Although I'm not studying abroad, it was useful to learn about economies around the world. Choosing a specific country allowed me to put a market, other than the one in the US, into perspective. Not only was the focus on the specific country we had chosen, but also how the markets around the world work together. Supply and demand, GDP, and arbitrage were a few of many topics we learned that are applicable in understanding how the world market works.
I'm more interested in learning about immigration. Although my group did our presentation on immigration, there is still so much more to learn about it. The news covers a lot of illegal immigration in the US, but it would be interesting to learn measures taken to control it in other countries (military or border control). Then question arise regarding expatriates: Is their life better now? Did they move to another country willingly? Were they forced to move for work reasons?
I would highly recommend this class to any student, whether they are studying abroad or staying at K. Yes, it is very useful to study your study abroad country in depth before right before you travel there, but as a student that is not studying abroad, it was interesting to simply learn about what goes on in the world. Once your country is chosen, you will learn economic and cultural aspects of a country other than the one you're familiar with.
Thursday, June 6, 2013
Mexico City Gives Immigrant Children a Second Chance
5/30/2013
Article by: Manuel Rueda
Immigration to the US from Mexico is very common now-a-days. Unfortunately, there is a somewhat high chance of that immigrant being illegal. Once found illegally and asked to leave the country, Mexicans are faced with multiple problems when they return to their country. The article explains the story of Reyna Rodriguez who was told to return to Mexico, but had two US born sons to bring with her. Upon their return, she was faced with issues including a smaller house with several other relatives, no job, and difficulty giving her children basic things, like an education or healthcare.
Mexico City has been started a program to help it become more immigrant friendly. It aims to integrate the immigrants into society with education and work. It also aids foreign born children of those deported in receiving Mexican citizenship. Since it launched in 2007, the program has helped over 600 foreign born children receive citizenship. An issue with this program is that it remains in Mexico City. A majority of illegal immigrants from Mexico return to their hometown, not Mexico City.
In class, we only touched on immigration. My group presentation, however, is on immigration so it was easy to relate this article to what I've learned from the presentation. Our presentation focuses on reasons why people immigrate and where they immigrate to. It was clear to Rodriguez had immigrated for more opportunity in the US. It was interesting however to learn of the issues immigrants encounter when deported.
It great to hear that the program in Mexico City has been increasingly helpful to those who return and have trouble getting on their feet. It may be helpful, however, to spread the program to areas in which more immigrants return to. Though it is the powerhouse of Mexico, not many immigrants that are deported return to Mexico City.
http://abcnews.go.com/ABC_Univision/News/mexico-city-immigrant-children-chance/story?id=19262545#.Ua4b4OD5g21
Article by: Manuel Rueda
Immigration to the US from Mexico is very common now-a-days. Unfortunately, there is a somewhat high chance of that immigrant being illegal. Once found illegally and asked to leave the country, Mexicans are faced with multiple problems when they return to their country. The article explains the story of Reyna Rodriguez who was told to return to Mexico, but had two US born sons to bring with her. Upon their return, she was faced with issues including a smaller house with several other relatives, no job, and difficulty giving her children basic things, like an education or healthcare.
Mexico City has been started a program to help it become more immigrant friendly. It aims to integrate the immigrants into society with education and work. It also aids foreign born children of those deported in receiving Mexican citizenship. Since it launched in 2007, the program has helped over 600 foreign born children receive citizenship. An issue with this program is that it remains in Mexico City. A majority of illegal immigrants from Mexico return to their hometown, not Mexico City.
In class, we only touched on immigration. My group presentation, however, is on immigration so it was easy to relate this article to what I've learned from the presentation. Our presentation focuses on reasons why people immigrate and where they immigrate to. It was clear to Rodriguez had immigrated for more opportunity in the US. It was interesting however to learn of the issues immigrants encounter when deported.
It great to hear that the program in Mexico City has been increasingly helpful to those who return and have trouble getting on their feet. It may be helpful, however, to spread the program to areas in which more immigrants return to. Though it is the powerhouse of Mexico, not many immigrants that are deported return to Mexico City.
http://abcnews.go.com/ABC_Univision/News/mexico-city-immigrant-children-chance/story?id=19262545#.Ua4b4OD5g21
Thursday, May 23, 2013
City Analysis
The current population of Mexico City is 8.85 million. Mexico city is not part of any of the 31 states in Mexico, but is considered a federal entity. This federal entity would be a National Metropolis on the hierarchy of Central Places. There are two large regional cities around Mexico City that contain just over one million people in each: Ecatepec de Morelos (1.6 million) and Nezahualcóyotl (1.11 million). Melchor Ocampo (50,000 people) and Tepotzotlán (88,000 people) are towns around Mexico City. The map shown below, from www.citypopulation.de, is of cities and towns indicated by population. The larger and more pink the symbol is (and if it has a black dot) the more populated the location.
http://www.citypopulation.de/php/mexico-mexico.php
Mexico City is home to 21% of the entire country's GDP. Many of the higher income jobs may be found in Mexico City and larger surround areas than in the towns like Melchor Ocampo. Since Mexico City is largest in the entire country of Mexico (and also the largest in North America), there is not much that can't be found. It may be difficult for people to buy freshly picked crops like those in smaller areas, though it is common to see street vendors.
http://www.citypopulation.de/php/mexico-mexico.php
Mexico City is home to 21% of the entire country's GDP. Many of the higher income jobs may be found in Mexico City and larger surround areas than in the towns like Melchor Ocampo. Since Mexico City is largest in the entire country of Mexico (and also the largest in North America), there is not much that can't be found. It may be difficult for people to buy freshly picked crops like those in smaller areas, though it is common to see street vendors.
