Original Article: http://blogs.wsj.com/source/2012/06/01/jubilee-will-lengthen-u-k-recession/
As Britons celebrate Queen Elizabeth II's 60 years on the throne with one extra holiday, the UK economy is likely to suffer from this day off. Although national holiday usually boosts consumption, the fact that national output will come to a stop for the day exerts exceptional pressure on the GDP for the second quarter. Furthermore, some factories, especially smaller ones, are likely to shut down for up to a week. The significant loss on output will negatively influence the GDP calculation for the second quarter and leave it very little time to recover. As can be expected, a bad quarterly GDP number will dampen market confidence, discouraging business from expanding and households from consuming. This will be likely to further decrease the GDP value for the year. As the UK has unexpectedly returned to recession in the first quarter of 2012, this blow will be vitally destructive as UK strives for a recovering economy.
Tuesday, June 5, 2012
9th Week Post on Economics News about the UK
Original Article: http://www.nytimes.com/2012/06/05/business/global/nervous-europeans-snap-up-london-property.html?_r=1&src=me&ref=business
As is reported by the New York Times, foreign investors, particularly European investors, are flooding into the prime real estate industry in London. With a deteriorating economy in the Euro Zone, European investors are seeking safe shelter to preserve the value of their wealth. Among all options, with a relatively stable economy and averagely high value of prime property, expensive London flats are favorite with most investors. The tremendous capital inflow infers a trade deficit in the UK. This can be proved by looking at the national accounting equation, Y = C + I + G + NX. (Y - C - G) refers to national saving, and (Y - C - G) - I is the difference between saving and investment. Capital inflow implies net foreign borrowing. That means saving is less than investment; equivalently, (Y - C - G) - I < 0. Since (Y - C - G) - I = NX, we have NX < 0. Therefore, export is smaller than imports; the UK is having a trade deficit. This can be verified by looking at the international trade data for the UK. The most recently published government information indicates a trade deficit of 2.7 billion pounds in March. The gap between exports and imports can be exacerbated as the increasing demand for British Pounds increases the value of GBP, leading to more expensive British goods and declining exports.
As is reported by the New York Times, foreign investors, particularly European investors, are flooding into the prime real estate industry in London. With a deteriorating economy in the Euro Zone, European investors are seeking safe shelter to preserve the value of their wealth. Among all options, with a relatively stable economy and averagely high value of prime property, expensive London flats are favorite with most investors. The tremendous capital inflow infers a trade deficit in the UK. This can be proved by looking at the national accounting equation, Y = C + I + G + NX. (Y - C - G) refers to national saving, and (Y - C - G) - I is the difference between saving and investment. Capital inflow implies net foreign borrowing. That means saving is less than investment; equivalently, (Y - C - G) - I < 0. Since (Y - C - G) - I = NX, we have NX < 0. Therefore, export is smaller than imports; the UK is having a trade deficit. This can be verified by looking at the international trade data for the UK. The most recently published government information indicates a trade deficit of 2.7 billion pounds in March. The gap between exports and imports can be exacerbated as the increasing demand for British Pounds increases the value of GBP, leading to more expensive British goods and declining exports.
8th Week Post on Economics News about the UK
Original Article: http://www.bloomberg.com/news/2012-06-04/german-2-year-yield-drops-below-zero-as-crisis-deepens.html
Spanish bond yields rose as the Spanish Prime Minister urged European leaders to protect banks in the Euro zones. The rising bond returns signal a stabilizing Spanish bond system. Further, a falling unemployment rate in Spain boosts market confidence. Consequently, it is expected that investor confidence on the Spanish economy will be slightly gained back upon the promising economic indicators. A most direct effect over the British economy will be that, as Spanish bond yields go up, investors will direct their capitals into Spain, which will reduce investment on British bonds. As a result, the demand for British pounds will go down, leading to British Pounds depreciation. The change in British Pounds value will in turn influence trades between the UK and other countries in the world.
Spanish bond yields rose as the Spanish Prime Minister urged European leaders to protect banks in the Euro zones. The rising bond returns signal a stabilizing Spanish bond system. Further, a falling unemployment rate in Spain boosts market confidence. Consequently, it is expected that investor confidence on the Spanish economy will be slightly gained back upon the promising economic indicators. A most direct effect over the British economy will be that, as Spanish bond yields go up, investors will direct their capitals into Spain, which will reduce investment on British bonds. As a result, the demand for British pounds will go down, leading to British Pounds depreciation. The change in British Pounds value will in turn influence trades between the UK and other countries in the world.
