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

Country Profile-Part Four

FRANCE

International Trade (What? How much? To whom? From Whom?)

a. Exports

Exports in France averaged 17248.35 EUR Million from 1970-2014

France is one of the largest exporters of luxury goods and agricultural products in the world. 

Main exports: aircrafts, food, chemicals, industrial machinery, iron and steel, electronics, motor vehicles, and pharmaceuticals. 

Main export partners are: Germany, Italy, Spain, Belgium, United Kingdom, United States, Netherlands, and China. 

b. Imports

Imports in France decreased to 39609 EUR Million in February of 2014 from 41923 EUR Million in January of 2014. 

France main imports are: fuel, electronics, chemicals, metal products, industrial and agricultural machinery, cars, food and clothing. 

Main import partners are: Germany, China, Belgium, Italy, Spain, United States, United Kingdom

Exchange rate (current value, recent history)

1 Euro = 1.38 US Dollars

Recent news on the Euro: On Jan 1, 2014, Latvia became the 18th nation to adopt the euro.

Lithuania is expected to adopt the Euro in 2015. 

Immigration/emigration (from where? to where? how much?)

There are an estimated 11.8 million foreign-born immigrants (and direct descendants) living in France. 

More than 5.5 million are of European origin and about 4 million are of Maghrebi origin. 

In percentages, 42% of immigrants are from Africa, 38% from Europe, 14% from Asia, and 5% from America and Oceania

France has a very low emigration rate. However one out of four French university graduates wants to emigrate.  With most people moving to other countries in Europe. 

The French net migration rate (migrants/10000 population) was 1 as of 2012

Relations with other countries (recent or historical conflicts, allies)

France is a founding member of the United Nations

Main allies: German, Italy, United States

recent conflicts: France is currently engaged in an armed conflict in Afghanistan (fighting against the US)

Basque Separatist Conflict: the rebel group called Basque Fatherland and Liberty guerrilla group has waged an urban guerrilla movement for independence from Spain and southwestern France.

Sources

tradingeconomics.com/france

wikipedia.com

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

A Fez of the Heart

Choose one passage from the reading that you found particularly interesting. Why was this interesting? 

"The shrine is testimony to a time when life in Pomegranate changed so fast that the tools of working men were museum pieces before those who once had used them had had time to die."

It is amazing to me that the economy and focus of a town can change so fast that the original tools used to fuel the economy of a town were discarded and replaced so fast that they were quickly used as souvenir pieces and decorations to attract tourists and inform them of what the town used to be like. So quickly in fact, that those who used them were still alive and attributing to the economy. I can't imagine what it would have been like to live in a city that was evolving so quickly.

Use examples from this reading to illustrate the interaction between economics and culture. 

There is a passage in the reading that, to me, really encompasses the relationship between economics and culture:
"Despite that Turkish victory and excepting the ubiquitous Turkish flag, Turkey did not seem to exist in Pomegranate that morning. On the main street, the incursions of English and German had rendered Turkish a minority language. Turkish food had been replaced by "handburgers" and even doner kebap was being advertised as "authentik Turkische cuisine," as if this staple of Turkish food could only hold its own by being touted as a gastronomic heritage experience." 

The idea that a city can lower the expectations of its own culture to accommodate for the culture of its tourists and its source of income to the point that it advertises its own characteristic features as "authentic" really shows how culture and economics compensate for each other. 

Another example given in the reading is of the shop worker being forced to wear a fez in the hopes that it will attract tourists, even though it is illegal and insulting in Turkey to wear a fez, it is acceptable if it is in the hopes of bringing in more cash flow. 

Beyond the specific example of this town in Turkey, what connections or conflicts do you see between tourism and economics or tourism and culture?

I always see a huge conflict between tourism/economics and culture when I go to Mackinac Island. Mackinac Island became a popular tourist attraction in the late 19th Century. The entire island is listed as a national Historic landmark, and is known for its historic preservation, its Victorian buildings, fudge, and the ban on all motor vehicles. Because of these characteristics, Mackinac Island has a very historic culture, where one feels as if they stepped into a different century as soon as they step off the ferry. Unfortunately, due to the islands increase in tourism, the culture has been slowly evolving and modernizing. So much so that it has recently added a Starbucks coffee and shop to the main street. The example of Pomegranate and the more recent expansions to Mackinac Island really show how the money flow that tourists bring to a town can lower and decrease the cultural standards to accommodate for the tourists. 