Vehicle Market Executive
EGT Consulting has examined Mexico as a potential location to expand the motor vehicle market. Firstly, the GDP of Mexico is expected to rise 3.5% within the next year. With this increase in growth, GDP per capita will rise as well. An increase in GDP per capita will in turn allow citizens to afford more. However, the GDP per capita currently is only $15,300. An amount of at least $30,000 is recommended for a four-door sedan, and therefore, motor scooters may be the best fit for Mexico.
On the other hand, in larger cities in which infrastructure is more developed, taxis and buses are more common. Cars are common seen on these roadways as well. Mexico City in particular, is a well developed city and contains most of the wealth in Mexico. With many ports nearby, it would be easy to transport four-door sedans to Mexico City and other developed cities in which infrastructure is well developed.
Tuesday, May 21, 2013
Agricultural fires in Mexico
Source: NASA
Fires have been spotted by NASA in Guerrero, Colimo, Jalisco, Oaxaca, and other areas along the western border of Mexico. Due to the location, it was determined that the fires were set deliberately in order to manage the land where they occurred. The issue with this is that although it helps restore nutrients in the soil, when farmers burn the land, it causes the quality of the air to decrease.
When the crops are burned, the land is enhanced with nutrients to better the growth of crops in the future. However, the quality of the air degrades, which in turn can affect cycles in the environment (water cycle, etc.) that allow the crops to be grown in the first place. This issue applies to the economic concept of National Income (GDP = C + I + G + NX). Major crops such as corn, beans, and fruit that are grown in these areas are common exports. Exports are one of the major sources of income for Mexico. If the crops are being burned, there is a short term loss of income for the country. In the long run, however, the the enhanced soil will allow crops to grow more efficiently and increase the amount able to be exported. More exports increase GDP.
Seasonal changes can cause a lack of growth of the crops. Also, the cycle of burning the crops and allowing them to grow again can be detrimental to the air quality and environmental cycles that rely on the air. To resolve this issue, environmental policies should be set in place. Environmental policies would help protect crops and the air quality. Other options include using fertilizers and other measures to increase crop growth rather than burning the land. Although there are some negative consequences to using fertilizers, they may be seen as less detrimental than burning crops to enhance the land. These policies could not only be beneficial environmentally, but also could better the exports from the country.
Fires have been spotted by NASA in Guerrero, Colimo, Jalisco, Oaxaca, and other areas along the western border of Mexico. Due to the location, it was determined that the fires were set deliberately in order to manage the land where they occurred. The issue with this is that although it helps restore nutrients in the soil, when farmers burn the land, it causes the quality of the air to decrease.
When the crops are burned, the land is enhanced with nutrients to better the growth of crops in the future. However, the quality of the air degrades, which in turn can affect cycles in the environment (water cycle, etc.) that allow the crops to be grown in the first place. This issue applies to the economic concept of National Income (GDP = C + I + G + NX). Major crops such as corn, beans, and fruit that are grown in these areas are common exports. Exports are one of the major sources of income for Mexico. If the crops are being burned, there is a short term loss of income for the country. In the long run, however, the the enhanced soil will allow crops to grow more efficiently and increase the amount able to be exported. More exports increase GDP.
Seasonal changes can cause a lack of growth of the crops. Also, the cycle of burning the crops and allowing them to grow again can be detrimental to the air quality and environmental cycles that rely on the air. To resolve this issue, environmental policies should be set in place. Environmental policies would help protect crops and the air quality. Other options include using fertilizers and other measures to increase crop growth rather than burning the land. Although there are some negative consequences to using fertilizers, they may be seen as less detrimental than burning crops to enhance the land. These policies could not only be beneficial environmentally, but also could better the exports from the country.
Wednesday, May 8, 2013
"The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" by Marc Levinson
1. A selection from this chapter that I found interesting was when Levinson explained how the containers are organized on the ship. Most people would not think about how much thought goes into organizing the containers. "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," (p. 6). With the great amount of containers on these ships, it amazes me how organized they are with them all in such a fast process. The advances in technology contribute greatly to the ability to organize these containers so efficiently.
2. Levinson claims that containers not only saved time, but also lowered cost of shipping. Containers are able to organized quickly and efficiently, saving a lot of time. Therefore, countries feel more comfortable buying from another country that provides a good at a reasonable price, even if it is at a great distance, because time and cost of shipping are low. With that being said, Levinson sees a clear contribution to globalization from "containerization".
3. As Levinson states, consumers win in the sense that there are a wider variety of choices from the global trade made available by containers. However, they are also at a loss because if these consumers are workers, they are part of the competition of employers who seek the cheapest labor. "In 1956, the world was full of small manufacturers selling locally; by the end of the twentieth century, purely local markets for goods of any sort were few and far between." This shows that producers of local goods are at a loss. With the use of containers, consumers receive more choices with worldwide goods. Some producers, though, like large manufacturers, win in this situation because their business can easily spread internationally.
2. Levinson claims that containers not only saved time, but also lowered cost of shipping. Containers are able to organized quickly and efficiently, saving a lot of time. Therefore, countries feel more comfortable buying from another country that provides a good at a reasonable price, even if it is at a great distance, because time and cost of shipping are low. With that being said, Levinson sees a clear contribution to globalization from "containerization".
3. As Levinson states, consumers win in the sense that there are a wider variety of choices from the global trade made available by containers. However, they are also at a loss because if these consumers are workers, they are part of the competition of employers who seek the cheapest labor. "In 1956, the world was full of small manufacturers selling locally; by the end of the twentieth century, purely local markets for goods of any sort were few and far between." This shows that producers of local goods are at a loss. With the use of containers, consumers receive more choices with worldwide goods. Some producers, though, like large manufacturers, win in this situation because their business can easily spread internationally.
