Reflection of the Class

a. What did you learn in this class that you believe will be most directly applicable to understanding how the world works?

I'd have to say that the reading about backhaul and its effects of exports was the one thing I learned in class that expanded my view of the world the most. I always knew that the US imported a lot of goods from China, but I never even began to imagine how those goods came into this country, and how those ships had to return to China. That reading really broadened my view on the impact of different business decisions and the globalization of our world. You always hear that the world is so small. Truth is, the world is huge, but there is such an extensive network of connections and collaborations with other countries, that sending a shipment to the other side of the world is completely feasible; and that, on its own, is incredible. I definitely understand the interconnections of our world a lot better now.

b. What topics are you interested in learning more about, after this class ends?

I would love to learn more about globalization and the impacts that one market can have on another. I found the idea of arbitrage and the law of one price incredibly interesting and I would like to continue learning about them. I actually think I might continue learning about economics and take another econ class besides this seminar.

c. What do you think will be the most challenging for you next year, whether you're studying abroad, studying away, or studying at K?

Next year, I will be living abroad in Clermont-Ferrand, France; where I will be living with a French host family and attending classes at a French university. I'd have to say that the biggest challenge I see in my future is getting past that language barrier and communicating/understanding with my professors, peers, and host-family. I already know that I tend to close up when I am speaking a foreign language, and I'm nervous that this tendency will prevent me from engaging with any of my peers.

City Analysis: Clermont-Ferrand

1. Where does your city fall in the hierarchy of Central Places? 

Clermont-Ferrand is a city and a commune of France, with a population of 141,000. It has a metropolitan area with over 467,178 inhabitants and is the capital of the Puy-de-Dome department. 
Clermont-Ferrand is surrounded by a major industrial area, along with a chain of volcanoes that surround the city. Clermont-Ferrand is also France's first city to get a new Translohr transit system which links the city's north and sounth neighbourhood. Therefore, I can assume that Clermont-Ferrand is among the top in the hierarchy of Central Places.
More data:
Urban area: 300km^2 population: 467,178
Metro area: 1,3431 km^2 Population: 467,178
Land area: 42.67 km^2 Population: 140,957

2. What does your city offer that wouldn't be available in a smaller place? 

Clermont-Ferrand is a big enough city that it has many accomodations that other, smaller cities may not.  This is is especially true since Clermont-Ferrand is quite the tourist attraction (second to Paris and Lyons). Clermont-Ferrand has many museums and historical monuments, such as the Notre-Dame-Du-Port Basilica. It also offers the unique attraction that it is a city on a volcano, and is home to one of the biggest Michelin factories. Clermont-Ferrand also has an extensive train network, as well as an airport and relatively big business district. 

Though the city is pretty high up on the hierarchy of Central Places, it is not as big of a city as others, like Paris, Lyons, or Strasbourg. Because of that, Clermont lacks some of those big-city aspects like a fashion district or the night-life to accompany big cities. 

News Summary

French rail company orders 2,000 trains too wide for platforms

Article: http://www.reuters.com/article/2014/05/21/us-france-trains-idUSKBN0E021720140521

1. Briefly summarize the issue. 

France's National Rail Company were planning to expand their regional network, however, the 2,000 trains that they ordered are too wide for many of the station platforms.
The reason for this mix up is that the National Rail Company were only given the dimensions of platforms that were built less than 30 years ago. Unfortunately, there are more than 1,200 platforms that were built more than 50 years ago that have a smaller dimensions and will be unable to accommodate for the new trains.

2. Relate the issue to one or more of the economic concepts we have discussed in class.

Transportation has been the biggest topic that we have been studying in class. We have mostly focused on the transportation of goods and the effects of the transaction costs. This article focuses on how the infrastructure of a country's transportation system is affected by various factors and the costs and risks of modernizing and adapting new transportation systems. 

3.  What led to this situation? Can you suggest a resolution to this 

As said above, the reason for this is that the Rail Company were given faulty dimensions. The construction work has already begun to reconfigure station platforms to give the new trains room to pass through. Repair work has already cost 80 million euros ($110 million) and is estimated to escalate further.