Country Profile-Part Three

FRANCE

Importance of tourism to France (numbers, origin of tourists)

In 2012, France was the most popular tourist destination in the world, attracting over 83 million tourists (excluding people staying less than 24 hours) 

Travel and tourism directly contributed to EUR 77.7 billion to the French GDP. Total contribution of travel and tourism represents 9.7% of GDP and supports over 2.9 million jobs (about 11% of employment) 

Major tourist attractions

Cities of high cultural interest: Paris, Toulouse, Strasbourg, Bodeaux, and Lyon. 

Many beaches and seaside resorts, ski resorts, and rural regions.

Eiffel Tower

Louvre Museum

Palace de Versailles

Musee d'Orsay

Arc de Triomphe

Centre Popidou

Mont Saint-Michel

Chateau de Chambord

Sainte-Chapelle

Chateau du Haut-Koenigsbourg

Puy de Dome

Musee Picasso

Carcassonne

Catacombes

National parks, wildlife or nature preserves

The "Remarkable Gardens" 

Disneyland Paris

Cote d'Azur

Les Chateuax de Loire 

Vanoise National Park

Port-Cros National Park

Ecrins National Park

Guilana Amazonian Park

Important museums

Louvre (the most visited museum in the world)

Musee d'Orsay

Sources: 

Wikipedia.com

Country Profile-Part Two

FRANCE

 

GDP

2013: 2739.27 Billion U.S. dollars
2014: 2621.63 Billion U.S. dollars

GDP per Capita

2013: 40272.19 U.S. dollars
2014: 40963.65 U.S dollars

Life Expectancy
81.67 years (as of 2011)

Poverty Rate
13.5%

Literacy Rate 
99% with a rank of 37 out of 194

Unemployment Rate
10.3% (2012 estimate)

Inflation
recorded at 0.90% in February 2014
Inflation rate averaged 4.72% from 1958-2014

Natural Resources (climate, growing season, rainfall, agricultural land, major rivers and waterways, significant mineral deposits) 

•  France has a third of all the agricultural land in the European Union
• Moderate and varied climate
• The world's second largest agricultural producer (behind the U.S.) 
• accounts for 2.5% of French gross domestic product (estimate from 2006) 
• roughly 1 million farms
• main agricultural products: wheat, corn, meat, wine, sugar beets, dairy products
• forest resources cover about 17 million hectares (one third of the country's land area)
• Access to ocean and fishing industry
• Not rich in mineral resources, although there are coal deposits in the north and iron ore deposits in the east
• significant producer of uranium
• the average rainfall per year is 786 millimetres. It usually rains in the spring, but not in the summer. 
• Continental climate in the east
• main rivers: Loire which is 1,010 kilometres in length, the Seine which is 770 km, the Garonne which is 650 km, the Rhône which is 522 km and the Dordogne

Labor (size of labor force, educational system)

• In 2005 about 28 million people were active in the labor force
• from 2000-2005 employment growth averaged 3.1%
• French workers average 37 hours of work per week (with 5 weeks paid vacation)
• Except for Scandinavia, France has the world’s highest female labor market participation rate, with women representing about 47% of the country's workforce
• education system is free between the ages 2-18. Compulsory for everyone between the ages 6-16
• Most continue education beyond 16 years of age
• Top students go to high school (lycée) to study for the baccalaureat qualification, while others attend vocational school
• Outside the public education system, private education, primarily Roman Catholic, is also available
• Every high-school graduate who passes the baccalaureat exam is guaranteed a free-or nearly
  free-university education.