(source: Google images)
Tuesday, May 7, 2013
"Obama meets with Mexico's Peña Nieto, vows to boost trade"
Article posted: May 2, 2013
Author: Kristin Deasy
http://www.globalpost.com/dispatch/news/regions/americas/mexico/130502/obama-meets-mexicos-president-pena-nieto-live-video
Barack obama and President Enrique Peña Nieto met in Mexico City this past Thursday. Peña Nieto announced that future measures will be taken in order to increase trade and educational cooperation, and address immigration issues. As of now, US is Mexico's number one economic provider and Mexico is the third largest partner of trade for the US. Therefore, growth in Mexico will mean growth in America. By cooperation between the US and Mexican economies, Peña Nieto claims, "we can make a more productive, a more competitive region,". Educational and social reforms will be made in Mexico as an approach to the growing drug problem of the country. As for immigration, there is a new reform bill currently in the US Congress and Peña Nieto did not make many comments on the issue.
In class, we have discussed the arbitrage opportunity. Mexico has the US as their number one economic provider over many other countries. It may be due to the location of the country and the fact that they are neighboring locations. Transportation wise, railroads, sea ports, and airports of Mexico provide several opportunities for the US to trade easily with them. The ability to trade between the US and Mexico so smoothly will make it easier to increase trade between the two and better the economies of both.
I think the need for increase in trade was to encourage growth of the Mexican economy. However, the topics of immigration and educational reforms were brought into conversation because they have been growing issues of the country. Drug use and immigration both affect the US, so it was crucial for the leaders of both countries to address the issues. I believe educational reforms will have reduce the drug issue in the long run. More education and staying in school will keep children from getting involved with drugs at a lower age and take them down a more positive path than illegal drugs. Education reforms may also allow more opportunities for Mexicans in their own country rather than having to illegally immigrate to the US.
Author: Kristin Deasy
http://www.globalpost.com/dispatch/news/regions/americas/mexico/130502/obama-meets-mexicos-president-pena-nieto-live-video
Barack obama and President Enrique Peña Nieto met in Mexico City this past Thursday. Peña Nieto announced that future measures will be taken in order to increase trade and educational cooperation, and address immigration issues. As of now, US is Mexico's number one economic provider and Mexico is the third largest partner of trade for the US. Therefore, growth in Mexico will mean growth in America. By cooperation between the US and Mexican economies, Peña Nieto claims, "we can make a more productive, a more competitive region,". Educational and social reforms will be made in Mexico as an approach to the growing drug problem of the country. As for immigration, there is a new reform bill currently in the US Congress and Peña Nieto did not make many comments on the issue.
In class, we have discussed the arbitrage opportunity. Mexico has the US as their number one economic provider over many other countries. It may be due to the location of the country and the fact that they are neighboring locations. Transportation wise, railroads, sea ports, and airports of Mexico provide several opportunities for the US to trade easily with them. The ability to trade between the US and Mexico so smoothly will make it easier to increase trade between the two and better the economies of both.
I think the need for increase in trade was to encourage growth of the Mexican economy. However, the topics of immigration and educational reforms were brought into conversation because they have been growing issues of the country. Drug use and immigration both affect the US, so it was crucial for the leaders of both countries to address the issues. I believe educational reforms will have reduce the drug issue in the long run. More education and staying in school will keep children from getting involved with drugs at a lower age and take them down a more positive path than illegal drugs. Education reforms may also allow more opportunities for Mexicans in their own country rather than having to illegally immigrate to the US.
Sunday, May 5, 2013
Transportation
1. One of the largest ocean ports in Mexico is the Port of Veracruz. Made in the beginning of the 20th century, it now brings in over 16.1 million products a year, which makes the port of Veracruz is the oldest and largest port in Mexico.
Other major ports of Mexico include Guaymas, Topolobampo, Mazatlan, Manzanillo, Tampico, and Pajaritos.
2. Passenger rail systems are a popular way of transportation depending on where in Mexico an individual is located. In Mexico City, the STC is the second largest metro system in North America and has 195 ports, 115 of which are completely underground. Other passenger trains in Mexico include Expreso Maya, Chihuahua al Pacifico, and "Tequila Express", all of which are tourist trains. Freight trains include the Ferromax and the Kansas City Southern de Mexico in northeastern Mexico.
The highway and road network in Mexico is like the US in that east/west highways are even numbered and north/south highways are odd numbered. These roads are maintained and created by the federal government in Mexico. Some roads require a toll, though there are less than there are in the US.
Other major ports of Mexico include Guaymas, Topolobampo, Mazatlan, Manzanillo, Tampico, and Pajaritos.
(Port of Veracruz)
2. Passenger rail systems are a popular way of transportation depending on where in Mexico an individual is located. In Mexico City, the STC is the second largest metro system in North America and has 195 ports, 115 of which are completely underground. Other passenger trains in Mexico include Expreso Maya, Chihuahua al Pacifico, and "Tequila Express", all of which are tourist trains. Freight trains include the Ferromax and the Kansas City Southern de Mexico in northeastern Mexico.
The highway and road network in Mexico is like the US in that east/west highways are even numbered and north/south highways are odd numbered. These roads are maintained and created by the federal government in Mexico. Some roads require a toll, though there are less than there are in the US.
(STC Metro)
3. Mexico has about 1,834 airports, ranking 2nd in North America and 3rd in the world. Airports are commonly found in major cities for international tourists like Cancun, Manzanillo, Mexico City, and Oaxaca. The Manzanillo International Airport, as I remember from my travels, was pretty small compared to most. In order to get inside the airport, we exited the plane onto the runway and then made our way inside (something I was not used to by any means coming from most big airports in the US). Some national airports include Zamora National Airport and Nuevo Casas Grandes National Airport.
