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.
Wednesday, June 4, 2014
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.
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.
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.
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.
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.
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
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.
- 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:
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