Wednesday, June 4, 2014

reflection

Even though I have not decided if am studying abroad next spring, this class was a great eye opener to the different economies around the world.  With our focus on a specific country for the entire quarter, it really helped me see how a market other than the US's works.  Besides our individual focus on a country, the class delved into how markets work together around the world.  Some specific things we learned about that i think have been most directly applicable to understanding how the world works are supply and demand, arbitrage, GDP, and transportation.
After this class, I am more interested in learning about tourism and its immense effect on economies, developed or undeveloped.  The reading about tourism's effect on Pomegranate in Turkey really stuck with me.  I don't think very many tourists think much about how their spending abroad is affecting the country's tourist industry and economy as a whole.  In many places, such as Mexico, tourism is a huge source of national income.
I think the most challenging thing for me next year will first be deciding if I am going to study abroad.  If I do, I will be participating in the three month program in Madrid, Spain.  If I end up studying abroad,  I think the most challenging thing for me will be coping with the distance from home and lack of immediate contact with my friends and family.  I think I also will be a bit overwhelmed with the change in currency, scenery, and social etiquette:  the expected culture shock of arriving in a new country.

Thursday, May 22, 2014

City Analysis: London

London falls at the very top of the hierarchy of Central Places.  With a population of over 7 million people,  London has no equals among its UK peers in the other 200 largess towns, cities, and districts.  Being the UK's capital, this can be expected.  London is the most populous, urban zone and metropolitan area in the country.  Being a leading global city with strengths in arts, commerce, education (including 43 universities, making it the most concentrated center of higher education), entertainment, finance, healthcare, professional services, research, tourism, and many more, London is one of the world's top financial centers with the 5th largest metropolitan area GDP in the world.

London is followed by other bigger cities in the UK such as Birmingham, Leeds, and Glasgow.  Birmingham has a population of just over 1 million, which Leeds and Glasgow follow with populations of about 727,000 and 616,500.

London offers a variety of things that would not normally be available in a smaller place.  Being the largest city in the UK, there isn't much that cannot be found there.  Being a large center for business, London offers numerous choices for higher education that could not be found in many other places.  Although other places in the UK, such as Edinburgh, are home to universities, London offers more than enough choices that contribute to the large population, many of which are students.  London is also home to the UK's center of government, Parliament, which finds its home in the Palace of Westminster in the center of London off of the River Thames.  London is also the UK's most visited city, contributing to its massive tourism industry.
London is a national metropolis and is not missing anything in particular, simply because of its massive size.  Though, it may be seen as missing some cultural things, such as the game of American football and a team to follow.

Tuesday, May 20, 2014

"Why are house prices rising so quickly?"

http://www.telegraph.co.uk/finance/personalfinance/houseprices/10840228/Why-are-house-prices-rising-so-quickly.html


Within the past five weeks, house sellers in England have added nearly 10,000 GBP to their asking prices.  This is the largest monthly increase on record.  Asking prices for homes in both Wales and England have increased by 3.65 (by 9,409 GBP) from April 6th to May 10th.  This large increase means that for the month of May, the average property for sale is priced at a record high of 272,003 GBP.  The supply of new properties for sale is continuing to struggle with keeping up with the high demand.  Across the UK, London's housing market has inflated the prices by 16.3% through the year to date, adding an extra 80,000 GBP.  In the rest of the country, the increase remains at a modest 4.9%.

We have recently discussed Urban models in class.  In this example, I see that the prices in the central business district are the prices that have risen exponentially.  Due to the lack of houses on the market, sellers are able to increase their prices, knowing that families are desperate to jump on a house that they see.  In these cases, I think that upper middle-class families will be looking to live in the city.  This is largely in part that they are the people that will be able to afford the rising housing prices.  We have also  discussed in class that when the supply is low, prices of a good will go up.  With the high demand for houses and low number of sellers, the situation accurately describes a supply and demand model.

The fall in number of new sellers is said to be largely blamed on the high number of bank holidays over the last month, encouraging people to take a holiday rather than sell their home.  Britain does not have enough housing to meet the demand of its ever growing population.  The Government's Help To Buy Scheme allows first-time buyers and home movers to borrow up to 20% of the property valued with a 5% deposit and interest-free first five years.  This has increased the number of first-time buyers by 24%.  This huge growth feeds through the rest of the property market, fueling demand.

Monday, May 12, 2014

"Junkyard Planet" by Adam Minter

Although India and China are both rapidly industrializing countries with a large demand for resources, the vast majority of US scrap metal goes to China.  The distribution of scrap metal around the work is ultimately decided by the price of shipping and the level of demand.  China, being a top exporter of products to the West Coast of the United States, has a much more desperate demand for scrap metal than India has.  In addition to the lack of demand, US companies will always choose to export scrap to the country with the cheapest shipping rate.  Although companies in India long for an opportunity to buy and ship scrap from the US, it is a strong knowledge that no matter what, US scrapyards will rarely ever make a deal with India due to the higher cost of shipping.