Junkyard Planet, Chapter Five

Chapter Five: Junkyard Planet

a. India and China are both rapidly industrializing countries with a large demand for resources, yet the vast majority of US scrap metal goes to China. Explain why.

The main reason that the mast majority of US scrap metal goes to China rather than India is because the shipping prices to export to China are so much cheaper than they are for India. Even though the cost of labor is significantly cheaper in India than it is in China, the cost of transporting goods to India exceeds the gains from the labor cost difference. As Minter explains, "India simply doesn't export as many products to the West Coast of the United States. Until it does, the shipping companies aren't going to have much incentive to offer discount shipping rates for the backhaul." which therefore makes it more expensive to ship scrap metal to India rather than China.

The reason that it is so cheap to export scrap metal to China is because of the trade inbalance between China and the United States. China exports nearly $243 billion worth of goods to the United States whilst only exports around $41 billion in return. This inbalance means that shipping companies will discount the prices from the US back to China (since the boats cannot return empty) This discount enables scrap metal companies to send millions of dollars worth of scrap metal for only a few hundred dollars back to China. 

b. Choose a passage from this reading that illustrates a larger issue or problem related to globalization. Explain

I think there are actually two passages that really encompass the problem related to globalization:

" ...Without such end markets (factories that use and transform scrap metal)  there's absolutely no reason for a  Sudanese to import $60,000 containers of scrap metal. In fact, the lack of such buyers means that the relatively small quantity of scrap produced in Sudan is actually exported, with much of it going to India and China..." (94)

"...All of this globalized scrap, every last hunk, moves according to who wants it most, and who can ship it most cheaply..." (95)

 I think these two passages do a good job of explaining a couple of the issues that globalization presents. The first one shows how countries are forced to move forward with the rest of the world and keep up with the fast-paced rate of innovation and industrialization. It also shows how countries don't have any other choice but to globalize, because if they don't, they may fall behind or miss out. The second passage shows the competitiveness of globalization, and the way that some countries can benefit from globalization, while others, which may not be able to present much incentive to import or export, can be hindered away from expanding.

c. More generally, how does modern transportation relate to the themes raised by Jared Diamond in "Why Did Human History Unfold Differently on Different Continents for the Last 13,00 Years?"

The main argument of Jared Diamond's reading was that location was the biggest advantage or disadvantage in terms of human evolution and colonization. He stated that the geography of different countries was the main determinant as to which countries excelled and which didn't.
Minter touches on the topic of location when he talks about the reasons that the Middle East exports scarp metal to India rather than the United States. The message of these two readings can be combined into concluding that the location of certain countries can be an advantage or disadvantage, in terms of how easily other countries can access them using modern transportation. We touched briefly on this topic when we talked about the differences between Mexico (which has access to both the Pacific and Atlantic Oceans) and Brazil (which seems to be located on the wrong side of the ocean to be easily accessible for importing and exporting) Diamond stated that location was the main influence on our history, and using Minter's reading we can agree that the globalization industry is also greatly influenced by the locations and geographies of countries. Using Diamond's logic, it is clear that countries in an optimal shipping location will be at a greater advantage than those that aren't, and will grow, evolve, and industrialize at a much quicker pace as a consequence.

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger

URL: http://press.princeton.edu/chapters/s9383.html

a. Identify a selection from this chapter that you found particularly interesting and explain why you selected it.

"Almost every one of the intricate movements required to service a vessel is choreographed by a computer long before the ship arrives. Computers, and the vessel planners who use them, determine the order in which the containers are to be discharged, to speed the process without destabilizing the ship. The longshoreman who drives each machine faces a screen telling him which container is to be handled next and where it is to be moved--unless the terminal dispenses with longshoremen by using driver-less transporters to pick up the containers at ship side and centrally controlled stacker cranes to handle container storage. The entire operation runs like clockwork, with no tolerance for error or human foibles. Within twenty-four hours, the ship discharges its thousands of containers, takes on thousands more, and steams on its way. The 11,000-mile trip from the factory gate to the Ohio warehouse can take as little as 22 days, a rate of 500 miles per day, at a cost lower than that of a single first-class air ticket. More than likely, no one has touched the contents, or even opened the container, along the way."