(Manzanillo Airport)
Tuesday, April 23, 2013
Country Profile: International
1. Exports of Mexico include oil, fruit, vegetables, silver, cotton, coffee, and manufactured goods. About 80% of Mexico's exports go to the US, 3.6% to Canada, and 1.4% to Germany as the three primary countries. In 2010, exports were valued at $303 billion dollars.
Imports of Mexico include electrical equipment, car parts, aircraft parts, steel mill products, and agricultural machinery. 48% of imports come from the US, 13.5% from China, 4.8% from Japan, 4.6% from South Korea, and about 4.1% of imports from Germany. In 2010 imports were valued at $306 billion dollars.
2. Currently 1 Mexican peso is 0.08 of a US dollar ($1.00 in the US is equal to 12.25 pesos in Mexico). In most recent exchange rate history, the rate is currently low compared to the last 5 or 6 months. The highest in the last half a year or so was $1.00 for 13.28 pesos in November 2012.
3. Mexico has a net migration rate of -3.11/1,000 population. Economic issues of Latin American countries has led many immigrants to Mexico. It was found that about 30,000 Argentinians make up Mexico's population. In 2000, the number of foreign born residents was found to be 493,000 with almost 87% of those being from the United States. Most emigrants from Mexico move to the US. Illegal immigrants has been a major issue in the US. In 2007, there were 7 million illegal immigrants from Mexico, but the number dropped to 6.1 million in 2011.
4. Illegal immigration, again, is a major issue between the US and Mexico. US has taken measures to ensure a safe border. However, Mexico also encounters immigrants from Guatemala and other poorer countries seeking work. NAFTA is responsible for the free trade between Mexico, US, and Canada, so although there may be other issues between the countries, trade thrives. Mexico has embassies in many Latin American countries and diplomatic relations with the others.
http://www.economywatch.com/world_economy/mexico/export-import.html
http://www.exchange-rates.org/history/MXN/USD/T
Imports of Mexico include electrical equipment, car parts, aircraft parts, steel mill products, and agricultural machinery. 48% of imports come from the US, 13.5% from China, 4.8% from Japan, 4.6% from South Korea, and about 4.1% of imports from Germany. In 2010 imports were valued at $306 billion dollars.
2. Currently 1 Mexican peso is 0.08 of a US dollar ($1.00 in the US is equal to 12.25 pesos in Mexico). In most recent exchange rate history, the rate is currently low compared to the last 5 or 6 months. The highest in the last half a year or so was $1.00 for 13.28 pesos in November 2012.
3. Mexico has a net migration rate of -3.11/1,000 population. Economic issues of Latin American countries has led many immigrants to Mexico. It was found that about 30,000 Argentinians make up Mexico's population. In 2000, the number of foreign born residents was found to be 493,000 with almost 87% of those being from the United States. Most emigrants from Mexico move to the US. Illegal immigrants has been a major issue in the US. In 2007, there were 7 million illegal immigrants from Mexico, but the number dropped to 6.1 million in 2011.
4. Illegal immigration, again, is a major issue between the US and Mexico. US has taken measures to ensure a safe border. However, Mexico also encounters immigrants from Guatemala and other poorer countries seeking work. NAFTA is responsible for the free trade between Mexico, US, and Canada, so although there may be other issues between the countries, trade thrives. Mexico has embassies in many Latin American countries and diplomatic relations with the others.
http://www.economywatch.com/world_economy/mexico/export-import.html
http://www.exchange-rates.org/history/MXN/USD/T
"Mienten en redes sociales sobre matanza de perros en la capita"
In Mexico, there is one stray dog for every seven citizens. It has become a major health issue and the mayor of Tuxtla Gutierrez, Samuel Toledo Cordova Toledo, has been accused for campaigning to kill the stray dogs. Through social media, the issue blew out of proportion. On twitter, "#ChiapasMataPerros" or "Chiapas Kills Dogs", began trending and brought major attention to the issue. The Department of Health Risks claims the stray dogs have become an increasingly worse problem for the citizens of Tuxtla Gutierrez with 7 cases of rabies; 5 in 2012 and 2 in 2013 so far. Toledo says measures are to be taken to control homeless animals, provide health care to them, and use adoption facilities.
Though this is not your typical economic issue, I think the fact that social networking played a big role in the spread of word about the dogs, is similar to what we have mentioned in class. Technology has become so advanced, that an issue that applies to a single town has spread rapidly and gotten attention worldwide ("#ChiapasMataPerros" was in the top ten trends worldwide on twitter). With world knowledge of the issue, tourism, a major source of income for the entire country, may be affected not only through the accusation of killing the dogs, but also the major health hazard the dogs bring.
The article mentions that this issue may have arisen through lack of attention from past governments. If the growing issue of stray dogs had been brought to the attention of leaders earlier, it may have prevented worldwide attention. Policies that may help this situation include creating regulations of domestic animals as well as controlling homeless animals, providing care, and using adoption facilities, as mentioned above. I believe it would be beneficial to do so before the word spreads like wildfire, which is hard to accomplish with technology nowadays.
I especially think it is beneficial, as councilor Karla Burguete Torrestiana mentioned in the article, to stress the importance of responsible use of internet and social networking.
http://www.noticiasnet.mx/portal/chiapas/general/147862-mienten-redes-sociales-sobre-matanza-perros-capital
Though this is not your typical economic issue, I think the fact that social networking played a big role in the spread of word about the dogs, is similar to what we have mentioned in class. Technology has become so advanced, that an issue that applies to a single town has spread rapidly and gotten attention worldwide ("#ChiapasMataPerros" was in the top ten trends worldwide on twitter). With world knowledge of the issue, tourism, a major source of income for the entire country, may be affected not only through the accusation of killing the dogs, but also the major health hazard the dogs bring.