A passage in this reading that illustrates a larger issue or problem related to globalization is a passage from page 88, and is also briefly discussed on page 92.  The passage, "alas, there is a problem:  China prohibits the import of scrap beverage cans due to concerns about the health and safety implications of importing the residue of old six-packs", (88) brings awareness to deterrents of worldwide trade.  When there are conflicts between countries, often times there will be some parameters that may restrict certain acts of globalization.  The example given in the chapter touches on the ban of scrap-metal shipments from the US to Japan.  The ban was lifted in 1950 after the decade long restriction.  A different type of ban is that some countries have restrictions on importing certain items due to environmental or safety/health concerns.  As mentioned above, China is concerned that the importing of scrap beverage cans is a hazard to health and safety due to the residue.  Certain restrictions and bans may not cross a person's mind right away; I know they did not enter mine until this reading.  Often times, these bans will make it difficult for countries to import certain items that could be of use to them, and it also affects the countries that are trying to export these items.

Modern transportation relates to the themes raised by Jared Diamond in my previous blog post: "Why Did Human History Unfold Differently on Different Continents for the Last 13,000 Years?".  As previously discussed, certain continents have advantages due to the types of crops and domesticated animals they have.  This is attributed to whether or not the continent is east/west or north/south.  North/south orientation limits the crops and animals from migrating in different directions due to the difference in climates.  If countries or continents have the means and location to develop transportation or means of trade, they will thrive and advance.  Certain countries that are located in a disadvantageous area, such as Brazil or Argentina, have less of an advantage when it comes to worldwide trade.  Their coastlines are easterly and therefore are faced away from the common route through the Pacific ocean.

Thursday, May 8, 2014

"The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" by Marc Levinson

One particular discussion in this reading that I found remarkable was the amount of thought and organization that lies behind the way that containers are placed on the ship.  I never really thought about how much thought should be put into organization based on the types of items within each container.  Levinson explains, "they have ensured that the refrigerated containers are placed in bays with electrical hookups, and that containers with hazardous contents are apart from containers that could increase the risk of explosion," (page 6).  It is remarkable how a computer system is able to process all the information that is needed to organize the containers correctly.  Such a fast and efficient process can only be attributed to the huge advances in technology.

Levinson sees the development of the shipping container as essential to globalization.  Containers save time and lower the cost of shipping around the world.  The efficiency of the way that containers are organized and shipped saves lots of time.  Containers have allowed countries to feel much more comfortable with making purchases from another country if a good is at a more reasonable price than within their own country.  The distance between countries is no longer an issue due to the low cost and quick process.

On page 3, Levinson points out that consumers win due to the fact that there are "infinitely more choices thanks to the global trade the container has stimulated".  A loss from the transformation of global transportation is that the consumers who are workers are part of the competition of employers who seek the cheapest labor.  Producers of small and local goods are at a loss by the end of the twentieth century.  When consumers are given more choices worldwide, local goods do not seem as appealing.  On the other hand, large, multinational manufacturers win in containerization because their business is able to expand internationally.

Monday, May 5, 2014

"Growth reported in Scottish businesses' oil supply work"

Date:  May 4, 2014

http://www.bbc.com/news/uk-scotland-scotland-business-27277038

This article elaborates on the fact that Scottish-based support companies are now doing the majority of their business abroad.  Specifically, "export sales from Scotland's oil and gas supply chain grew to 10 billion pounds in 2013".  This represents and increase of 22% from the previous year.  Scottish Enterprise saw a steady growth in the importance of international contracts from 2002 to to 2013, resulting in almost a 20% increase in sales.  Demand for oil and gas has grown across the globe.  The increase in Scotland's expertise over the past forty years has shown through their rise in exportation in this area.
In class we have discussed multiple examples of things that could lead to an increase or decrease in both supply and demand.   One such things is increased technology and resources.  We have also discussed imports and exports among the world.  Many countries will often import items from other countries when the supply is high, this makes it cheaper for the importing country, which would ultimately lead to the massive increase in exports sales of Scotland's oil and gas supply chain.
What led to an increase in Scotland's exports of oil and gas is most probably due to the increase in technology available to the distributors and companies.  An increase in the supply of oil in Scotland leads to the increase in demand from other countries.  The increase in exports will increase net exports, increasing Scotland's GDP.