This particular paragraph was especially interesting for me because we have been simulating this exact thing in my computer science class. In fact, the introductory paragraph of the Data Structures book uses this exact scenario as an example of how stacks, queues and other organization methods that you can program are used. It's nice to see that what you read about in books and study in the classroom can actually have a huge impact on the world and its economy. I'm also really interested in how these things are programmed so that you can fill a boat at the same time as you are emptying it; especially since you have to counterbalance with whats already there.

There is another factor in this paragraph that captivated my attention; and that is the transportation costs of the container. I'm amazed that you can move so many goods on average 500 miles a day for less than a first-class airplane ticket.

b. How does the author see the development of the shipping container contributing to globalization?

According to the author, the container is one of the biggest contributors to globalization. According to him, the container made shipping cheap, which allowed firms to transform from catering domestically to catering internationally; with the ability to sell their products just as easily far away as if they were selling them locally.
Following the innovation was the making or refueling of new ports, such as Busan and Seattle. Having these ports available, as well as the cheap prices of transformation provided by the container contributed greatly to globalization as we know it today.

In the words of the author, "It was not routine for shoppers to find Brazilian shoes and Mexican vacuum cleaners in stores in the middle of Kansas. Japanese families did not eat beef from cattle raised in Wyoming, and French clothing designers did not have their exclusive apparel cut and sewn in Turkey or Vietnam. Before the container, transporting goods was expensive--so expensive that it did not pay to ship many things halfway across the country, much less halfway around the world."

c. Who do you see gaining and losing from this transformation of global transportation?

• Workers: Most the workers that once made their livings loading and unloading ships were let off. This could either be a gain or a loss (since most of the well ill-paid and ill-treated) Most were replaced by computers. However, for those that were working, the workweek grew shorter, disability pay was made more generous, and people could retire at an earlier age. 
• Cities: some cities saw their waterfronts decline, since they were no longer needed. 
• Ship Lines: Some ship lines were crushed by the cost of having to adapt their methods to the container. 
• Small towns: some small towns that are at a great distance from cities really took advantage of the container, as their cheap land and low wages encouraged factories to travel away from a port (since transportation was so cheap) and bring jobs to the village
• Poor countries could realistically become suppliers to wealthier countries far away
• Consumers: could now enjoy the freedom of choice
• Everyone: inexpensive imported goods boosted living standards

News Summary

Tourism and France

"France is wonderful, but it would be even better without the French"

Article: http://www.news.com.au/travel/travel-updates/french-plan-to-become-tourist-friendly/story-e6frfq80-1226681690799

1. Briefly summarize the issue. 

France has held the number one position for most visited country for a couple of years now. However, even though tourism plays such a huge roll in France's economy, providing 11% of all employment and more than 7% of the country's GDP, not a lot of tourists spend much money while in France.
France has a reputation for having a stubborn attitude towards tourists, and though this is part of the experience of traveling to France, it turns many people away from spending time and money there. According to the article, there has been a lot of movement towards making France, more specifically Paris, more tourist friendly, in hopes of persuading tourists into returning and spending more while visiting.

2. Relate the issue to one or more of the economic concepts we have discussed in class.

Lately in class, we have talked about the impact of tourism on an economy and the effects of tourism on the hosting culture. 

When reading this article, I found a lot of resonating similarities between the effort towards making France more tourist friendly and the message that I took away from A Fez of The Heart; which was that tourism can have such a great influence on the economy, that people are willing to make adjustments to their own culture in order to accommodate for the visitors. 

Throughout the reading, I also found a few connections between the impacts of tourism and the economy of France. As said earlier, tourism is a huge industry for France. This article talks about how there are certain aspects that could help optimize the attraction to the country in order to increase the economy and make the tourism industry of France more beneficial. 

