Reflection on Economics for Global Travelers Class

I learned a lot about a few of the basic economic concepts. I learned about supply and demand and currency exchange.  I also learned that despite the distance and language barrier between nations, we are all connected and can have a great economic impact on one another. The complete understanding of GDP and international trade will be the most directly applicable to understanding how the world works. With the technological advances of today and the future advances to come, the world is growing closer and it is necessary to understand trade. I would like to learn more about the long term factors affecting currency. I would like to understand more about the overall impact currency has on the world. I would also like to finish reading the McMillan book, since the book provides examples of many economic topics.

To future students looking to take economics for global travelers, I would suggest reading the book. The book has many examples to help understand the topics. Also, prepare to do research and finding reliable resources.

Scotland New's Article #5

Currency boost

There is a lot of controversy surrounding Scotland's independence referendum. Scotland is receiving support from multiple countries. Hong Kong is a great supporter of Scotland becoming independent from the United Kingdom. Hong Kong money changers have been trying to predict whether or not to invest in the Scottish pound. Lately, Hong Kong money changers have offered 11.50 Hong Kong dollars for a Scottish pound, but 11.30 for an English pound. I it believed that Scotland's economy is a strong contributor to the strength of the Sterling. It is a major concern for the UK if Scotland becomes independent and change their currency. The currency used in Scotland consists of British pounds, but  most Scottish banks print their own versions. Most of the Scottish banknotes circulating are accepted throughout Britain.

Currency used varies from place to place; which is why there are currency exchange rates. Currency exchange rates greatly depends on the number of imports and exports and the demand for the Sterling pound. If Scotland were to switch to become independent and their economy was to boost, their exchange rate could also increase. The Hong Kong money changers who purchased Scottish banknotes beforehand could make a large profit. 

Independence is not a new desire for the Scottish. Today, the fight for independence is greatly focused on Scotland's futre economic growth. A resolution could be voting yes for independence, which has the potential to boost Scotland's economic growth and greatly increase their trade with other countries. A decision needs to be made before policies and resolutions can be determined.

Perth, City Analysis

The 'Gateway to the Highlands'

According to the Central Place Theory, Perth would be considered a relatively large town in Scotland located on the banks of the River Tay. Classically, Perth has been a city. In the late 1990s, the definition of a city was re-examined by Her Majesty's Government and on the official list of the cities in Scotland, Perth was omitted. On March 12, 2012, Perth's city status was reinstated, making it Scotland's seventh city.

As of 2010, the population was estimated to be 45, 770. Near Perth is Dundee, a relatively large city (not a regional city) with a population of 144, 170. Also, near Perth is Glenrothes, a town with a population of 38, 940.

Perth has a small airport, Perth Airport, located at New Scone. This airport offers pilot training and private aircrafts, which would not be available in a smaller place. This airport does not offer commercial  flights out, which would be offered in a larger city or Regional city such as Glasgow.

Vehicle Market Executive Summary

Scotland's economy is booming and is only expected to grow. Scotland has a relatively high GDP for a low population density. Based on statistical analysis of preferred modes of transportation and currently availability to vehicles, the potential to sell any type of vehicle in Scotland is very low. The average Scottish person can afford a four-door sedan, but the number of newly registered vehicles has decreased by 3.1% since 2001. Also, Scotland is currently home to many well-established scooter and car dealerships and businesses that offer limousine services.

Despite the ease of shipping and transporting cars to Scotland, the potential to sell scooters, sedans or limousines is very low because of pre-existing automotive businesses and current economic trends. In September 2014, this could change if Scotland becomes independent. If Scotland were to become independent, their economy would grow rapidly.

Scotland News Article #4

Independence

On September 18, 2014, the Scottish Government plans to hold an independence referendum. This event takes place over a year from now, but it is on everyone's mind. There are many concerns about whether or not Scotland can survive independently from the United Kingdom. Scotland's prospective economic standing after independence is a major concern. The Scottish government recently published a paper entitled "Scotland's Economy: The case for Independence"that is an economic case for independence. The paper attempted to prove that Scotland can not only afford to be an independent country, but also has a greater potential for success. 

Everyone's standards differ. The paper says "By international standards Scotland is a wealthy and productive country. There is no doubt that Scotland has the potential to be a successful independent nation." That is based on "international standards," not the Scottish standard. A vast majority of the Scottish population might not believe that Scotland is wealthy or that independence will strength the economy. If Scotland were to become independent, they would be faced with the decision of whether or not to keep the same UK standards or develop a few of their own.

Independence is not a new idea for the Scottish. Today, the fight for independence is due to the desire for economic growth. A resolution could be voting yes for independence. A decision needs to be made before policies and resolutions can be determined.

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

A selection that I found most interesting was when Levinson explained the amount of planning that goes on before the containers are placed on the ship. I figured that technology would play a crucial role is making the process of switching the cargo from land to ship, but I did not consider all of the programming done in advance. Every move made was "choreographed by a computer." I can understand now how computers have helped to make the process efficient and almost instantaneous. I also found it interesting that the most expense part of the process of transporting goods is shifting the cargo from land to ship. The total port cost accounts for approximately 50% of the total expense for transportation.

"The container is at the core of a highly automated system for moving goods from anywhere, to anywhere, with a minimum of cost and complication."

The author sees the development of the shipping container as a major contributor to globalization. The use of containers reduced the cost of shipping and made the process of transportation more efficient. The containers allowed countries to buy products from other countries at a moderate price. The distance ca be great, but the containers allows for products to be refrigerated. Overall, the containers allowed for a safer and more organized way of transporting good.

The transformation of global transportation has many positive and negative effects. The consumers gain a wide variety of products at lower prices. The business that can afford to have products made in other countries gain a larger profit margin. The local business that cannot afford to have products made at lower costs lose business. The consumers who are workers have to deal with competition and risk losing their jobs to laborers willing to work for less. Overall, this transformation of global transportation has allowed many to prosper, but it has also put some individuals livelihood at risk.

Scotland News Article #3

Independence!

Scotland is a country that is part of the United Kingdom. On September 18, 2014, the Scottish Government plans to hold an independence referendum. There are many concerns, but the biggest is related to the currency. There are three options proposed, including retaining Pound Sterling, switching to the Euro or adopting a separate Scottish Currency. Scotland is in the "Sterling Zone," so retaining the Pound Sterling would be the best option because it offers flexibility. Independence will allow the Scottish to have more control over their revenues. 

This relates to a few topics discussed in class, but the most relevant is the discussion on GDP. It is believed that Scotland will be better able to prosper independently. Most of the Scottish are looking to have full control of their revenues, which would build a stronger economy. "Scotland's finances are consistently stronger than the UK's,"and they have had a lower fiscal deficit for the past five years. Economically, Scotland is in a great place to become independent. If the Scottish are successful, they could have up to 1.5 trillion pounds just from oil and gas reserves.

The issue of independence has been around for a very long time. The cause of the fight for independence varies from person to person, but overall it could be due to the desire for economic growth. The majority of the parliament, needs to vote yes, in order for this to be passed. A resolution needs to be decided among the Scottish, since it is their independence being fought for.