The article mentions that this issue may have arisen through lack of attention from past governments. If the growing issue of stray dogs had been brought to the attention of leaders earlier, it may have prevented worldwide attention. Policies that may help this situation include creating regulations of domestic animals as well as controlling homeless animals, providing care, and using adoption facilities, as mentioned above. I believe it would be beneficial to do so before the word spreads like wildfire, which is hard to accomplish with technology nowadays.
I especially think it is beneficial, as councilor Karla Burguete Torrestiana mentioned in the article, to stress the importance of responsible use of internet and social networking.
http://www.noticiasnet.mx/portal/chiapas/general/147862-mienten-redes-sociales-sobre-matanza-perros-capital
Thursday, April 18, 2013
Chapter 4: "Information Wants to Be Free"
A passage I found interesting was the quote by Kenneth Arrow in which he states, the "biggest new concept in economics in the last thirty years, is the development of the importance of information, along with the dispersion of information." I found this interesting because in markets today, I feel that technology is taken advantage of. It is hard to imagine not whipping out my iPhone and searching the price of an item I'd like to buy. It is beyond easy to compare prices of the same or similar items on several different websites at once. While in a store, its simple to check if the price of a desired good is less at another location. As Arrow stated, the last thirty years have made these actions easy. Before the fast and easy "dispersion of information" that we are used to today, there were many more costs when it came to finding the best price for a desired good. It took a great amount of time traveling from market to market, comparing prices, whereas today, it takes the click of a button.
According to McMillan, transaction costs refer to what the consumer loses while searching for the item they desire. As mentioned above, time is a big transaction cost or specifically, a search cost. The time spent searching for the item and comparing prices from place to place or vendor to vendor, could be spent doing other things. If one decides to not spend the time searching for the best price or item, they could end up paying way more for the item than they necessarily need to.
Imperfect information can rise to numerous issues. Assuming everyone knows the price of the item at each place it's being sold can lead to sellers underpricing the item. On the other hand, if the seller believes that costumer will not spend time searching for the best price, they are likely able to sell an item at a higher price than other locations. As mentioned in the chapter, some vendors, especially in typical old markets, have loyal customers who they trust to come back and buy consistently. In that case they may keep prices steady for that person but get more profit from a new costumer, like a traveler for example. The quality of the product is likely to be of greater knowledge to the seller, therefore they are able to determine the price, at the expense of the costumers knowledge. However, if the seller informs the costumer of the true quality of the product, the costumer may decide to buy elsewhere, affecting the seller.
According to McMillan, transaction costs refer to what the consumer loses while searching for the item they desire. As mentioned above, time is a big transaction cost or specifically, a search cost. The time spent searching for the item and comparing prices from place to place or vendor to vendor, could be spent doing other things. If one decides to not spend the time searching for the best price or item, they could end up paying way more for the item than they necessarily need to.
Imperfect information can rise to numerous issues. Assuming everyone knows the price of the item at each place it's being sold can lead to sellers underpricing the item. On the other hand, if the seller believes that costumer will not spend time searching for the best price, they are likely able to sell an item at a higher price than other locations. As mentioned in the chapter, some vendors, especially in typical old markets, have loyal customers who they trust to come back and buy consistently. In that case they may keep prices steady for that person but get more profit from a new costumer, like a traveler for example. The quality of the product is likely to be of greater knowledge to the seller, therefore they are able to determine the price, at the expense of the costumers knowledge. However, if the seller informs the costumer of the true quality of the product, the costumer may decide to buy elsewhere, affecting the seller.
Tuesday, April 16, 2013
A Fez of the Heart: Travels around Turkey in Search of a Hat
One passage I found particularly interesting was "In its twenty-year transformation, it seemed that Pomegranate had lost more than it had gained, and it was hard to see what could reclaim it." I found this interesting because, although this is about a location, personally I can not imagine losing so much and trying to bounce back from it. I think of things that my make town unique and losing them would be hard for the community. As for the prologue, Turkey changed from it's original ways to focusing on tourism as a big part of their profit. I believe that getting rid of tourism and reclaiming it's past would hurt the country overall.
There is a clear interaction between economics and culture. The reading states that culturally, nudity was unheard of. Now, nudity is accepted as a factor of tourism, which is huge for the economy. Tourism brings in business which runs the economy.
I see two sides of tourist destinations in Mexico. On the one hand, there are locations like Cancun which are huge tourist locations simply due to the big "resorty" feel. On the other hand, the museums display great history of the country.
There is a clear interaction between economics and culture. The reading states that culturally, nudity was unheard of. Now, nudity is accepted as a factor of tourism, which is huge for the economy. Tourism brings in business which runs the economy.
I see two sides of tourist destinations in Mexico. On the one hand, there are locations like Cancun which are huge tourist locations simply due to the big "resorty" feel. On the other hand, the museums display great history of the country.
Saturday, April 13, 2013
Travel and Tourism in Mexico
Tourism is a huge source of income for Mexico. In 2007, it was found that $12.9 billion were brought in my tourism. 67% of the tourists of from the United States, taking advantage of attractive offers for traveling. Most tourists head to the beaches of Mexico to catch some sun on their vacation. Cancun and Mexico City are popular locations for tourists, because they have been developing with huge resorts that attract outsiders. Mexico is a common destination for Spring Break for many Americans, and Mexico gains from that season of tourism.
The largest national park in Mexico is Arrecife Alacranes National Park. It is actually entirely underwater as it is a reef in the Campeche Bank (southern end of Mexico). Birds are a major part of wildlife in Mexico. The beautiful colors and variety of birds attract birdwatchers. The Quetzal, shown below, is native to western Mexico.