Capital (industry and technology, infrastructure)

• "France has a large industrial base whose contribution to the country's economic activity has not diminished in favor of services as dramatically as in other developed countries" (library of Congress)
• industry provides 22% of the jobs (U.S. is 11%)
• key industrial sectors are chemicals, pharmaceuticals, automobiles, metallurgy, telecommunications, electronics, and aircraft. 
• lots of success developing dynamic telecommunications, aerospace, and weapons sectors. 
• France has a high-quality transport infrastructure in which road, rail, air, and water transport all play a significant role

sources: 

statistica.com

indexmundi.com/france/#Economy

inequalitywatch.eu

country-facts.findthedata.org

tradingeconomics.com/france/inflation-cpi

ask.com

News Summary

World Wine Shortage and France

Article: http://www.bbc.com/news/world-24746539

Related articles: http://money.cnn.com/2013/10/29/news/economy/wine-shortage/

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/leisure/10414086/Global-wine-shortage-on-the-horizon-economists-warn.html

1. Briefly summarize the issue. 

According to the research done by America's Monrgan Stanley Financial Services and the articles, the demand for wine has greatly exceeded the supply provided and has plummeted the wine supplies into "the deepest shortfall in over 40 years of record." 

Not only has the demand for wine been increasing greatly since 2012, but because of poor weather conditions in Europe, and mainly France (the world's largest wine producer) the overall production of wine has been steadily declining, and as of October 2013, had dropped to its lowest levels in more than 40 years.

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

Supply and Demand

In France, the world’s single biggest wine producer, output fell by 18pc between 2011 and 2012 due to poor weather conditions affecting the grape crops and vineyards. However, wine consumption has increasing grately, with booming demand in the US and China driving the rise. In other words, production in Europe dropped about 10% in 2012, while at the same time, the worldwide consumption rose by 1%

An example supply/demand graph of this:

Relationship to other countries (substitutes)

Currently, France is not only the number one producer of wine, but it is also the biggest consumer of the drink, closely followed by the United States and China.  Because the production in Europe (mainly France) has decreased so much, even with the rise in demand, the market for wine has opened it doors to smaller wine producers such as the U.S. Argentina, Chile, Australia, New Zealand, and South Africa, whose productions of wine has already peaked since the articles came out in October. Unfortunately, even with these supplementary suppliers of wine, there is still little reason to believe that the global wine production will be able to pick up anytime soon and meet the increasing demand. 

An interesting fact that I found, is that China has quickly been catching up to France; competing for the number one producer of wine position. The demand for wine in china has more than doubled in the last five years, which has given incentive for  China to produce its own wine. If this trend continues, China will replace France as the world's largest consumer and producer of wine by 2016.

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

As stated earlier, the reason that the production of wine in France has decreased is because of the poor weather conditions since 2010. Unfortunately, aside from cropping strategies and manipulation of the crops, there is not much that can be done about the weather and its effects on the grapes. 

Country Profile-Part One

CLERMONT-FERRAND, FRANCE

Popular Sports

Sports in France play an important role in French Society, and the country has a strong sporting history.

• The most popular sport in France is football (or soccer)
• Popular Soccer Teams: The France national football team, AS Saint-Etienne, France Women's national football team
• Tour de France 
• Basketball
• Current NBA players: Tony Parker, Joakim Noah, Nicolas Batum, Kevin Seraphin, and Boris Diaw
• Motorsports like auto racing and motorcycle racing
• Handball
• France national handball team is the current double reigning Olympic Champion and European champion
• Montpellier Agglomeration Handball is the most successfull french team for men
• Championnat de France de handball feminin is the most successfull french team for women
• Rugby
• Ice hockey
• Parkour
• fun fact: parkour was developed in france
• founder: David belle  

Music

• Folk and popular music have currently seen a rise of the chanson and cabaret style
• France is the 5th largest market by value in the world. Its music industry has produced many internationally known artists, such as Stromae, Edith Piaf (from la vie en rose), Patricia Kaas, Davidx Guetta, or Coeur de Pirate
• Popular Styles: Cabaret, Musette, Cancan, Chanson, Yeye, pop, rock, electronic. 

Food

Some traditional and popular meals are: Soupe à l'oignon, wine, cheese, Boeuf bourguignon, chocolate souffle, flamiche, confit de canard, salade nicoise, ratatouille, and tarte tatin.