Thursday, May 1, 2014

UK Transportation

Water Transportation
  • The Port of Felixstowe in Felixstowe, Suffolk is the UK's busiest container port that deals with over 40% of Britain's containerized trade.  With a 1.4 mile quay, it was ranked Europe's sixth busiest container port (35th in the world) in 2011.
  • The Port of London along the banks of the River Thames to the North sea is the UK's second largest port.  This port handles cruise liners, ferries, and cargo of all types (coal, timber, containers, paper, vehicles, etc.).  The port stretches along the Thames and has numerous individual wharfs, docks, and terminals.
  • The Port of Southampton is a major passenger and cargo port with four cruise terminals.  It is the busiest cruise terminal and second largest container port in the UK.

Besides these three major ports, the UK has many ocean ports.  This is as to be expected due to the fact that Great Britain is an island surrounded by the North Sea and North Atlantic Ocean.


Land Transportation

Currently, freight rail traffic is low compared to historic levels, but it is growing.  In 2011/12, rail freight transported almost 102 million tonnes of goods worth over 30 billion pounds.  There are four main freight operating companies in the UK.  DB Schenker is the largest.  Goods that are transported are things such as coal, food&drink, steel, timber, vehicles, construction materials, and waste.

Passenger rail services in Great Britain are divided into regional franchises run by private companies.  Due to the fact that it is offset from the island of Great Britain, Northern Ireland is not included in the railways of the UK.  High speed and West Coast Main Lines run up into Glasgow and Edinburgh, Scotland.  In 2010, there were 1.33 billion journeys on the passenger rails in the UK.

In the UK, vehicles drive on the left.  With an extensive road network, highways extend into Wales, Scotland, and all throughout England.  There are about 30,000 miles of main roads, over 2,000 miles of motorways and over 200,000 miles of paved roads.

Air Transportation

There are many regional and international airports in the UK.  London Heathrow Airport is one of the busiest international airports in the world.  More than half of all air passengers in the UK travel via the five London area airports.  Manchester Airport is the largest and busiest of the remaining airports outside of London.
Regional airports have experienced lots of growth recently due to the lower-cost airlines over the last ten years.  Air travel is the most popular mode of transportation for visitors both coming to the UK and traveling within the UK.

The international airports are seen with a red logo, domestic airports are seen with a white logo:


Monday, April 21, 2014

International Data of the UK


      1)  International trade is huge in the UK.  Exporting nearly £32 billion of exports to the U.S., £28 billion to Germany, and £19 billion to both France and the Netherlands, the UK lies within the top ten exporting countries in the world.  The UK’s biggest export in 2011 was nuclear reactors, boilers, machinery and mechanical appliances.  Mineral fuels, mineral oils, and products of their distillation came in second, followed by vehicles and their parts and accessories.  In general, the UK exports manufactured goods, fuel, chemicals, food, beverages, and tobacco.  In 2013, total UK exports were valued at about £283.2 billion ($475.7 billion).

The following diagram shows the exports of the UK, with the top ten exported products aligned in order on the bottom of the diagram.



The top trade partners for imports to the UK are Germany, China, the Netherlands, and the U.S.. Germany is the source for 12.6% of imports, China 8%, the Netherlands 7.5%, and the U.S. 6.7%.  The UK imports manufactured goods, machinery, fuels, and crops/foodstuffs.  In 2013, total UK imports were valued at about £384.5 billion ($646 billion).


2)  The currency in the UK is the British Pound (GBP or £).  The current exchange rate in the UK is 1 GBP = 1.68 USD.  In most recent exchange rate history, the rate is currently the highest it has been in the past 180 days, which hit April 16, 2014.  The lowest in the last 180 days was about 1 GBP = 1.589 USD November 12, 2013.  The average exchange rate is normally 1 GBP = 1.646 USD.


3)  The most current refugee statistics (from 2012) and their country of origin are:

15,132 (Somalia)                                 9,842 (Afghanistan)
12,155 (Zimbabwe)                             5,752 (Iraq)
11,428 (Iran)                                       9,901 (Eritrea)

Under international refugee law, a refugee is defined as a person who seeks refuge in a foreign country because of war and violence, or out of fear of persecution.  Refugees seek protection under the United Nations 1951 Refugee Convention, or from member states of the European Union.  This exercises of the EU’s “Four Freedoms”.  Since 1994, the number of people migrating to the UK has been greater than the number emigrating.  In 2012, immigration into the UK was 497,000 and emigration was 321,000.  This is a net migration of 176,000.  In most recent estimates, net migration has risen to an annual average of 201,000.  Most immigrants come to the UK from other EU countries (32%) and non-EU countries (52%), leaving 16% of people migrating to the UK as British nationals.  Most immigrants to the UK come from China, India, Poland, the U.S., and Australia.