The Palacio de Bellas Artes, shown below, is a huge museum in Mexico City, Mexico. The museum contains murals by Diego Rivera and Siqueiros. It also hosts many theatrical performances, dances, music, and opera. The Church of Santo Domingo de Guzman is now a popular museum. Rooms that used to be the monastery, is now occupied by the Cultural Centre de Oaxaca. The church is still used, but other portions of the building house famous artifacts and tombs.
http://www.explorandomexico.com/about-mexico/6/137/
http://www.onejungle.com/travel-resources/articles/wildlife-encounters/item/304-the-mexican-wildlife
Google Images
The Palacio de Bellas Artes, shown below, is a huge museum in Mexico City, Mexico. The museum contains murals by Diego Rivera and Siqueiros. It also hosts many theatrical performances, dances, music, and opera. The Church of Santo Domingo de Guzman is now a popular museum. Rooms that used to be the monastery, is now occupied by the Cultural Centre de Oaxaca. The church is still used, but other portions of the building house famous artifacts and tombs.
http://www.explorandomexico.com/about-mexico/6/137/
http://www.onejungle.com/travel-resources/articles/wildlife-encounters/item/304-the-mexican-wildlife
Google Images
Wednesday, April 10, 2013
Mexico's Statistics and Resources
GDP - $1.761 trillion
GDP per capita - $15,300
Life expectancy - 76.66 years
Poverty rate - 51.3%
Literacy rate - 86.1%
Unemployment rate - 5%
Inflation - 3.6%
The climate of Mexico varies from tropical to desert, depending on location. Some areas receive as much as 79 inches of rain per year, while others receive as low as 3 inches. There are high mountains, high plateaus, and desert, but also low plains for agriculture. Major natural resources include gold, silver, copper, lead, zinc, timber, natural gas, and petroleum. The Rio Grande, part of the border between Mexico and the US, is the most widely known river of the country that flows into the Gulf of Mexico. Other big rivers include Rio Culiacan and Rio Balsas, both of which flow into the Pacific Ocean.
The labor force of Mexico is about 50.7 million. By occupation, 13.7% are in agriculture, 23.4% in industry, and 62.9% in services. Mexico's educational system consists of three levels of schooling in basic education; primary (primaria), secondary (secundaria), and high school (preparatoria). Primary consists of grades 1-6, secondary is 7-9, and high school is comprised of grades 10-12. College is much like the US in that there are mostly 4 year undergrad programs and the possibility to earn a Master's Degree or Doctoral Degree in postgrad. The unemployment rate of youths (age 15-24) is 9.5%.
Mexico has industries of tobacco, chemicals, iron and steel, petroleum, and motor vehicles. There are also industries of textiles, clothing, and tourism. Technology has advanced in Mexico. Computers are now matching standards of the United States and therefore education about information technology has increased. Infrastructure of Mexico is modern. There are newly designed highways that ensure transportation and delivery run smoothly. There are locations on the US-Mexico border that allow the railway systems to to connect to commercial areas of the US.
GDP per capita - $15,300
Life expectancy - 76.66 years
Poverty rate - 51.3%
Literacy rate - 86.1%
Unemployment rate - 5%
Inflation - 3.6%
The climate of Mexico varies from tropical to desert, depending on location. Some areas receive as much as 79 inches of rain per year, while others receive as low as 3 inches. There are high mountains, high plateaus, and desert, but also low plains for agriculture. Major natural resources include gold, silver, copper, lead, zinc, timber, natural gas, and petroleum. The Rio Grande, part of the border between Mexico and the US, is the most widely known river of the country that flows into the Gulf of Mexico. Other big rivers include Rio Culiacan and Rio Balsas, both of which flow into the Pacific Ocean.
The labor force of Mexico is about 50.7 million. By occupation, 13.7% are in agriculture, 23.4% in industry, and 62.9% in services. Mexico's educational system consists of three levels of schooling in basic education; primary (primaria), secondary (secundaria), and high school (preparatoria). Primary consists of grades 1-6, secondary is 7-9, and high school is comprised of grades 10-12. College is much like the US in that there are mostly 4 year undergrad programs and the possibility to earn a Master's Degree or Doctoral Degree in postgrad. The unemployment rate of youths (age 15-24) is 9.5%.
Mexico has industries of tobacco, chemicals, iron and steel, petroleum, and motor vehicles. There are also industries of textiles, clothing, and tourism. Technology has advanced in Mexico. Computers are now matching standards of the United States and therefore education about information technology has increased. Infrastructure of Mexico is modern. There are newly designed highways that ensure transportation and delivery run smoothly. There are locations on the US-Mexico border that allow the railway systems to to connect to commercial areas of the US.
Monday, April 8, 2013
"Incrementos de combustibles dañan a los que menos tienen" by Rodolfo Hernandez Gonzalez
Article date: 4/7/13
http://www.noticiasnet.mx/portal/chiapas/general/145248-incrementos-combustibles-danan-que-menos-tienen
This article explains that recent increases in the price of fuel, electricity, and piped water have impacted the poor. Armando Lopez Rico as political figure and member of "la Organización Proletaria Emiliano Zapata del Movimiento de Liberación Nacional (OPEZ-MLN)," claimed the group will be in the state capital to express their opposition towards the economic policies of fuel, electricity, and piped water, because they greatly affect the poor people. Specifically, Lopez Rico said "[Se manifestarán] contra el alto costo de la vida, exigiremos una tarifa justa y equitativa de la energía eléctrica, además de condenar los costo de la gasolina". This translates to the claim that the organization will march in opposition to the high cost of living, demand fair prices of electricity, and condemn the costs of fuels.