Major religions and/or spiritual beliefs

Most Frenchpeoples believe strongly that religion is a private matter and shouldn't spread in the public sphere. Not having a religion at all, on the other hand, is regarded as suspicious. 

The major religion is Catholic. However, Catholicism in France is more of a tradition.

National Holidays and traditional customs

Easter

Fete du Travail- May 1

Bastille Day- July 14

The Assumption long Weekend- Aug 15

All Saints Day-Nov 2

Christmas - Dec 25

Popular TV shows or movies (and popular stars)

TV Shows:

• Spiral
• Braquo
• Engrenages
• Borgia
• Les Revenants
• Un Village Francais
• Inquisito
• Pigalle, La Nuit

Popular TV Stars

• Adel Bencherif
• Adeyto
• Adrien Theaux
• Adolphe Menjou
• Agathe de la Boulaye
• Agathe Natanson
• Alain Delon

Online news sources

France24

World newspapers

France local news in English

French world news

Online forums for expatriates

France expatriates forums

international community of expatriates

expat France community for expatriates in France

Type of Government

France is a Semi-Presidential Republic – it has both a President and a Prime Minister. The Head of this government is the Prime Minister Jean-Marc Ayrault. The Head of the State is President Francois Hollande.

France is a republic; the institutions of governance are defined by the Constitution of the Fifth Republic. The fifth republic was established in 1958. The President appoints a prime minister (currently - 2012 - Jean-Marc Ayrault) , who forms a government 

Sources

Wikipedia.com

expatica.com

Askafrenchman.net

france.fr

frenchculture.org

ranker.com

Google.com

mapsofworld.com
about-france.com

Reinventing the Bazaar Chapter 1

1. What does the author see as the defining characteristics of a market? Select a quote (or quotes) from the text as evidence of his view.

McMillan described 4 defining characteristics of a market, purchase/sale, decision making/comptetition, flow, and rules/government. 

Purchase/sale

"A market for something exists if there are people who want to buy it and people who want to sell it"(5) By the definition that McMillan provides, a market is a meeting together of people for the purpose of trade by private purchase and sale.

Decision making/competition

"Decision-making autonomy is key. Participation in the exchange is voluntary; both buyer and seller are able to veto any deal..... they are free to make decisions-to buy, to sell, to exert effort, to invest- that reflect their own preferences." (5) The freedom to make decisions is further highlighted by the quality of competitiveness that markets presents: "descion making and comptetition, established rules. customs and spread of culture comptetition curbs any individual participant's power and, in most markets, prevents anyone from having a decisive effect on overall outcomes." (6)

Flow

Two qualities that McMillan describes as necessary for a successful market is communication and trust. In his words,  "a market works well only if information flows smoothly through it" (10) and "a market works well only if people can trust each other" (10)

Rules/Government

Finally, McMillan states that all successful markets must have an established set of laws for the participants to follow, without these, the market may become corrupt, or malfunction.
"Some pieces of a market's design are devised by the market participants themselves; other pieces are devised by the government...a basic part of the government's role in market desing is defining property rights" (12)

2. McMillan writes, "Markets provoke clashing opinions. Some people revile them as the source of exploitation and poverty. Others extol them as the font of liberty and prosperity" Have you observed these kinds of opinions? What might cause some people to distrust markets? What might cause other people to distrust government control over economic decisions? Do you personally lean one way or the other?

When I think of markets, I think of the local market from my hometown in Atlixco, Mexico. Every morning, this market grows to become the heart of the town. It crosses over four blocks, and sells everything from electronics to flowers. Because of my experience with this market I am probably biased in my opinion, which is that markets are the front of liberty and prosperity. I am aware that markets can be either beneficial or harmful to the parties involved. However, the majority of my experience with markets (digital and physical) has always been beneficial. McMillan says, "barganing power between buyer and seller is sometiems quite unequal. being able to veto any deal does convey some barganing power, but not necessairly much. Nevertheless, the opportunity to agree to an exchange or to decline it is a kind of freedom." (6)I believe that the equality between those involved in a market transaction is responsible for the mistrust of markets. On the other hand, the opportunity to control your buys and sells, as well as the freedom that a market presents is the reason that people may distrust control over economic decisions. In his book, McMillan states that a market seems to take a mind of its own. If a party has that perspective of a market, it is understandable that they wouldn't want a different force controlling it. 

