes to avoid counterfeit money.

1. What went particularly well during your mentoring sessions?

One particular aspect of our mentorship sessions that went particularly well was communication. I believe this is because my father and I are completely comfortable sharing ideas and thoughts. Our experience being around one another allows us to cover more business topics and dive deeper into the meaning of the business world and how it implicates the stock market. With our efficiency, we usually finish the main points of the mentorship session and have the time to research the items that intrigue me and investigate the subjects he thinks will eventually be beneficial. Not only does our familiarity with each other allow for more in-depth research, but it also makes me want to learn more. My father knows what I like and how I work and learn best. Thanks to this knowledge, his mentoring strategies are catered to suit my needs. As a result, our learning sessions were very engaging and gripping for me, encouraging my learning about the stock market and all of its factors. 

2. What learning challenges emerged?

  • What did you do to hold yourselves accountable for the learning?

My mentorship sessions have been fruitful in terms of the knowledge and information I learned. However, this success has not gone without its struggles. During the last few sessions, I grappled with the visualization of how political, economic, social, and technological factors influence companies and how the stock market changes resulting. Just looking at inflation’s impact on the stock market is confusing on its own. In Canada, the government controls the minimum wage employers pay for their products, which means employers raise costs for their products or services. When they do, it causes a ripple effect that increases the prices of other goods and service providers. This steady rise of prices or inflation spreads to almost every industry and market, including stocks. Inflation negatively influences the stock market by changing the share prices of companies. Now share prices equal the value of a company’s stock, which dips in value due to inflation. With this change in values, shareholders lose more money from their stocks which negatively impacts the profits generated by companies. If you look at inflation as an obstacle slowing the stream of the stock market, comprehension becomes easier. People and companies who rely on the constant flow of the stock market suffer and lose money because of inflation’s ability to strain the stock market.

Despite my previous confusion, I now understand how external factors influence companies and how changes in the stock market occur consequently. This understanding came from the accountability I placed upon myself to properly understand everything taught by my father. So, when I did not understand the earlier concepts, I did my research and asked questions to complete my comprehension. 

3. What three strategies could improve the quality of your mentoring interactions?

Firstly, our sessions are not planned for specific days of the week. My itinerary states to do a mentorship lesson each week that covers business topics relating to the stock market. Since I did not plan out specified dates and times to meet up for our sessions, I have pushed them back a couple of times to focus on other school work instead. Implementing a week-to-week schedule with dates for our mentoring meetups could help us make the most of our time and create a defined structure to hold me accountable. 

Secondly, using informational graphs to demonstrate the rise and downfalls of stocks could help me better understand how different factors can influence the stock market in different ways. For example, a chart showing inflation rates alongside share prices could have helped me understand the indirect relationship between these two business topics. 

Thirdly, studying business is not the most fun or gratifying subject to learn. Another strategy that I think could improve our mentorship interactions is doing projects that include business information but in an exciting way. Booklets and progression-based games that require business information to succeed are great examples of this strategy in use.

Image Source: https://i.ytimg.com/vi/1xVNRneAXYw/maxresdefault.jpg 

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