In class, we have displayed price increases in terms of supply and demand curves. In the case of the increase of prices of fuel in Mexico, I assume there has been a higher demand for fuel and electricity, since Mexico is a developing country. It is possible that a price ceiling be implemented so that the price of fuel is affordable to the poor, however, in the end there will be a shortage of fuel overall. When considering policies for fairness, the country may consider minimum wage laws. Increasing minimum wage will increase the income of the employed poor and therefore, they will be able to afford more.
http://www.noticiasnet.mx/portal/chiapas/general/145248-incrementos-combustibles-danan-que-menos-tienen
This article explains that recent increases in the price of fuel, electricity, and piped water have impacted the poor. Armando Lopez Rico as political figure and member of "la Organización Proletaria Emiliano Zapata del Movimiento de Liberación Nacional (OPEZ-MLN)," claimed the group will be in the state capital to express their opposition towards the economic policies of fuel, electricity, and piped water, because they greatly affect the poor people. Specifically, Lopez Rico said "[Se manifestarán] contra el alto costo de la vida, exigiremos una tarifa justa y equitativa de la energía eléctrica, además de condenar los costo de la gasolina". This translates to the claim that the organization will march in opposition to the high cost of living, demand fair prices of electricity, and condemn the costs of fuels.
In class, we have displayed price increases in terms of supply and demand curves. In the case of the increase of prices of fuel in Mexico, I assume there has been a higher demand for fuel and electricity, since Mexico is a developing country. It is possible that a price ceiling be implemented so that the price of fuel is affordable to the poor, however, in the end there will be a shortage of fuel overall. When considering policies for fairness, the country may consider minimum wage laws. Increasing minimum wage will increase the income of the employed poor and therefore, they will be able to afford more.
Sunday, April 7, 2013
Mexican Culture
1. Popular sports in Mexico include Mexican football, or what we call soccer. Audiences range from a few thousand up to 70,000 to watch the popular sport. There are 4 divisions in which each has over 15 teams. The Mexican national team has competed in several world cups. Cuauhtemoc Blanco, shown below, is considered to be one of the greatest Mexican football players of all time. He is the only Mexican Athlete to have won major awards in an international FIFA competition.
Other popular sports include boxing, bullfighting, and wrestling. With American influence, Mexico has participated in baseball, basketball, and golf.
http://www.donquijote.org/culture/mexico/
2. Traditional Mexican music is played using drums, maracas, flutes and even sea shells. Mariachi was originated in the 18th century and is still popular today. The video below shows traditional Mariachi with a modern twist. Popular music has been influenced by the United States and adopted rock and pop music, like that of Gloria Aura.
Other popular sports include boxing, bullfighting, and wrestling. With American influence, Mexico has participated in baseball, basketball, and golf.
http://www.donquijote.org/culture/mexico/
2. Traditional Mexican music is played using drums, maracas, flutes and even sea shells. Mariachi was originated in the 18th century and is still popular today. The video below shows traditional Mariachi with a modern twist. Popular music has been influenced by the United States and adopted rock and pop music, like that of Gloria Aura.
3. Traditional foods are highly associated with culture and tradition. Tamales are made of a dough with meat, chilies, cheese, or vegetables and wrapped with leaf and boiled. They are are then unwrapped and eaten. Tamales are traced back to the Mayans, who prepared them for feasts. Pambazo is a traditional bread that got it's name from "pan basso" or low class bread. It is also a dish that is white bread filled with potatoes and chorizo and dipped in a red pepper sauce. Popular foods include enchiladas and flan, which originated in Europe.
4. Mexicans are mostly found to be Christians, specifically Catholic (about 80% in 2010). Recently, many people have been following Protestantism. Catholicism began in Mexico when Spanish conquistador Hernan Cortes pressured the indigenous people to follow the religion in 1512.
5. National holidays include bright colors, high energy, and unity across the country. Dia de los Muertos, pictured below, is a famous holiday of theirs. The holiday is to honor friends and family who have passed and to celebrate the life they had. Sugar skulls, also shown below are painted in bright colors. Cinco de Mayo is a holiday to celebrate Mexico's victory over France in the Battle of Puebla in the French American War. Other holidays include Día de la Constitución and Día de la Independencia, which each portray the patriotism of the country.
6. Movies and film began to grow in the 1930s and 1940s, as it is known as the "Golden Age of Mexican Cinema". Famous actors and actresses of this time include Mario Moreno Cantinflas, Dolores Del Río, and Sara García. From 1960s to the 1980s horror movies in Mexico emerged and in the 90s Mexican movies became international. Actors like Salma Hayek and Gael García Bernal began as Mexican actors but have been making appearances in American films as well.
7. News Sources:
http://www.mexconnect.com/
http://www.ensenada.net/
http://www.noticiasnet.mx/portal/
8. Forums for expatriates:
http://www.internations.org/mexico-expats
http://www.expatfocus.com/expatriate-forums-mexico
http://www.mexicoonmymind.com/#
9. Governing in Mexico is much like that of the United States in that it includes an executive, judicial, and legislative branch. The president of Mexico is currently Enrique Pena Nieto, pictured below. All people over 18 are automatically eligible to vote, because their ID serves as a voting card. Some political parties include Institutional Revolutionary Party, National Action Party, Party of the Democratic Revolution, and the Labor Party.
Thursday, April 4, 2013
Reinventing the Bazaar by John McMillan - Chapter 1
1. McMillan makes it clear that there are defining characteristics of a market. For one, he claims "A market for something exists if there are people that want to buy it and people that want to sell it," (p. 5). Buyers and sellers are a clear indication of a market system. McMillan states that there is a freedom involved in markets in regards to decision making and participation, though they are constrained in a sense of resources and rules.