3. McMillan uses folk football as an analogy for a completely lawless market and claims that modern markets are governed by rules (as are the modern sports of soccer, rugby, and American football.) What market rules would you say are important for modern markets? Why? 

 

As stated in his key characteristics of a market, rules are vital to the survival and efficiency of a market. An interesting aspect of today's modern technology is that markets are no longer a physical place people go to shop. When considering the vital rules for modern markets, one must consider digital markets as well. I believe that the key rules would have to lay out a groundwork of trust, not just for the customers, but for the sellers as well. This may include a prevention of violence, an equal exchange with the least corruption, the lowering of transaction costs, and the protection of the goods. As said above, a market will only work if there is trust amongst those involved.

Why did Human History Unfold Differently on Different Continents for the Last 13000 years?

Article: http://edge.org/conversation/why-did-human-history-unfold-differently-on-different-continents-for-the-last-13000-years

a. Identify Diamond's major themes and key points

 Jared Diamond begins his article with a question that seems to encompass his article: Why did history take such different evolutionary courses for peoples of different continents? Diamond explores the reasons that people of different regions seemed to have thrived throughout history whilst others haven't.  Diamond highlights the fact that throughout the ages, people of certain locations seemed to have greater evolved in their use of tools and technologies while other people, of less advanced locations still worked with primitive tools and habits. He focuses on how the advances of certain peoples seems to be related to the location of said people. Diamond implies that differences in geography and location not only initiates differences in advancements, but also helps increase development in a way that makes the growth of inequalities increase much faster than other locations and peoples.

key points: 

• the importance of location 
• the reasons certain locations advanced faster
• the growth of inequalities as they relate to location and advancement 
• the idea of history as a science
• biogeographic differences
• domestication

b. What does he identify as the most important determinants to a society's success? 

Diamond focuses his article on two aspects that determined a society's success: domestication of animals and plants and isolationism, as well as the aspects that these instigated.

Domestication of animals and foo

Eurasia had more domesticated plants than any other continent, therefore Eurasia had more "food per acre" than any other place. This enabled Eurasia to not only have a greater population density, but also to expand the progression of its people. Whereas the people of other areas spent most of their time on harvesting and procuring nutrition, the peoples of Eurasia began to expand its technologies and to expand knowledge such as reading and writing, which later proved to be a great advantage as the peoples of the old world could spread accurate detailed information among each other. The domestication of food also instigated political organization as well as the domestication of animals. The location of Eurasia also had a greater advantage since there were more mammals there than any other area. The close proximity to animals also proved to be a biological advantage as the people of Eurasia developed immunities to diseases related to animals that were before unknown to other areas of the world.

Isolation

In a couple of paragraphs, Diamond uses Australia and Tasmania to explain that the isolation and forced small population of certain societies can be a great disadvantage. In less isolated areas, the rate of human invention is faster, and said inventions are have a higher rate of acceptance and usage in areas of greater population. Less isolated areas also have a slower rate of cultural loss, which is also a factor that Diamond uses as a determinant to a society's success.

c. How can these ideas be applied to today's global economy?

I think there are two ways that Diamond's ideas and thesis could be applied to today's global economy, development and globalization. One of Diamond's key points what the biogeological differences between continents and how these differences affect the development of the societies within. Through the lense of economics, one can clearly see these differences in between developed and undeveloped countries. The economics of a third-world country is extremely different than that of a first-world country, yet these two have found many relations, which brings us to the second idea, globalization. In terms of history, globalization is a new revolution that has changed the economics of every country and every society within. Diamond speaks of the lack of weapons, foods, animals, or technologies in some areas, and the disadvantages that this lack posed. Globalization, and the use of finances and money, has changed that lack of advances. How would our history be different had we had globalization during the colonization of the lands?