3.  What led to this situation? Can you suggest a resolution to this problem?

This article does an excellent job in pin pointing exactly what the problems where and some possible solutions, some of which include:

• Decreased value in tourism: people will only travel to France for a short period of time, such as a weekend, and will usually continue traveling to other European capitals. A possible solution to this was to draw tourists to other parts of the country, and to persuade regions to work together as partners, and not competitors. 
• France is also known for the high rate of petty crime, such as pit pocketing that is prevalent around the city; it is so prevalen
  t, in fact, that it has become one of the things the city is most known for. As a solution, Parisians are hoping to raise awareness to tourists, and have train their police department in more than six languages, to help tourists deal with issues ensued by such crimes. 
  Another solution that I found throughout the article was the increased influence towards french hospitality. The Paris Chamber of Commerce and Industry, along with the Regional Tourism Committee created a guide for people called "Do You Speak Tousite?" to help cross certain cultural and linguistic bridges.
• Another one of the most common complaints about France is the lack of garbage bags. To some this is a "sign of how the French can sometimes ignore the comfort of tourists." in the words of one of the chairs of the Tourism Committe, "A tourist has come 7000 kilometres to see the Champs-Elysees, the most beautiful avenue in the world, that embodies France and its prestige and its influence in the world and there isn't a garbage can,".
• .And finally, one of the most surprising hassles of Paris is struggling to find a good meal at any given hours. According to the article, the French are incredibly rhythmic. Lunch is from 12 to 2 and dinner is served from 8 to 10. This habit can be incredibly bothersome for a tourist, who may be used to a different eating schedule, or has been jet lagged due to travel. 

Country Profile-Part Five

Water Transportation 

France has the largest natural and man-made waterways network in Europe, extending over 8500 km. 

a. Closest major ocean port

Since France is next to the ocean, there are many ocean-size ports. Perhaps the most famous, however, is La Pallice, also known as Grand port maritime de la Rochelle. The area for La Rochelle is 10.98 sq miles.

b. Other ports in country

Nantes, Bordeaux, Cherbourg-Octeville, Le Havre, Bayonne, Boulougne-sur-Mer, Brest, Calais, Dunkerque, Fos-sur-Mer, La Pallice, Lorient, Marseille, Nice, Pairs, Port-la-Nouvelle, Port-Venders, Roscoff, Rouen, Saint-Nazaire, Saint-Malo, Sete, strasbourg, and Toulon.

Land Transportation

France has one of the densest networks in the world, with 146 km of road and 6.2 km of rail lines per 100 km^2. This is built as a web with Paris at the center. 

a. Railroad (freight and passenger)

There is a total of 64,900 km of railway in France. However, this railway system is a small portion of total travel, accounting for less than 10% of passenger travel. 

France is known for their high-speed Linges a Grande Vitesse (LGV) lines, which link France's most popular cities, starting with Paris and Lyon. This network has set many world speed record; the most recent being the world speed record for conventional rail trains, which was set on April 3, 2007.

b. Highway and road network

There are 1,000,960  km of roads in France. This consists largely of toll roads. Most of the motorways are operated by private companies. France has the seventh largest highway network in the world, after US, China, Russia, Canada, Spain, and Germany. France is also believed to be the most card dependent country in Europe. 

Air Transportation

There are approximately 478 airports in France, and three heliports. 

a. International airports

Ajaccio – Campo dell'Oro Airport
Bastia – Poretta Airport
Beauvais-Tillé Airport
Bergerac – Bergerac-Roumanière Airport
Béziers Cap d'Agde Airport
Biarritz Airport
Bordeaux – Mérignac Airport
Brest – Brest Bretagne Airport
Carcassonne – Salvaza Airport
Châlons-en-Champagne – Châlons Vatry Airport
Chambéry-Savoie Airport
Dinard – Pleurtuit Airport
Figari Sud-Corse Airport
Grenoble-Isère Airport
Île de Ré Airport
Lille Lesquin Airport
Limoges – Bellegarde Airport
Lyon – Saint-Exupéry Airport
Marseille – Provence Airport
Méditerranée Airport
Mulhouse – Basel-Mulhouse-Freiburg Airport
Nantes Atlantique Airport
Nice – Côte d'Azur Airport
Nîmes – Garons Airport
Paris – Charles de Gaulle Airport
Paris – Orly Airport
Pau – Uzein Airport
Perpignan – Llabanère Airport
Poitiers – Biard Airport
Rodez – Marcillac Airport
Bouthéon Airport
Strasbourg Airport
Toulon – Hyères Le Palyvestre Airport
Toulouse – Blagnac Airport
Tours Loire Valley Airport

Source: 

Wiki.com