4)  The UK maintains good relationships with mostly every country.  The UK’s relationship with both Iraq and China can be seen as controversial and/or complicated, but close.  Present British policy maintains that the relationship with the United States represents their “most important bilateral relationship” and vice versa.  Historically, UK forces have invaded, had some control over, or fought conflicts in 171 of the world’s 193 countries that are now United Nations member states.  Well known wars that the UK has taken part in are the Seven Years’ War, the War of 1812, WWI, WWII, the Korean War, the Gulf War, the War in Afghanistan, and the Iraq War.  Currently, there are no big conflicts that the UK is involved in.  




www.parliament.uk/.../sn06077.pdf

Wednesday, April 16, 2014

A Fez of the Heart: Travels around Turkey in Search of a Hat

One quote that struck me in this reading reads, "Turkey did not seem to exist in Pomegranate that morning" (page 8).  The immense takeover of tourism in Pomegranate seemed to have caused the Turkish culture to disappear.  Although things like authentic Turkish food and souvenirs continued to exists for visitors to purchase, the locals began to deny their past.  Things such as the Turkish national headress, a fez, were forbidden for locals to wear.  There was only one man that Seal could find wearing a fez.  Seal's account of his conversation with the man made it clear that it was okay for tourists to wear a fez, but not in "normal life" could Turkish residents wear them simply because they they were not seen as modern.  The many changes that came with the tourism industry in Pomegranate caused the loss of the Turkish culture.

Seal's explanations of the changes in Pomegranate make it very clear that there is a big interaction between economics and culture.  The mass amounts of money brought in from tourists caused the locals to become accustomed to certain ways of life that the tourists brought in.  Food, music, and language was all adapted to that of the tourists.  One huge example is that of nudity.  When Europeans began to visit Pomegranate, their nudity along the beaches caused outrage and disrespect to the locals.  Culturally, nudity was unheard of, let alone a woman showing the bottom half of their legs.  Once the locals accepted that tourism brought in capital, they started to embrace what would positively affect their businesses.  Postcards of nude women were sold at stands near the beach.  Sales were the priority in Pomegranate, and the locals adapted to changes in order succeed in the economic side of life.

Having visited Cancun, Mexico over spring break this year, I noticed a huge conflict between tourism, culture, and economics.  First of all, being a huge resort hub for mass amounts of tourists, resorts, bars, clubs, and stores all accepted U.S. dollars.  In addition, I did not come across one Mexican employee at our resort that did not speak English.  The restaurants, buffets, and beach grilles all served burgers, fries, and chicken fingers, all while playing popular American songs on their stereo systems.  All of these things are exactly what our culture is in the U.S.  Although all of these things were of huge convenience to my group of friends, I was somewhat disappointed with the lack of Mexican culture that I experienced.  I would have enjoyed more authentic Mexican food, music, and the Spanish language.  Though many people take excursions to go visit ruins in Mexico, it is also known to be dangerous to venture outside of your resort.  We went downtown to Señor Frogs one night.  I thought maybe I would see more culture this way. There were street vendors and the like, but I still only encountered the English language and U.S. currency.  I chose to make use of the Spanish that I know by occasionally speaking to the employees at our resort, as well as in the airport, in their native language.  For me, it was not only fun, but it also gave me a little sense of their culture.

Friday, April 11, 2014

Tourism in the UK


The tourism industry in the UK brings in just above 29 million tourists each year.  This makes the UK the 8th biggest tourist destination in the world.  Foreign tourists spent $17.2 billion in the UK in 2011.  VisitBritain, an online website containing data by the British Tourist Authority, states that the United States is the UK’s most valuable inbound market.  However, 21.5 million European visitors overwhelm the 2.1 million American and Canadian visitors.  Summer months, specifically August, are the most traveled months for tourists in the UK.  Domestic tourism remains the biggest component to UK travel.  Statistics from 2009 show that domestic tourists spend £21,881 million among 126 million trips that were made by tourists.

Big portions of the major tourist attractions in the UK are in England.  About 5.8 million tourists visit a castle, 5 million tourists visit historical houses, and 6.4 million tourists visit religious buildings or monuments.  One extremely visited tourist attraction is the Tower of London.  The Tower of London is a historical castle on the River Thames in central London.  Two more main attractions in London are Buckingham Palace and “Big Ben”.  Big Ben is the nickname for the clock tower on the north end of the Palace of Westminster.  

Big Ben

Tower of London

Buckingham Palace


There are 15 national parks throughout the UK. There are 10 in England, 2 in Scotland, and 3 in Wales.  The biggest national park in the UK is Cairngorms in Scotland. 

Cairngorms-Scotland

The UK is extremely rich in biodiversity.  The UK contains a variety of mammals, birds, reptiles, amphibians, insects, and fish. 
      

The top five visited museums in the UK are in Great Britain.  The British Museum, Tate Modern, National Gallery, and Natural History Museum all took in over 5 million visitors in 2013.  The V&A museum in South Kensington took in just over 3.2 visitors.  The British museum is dedicated to human history and culture.  The permanent collection in the museum consists of roughly 8 million pieces of work.  This is among the largest collections in the world, originating from all continents.

The British Museum


Google Images