The voluntary exchanges between the two parties, or market transactions, are another characteristic of a market. Although many transactions, like unpaid work in the household, and those inside firms and the government, are outside of the market, they still shape the economy because they "take place within context of markets," (p. 7). With transactions, come costs. Money, time, and effort are few of the many transaction costs that are seen in a market.
McMillan explains market design as "the methods of transacting and the devices that serve to allow transacting to proceed smoothly." The design is required to set structure to the market with rules, regulations, and definitions of various aspects of a market. He makes it clear that market design "does not control what happens in the market...it shapes and supports the process of transacting," (p. 9).
2. I have observed both positive and negative opinions of the economy. I know a few elders who have lost jobs and therefore lose faith in the economy and market system. Others I know that praise the market tend to be fairly wealthy. In my hometown, both are visible. The main road through the suburb is lined with stores, several of which have closed down recently, leading to negative views of the market. In a nearby suburb, there is an individual who is buying and remodeling several old buildings to enhance the town and start changing peoples views of the market. I'm not saying that income is a determinant of an individual's opinion on the market, but it may be a factor.
I personally don't believe there is a clear side. Economics is not my strength, but I think there will always be ups and downs in a market, it's natural. The natural change in a market will lead people to have different views. I believe in order for a market to work well, there needs to be structure rather than no regulations at all.
3. I think rules are essential for modern markets. For one, government play an important role in setting standards for markets. They can set prices and manage money, so that markets are kept active. McMillan also explains that the government needs to be change rules to adapt to the constant technological advances. He gave and example of music online, which I believe without restrictions, the market for online music would be out of control. McMillan says that "Competition, while not a defining feature of a market, is usually present and adds to the autonomy," (p. 6). I think that competition is key in a market, because it causes firms to be conscious of pricing and restrains any one firm from dominating.
The voluntary exchanges between the two parties, or market transactions, are another characteristic of a market. Although many transactions, like unpaid work in the household, and those inside firms and the government, are outside of the market, they still shape the economy because they "take place within context of markets," (p. 7). With transactions, come costs. Money, time, and effort are few of the many transaction costs that are seen in a market.
McMillan explains market design as "the methods of transacting and the devices that serve to allow transacting to proceed smoothly." The design is required to set structure to the market with rules, regulations, and definitions of various aspects of a market. He makes it clear that market design "does not control what happens in the market...it shapes and supports the process of transacting," (p. 9).
2. I have observed both positive and negative opinions of the economy. I know a few elders who have lost jobs and therefore lose faith in the economy and market system. Others I know that praise the market tend to be fairly wealthy. In my hometown, both are visible. The main road through the suburb is lined with stores, several of which have closed down recently, leading to negative views of the market. In a nearby suburb, there is an individual who is buying and remodeling several old buildings to enhance the town and start changing peoples views of the market. I'm not saying that income is a determinant of an individual's opinion on the market, but it may be a factor.
I personally don't believe there is a clear side. Economics is not my strength, but I think there will always be ups and downs in a market, it's natural. The natural change in a market will lead people to have different views. I believe in order for a market to work well, there needs to be structure rather than no regulations at all.
3. I think rules are essential for modern markets. For one, government play an important role in setting standards for markets. They can set prices and manage money, so that markets are kept active. McMillan also explains that the government needs to be change rules to adapt to the constant technological advances. He gave and example of music online, which I believe without restrictions, the market for online music would be out of control. McMillan says that "Competition, while not a defining feature of a market, is usually present and adds to the autonomy," (p. 6). I think that competition is key in a market, because it causes firms to be conscious of pricing and restrains any one firm from dominating.
Tuesday, April 2, 2013
"Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?" A Talk by Jared Diamond
a. In Diamond's article, "Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?" he expresses themes of the evolution of human society. Specifically, he focuses on how environmental factors such as climate, domesticated animals, and technology shaped human society in various geographic locations. He states that most believe the evolutionary variations are result of biological differences, but fights that due to geographically location and other factors, the racist belief is out of question.
b. Diamond claims that climate in locations such as Africa, which is oriented on a north/south axis, restricts animals and plants from becoming domesticated further south due to wider variation of the seasons. Eurasia, on the other hand, has an east/west axis which allows plants and animals to become domesticated with the similar climate over the location. The ability to have animals domesticated led to the diseases that evolved in European populations. Technology, according to Diamond, must be invented or adopted, usually diffuse from outer sources, and must be maintained. In regards to Tasmania, an isolated island off of Australia, technology like bone tools and act of fishing were present when connected to Australia, but they were lost after the bridge between the two was taken down.
c. In todays economy, technology invented in one location can easily be spread and shared with others, though some locations are more technologically advanced than others. As Diamond had claimed, areas like Europe were more advanced than locations such as Africa. This is still true today in that most parts of Africa are considered underdeveloped countries.
b. Diamond claims that climate in locations such as Africa, which is oriented on a north/south axis, restricts animals and plants from becoming domesticated further south due to wider variation of the seasons. Eurasia, on the other hand, has an east/west axis which allows plants and animals to become domesticated with the similar climate over the location. The ability to have animals domesticated led to the diseases that evolved in European populations. Technology, according to Diamond, must be invented or adopted, usually diffuse from outer sources, and must be maintained. In regards to Tasmania, an isolated island off of Australia, technology like bone tools and act of fishing were present when connected to Australia, but they were lost after the bridge between the two was taken down.
c. In todays economy, technology invented in one location can easily be spread and shared with others, though some locations are more technologically advanced than others. As Diamond had claimed, areas like Europe were more advanced than locations such as Africa. This is still true today in that most parts of Africa are considered underdeveloped countries.
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