Thursday, May 31, 2012
Course Reflection
Though considered the most basic common sense for anyone who studies economics, I never stop finding the supply - demand model to be highly useful in interpreting how the world functions. Supply and demand in the market for goods and services have a direct and fundamental influence over the prices and quantity. Furthermore, supply and demand are highly applicable in markets outside goods and services. In the labor market, foreign exchange market and loanable funds market, the way these markets function is simply supply and demand in disguise. Wage rate, exchange rate and interest rate are essential the same as price for physical goods in their respective models. The supply - demand model can be used to explain so many economic activities that one can never overestimate its value.
I would be interested in gaining a more in-depth exposure to the cultural differences between countries, such as how people converse and how they cope with ambiguity. This will be valuable human-focused knowledge, as is different from the technical-oriented models and equations that I am familiar with.
For any students who are considering taking the class, it is advised that they grow into the habit of pondering over an economic issue and trying to interpret a single issue from different angles. I find it highly helpful to constantly try to understand the economic news using the concepts we learned (or reviewed) in class. It brings everything I have learned into real-life application as opposed to textbook examples. I find myself a more mature critical thinker after this course, rather than merely good at models and math. Consequently, I highly suggest a serious student to keep thinking economically, whether it be class reading or world news. Exercises of this sort hone the brain.
I would be interested in gaining a more in-depth exposure to the cultural differences between countries, such as how people converse and how they cope with ambiguity. This will be valuable human-focused knowledge, as is different from the technical-oriented models and equations that I am familiar with.
For any students who are considering taking the class, it is advised that they grow into the habit of pondering over an economic issue and trying to interpret a single issue from different angles. I find it highly helpful to constantly try to understand the economic news using the concepts we learned (or reviewed) in class. It brings everything I have learned into real-life application as opposed to textbook examples. I find myself a more mature critical thinker after this course, rather than merely good at models and math. Consequently, I highly suggest a serious student to keep thinking economically, whether it be class reading or world news. Exercises of this sort hone the brain.
Wednesday, May 23, 2012
Response of "Beware of Greeks Bearing Bonds"
Original Article: http://www.vanityfair.com/business/features/2010/10/greeks-bearing-bonds-201010
The passage that I have found particularly interesting is the author's discussion on how Greeks find it difficult to compliment other Greek's successes. Indeed, by the author's account, it is almost impossible for Greeks to view the success of their fellow men without suspicion of misconduct and bribe. There has been such mistrust among the Greek people that everyone is devoted to the pursuit of self-interest and self-interest only. This relates later to the infamous Vantopaidi scandal. The public criticism is highly concentrated on the group of monks who have manipulated the Greek government to obtain wealth because, as the author put it, "some outside party...comes in and exploits and corruption of their system. Enter the monks." Given such a high emphasis on self-interest by a nation, it can be expected that even the seemingly holiest group intends to squeeze wealth with deceptive scheme. Further, with a nation that has such inclination to doubt and reproach others and detect no fault with themselves, it comes as no surprise that the country will lay blames on a single group of monks without reservations. This cultural traits of the Greek nation has somehow explained the scandal from the roots.
Although the Greek economy is nothing but small compare to the other European Union countries, crisis in Greek is expected to threatens the whole Euro Zone. Sharing currency, the Euro Zone is more mutually integrated than any other countries in the world. If Greek defaults, which naturally dampen investors' confidence in the European economy, foreign investors will withdraw their investment in Europe and domestic investors will move their assets abroad to preserve their wealth's value. As a consequence, the aggregate demand for Euro will decrease, and a weaker currency will negatively influence all countries in which the currency is in circulation.
The National Income is consisted of consumption, investment, government expenditure and net export. As the Greek government cut government spending, the National Income will decrease rather than increase. Further, an increase in taxes will reduce Greek household's income, which in turn decrease consumption. Thus, the measure in fact will do no good in bringing up the country's GDP.
The passage that I have found particularly interesting is the author's discussion on how Greeks find it difficult to compliment other Greek's successes. Indeed, by the author's account, it is almost impossible for Greeks to view the success of their fellow men without suspicion of misconduct and bribe. There has been such mistrust among the Greek people that everyone is devoted to the pursuit of self-interest and self-interest only. This relates later to the infamous Vantopaidi scandal. The public criticism is highly concentrated on the group of monks who have manipulated the Greek government to obtain wealth because, as the author put it, "some outside party...comes in and exploits and corruption of their system. Enter the monks." Given such a high emphasis on self-interest by a nation, it can be expected that even the seemingly holiest group intends to squeeze wealth with deceptive scheme. Further, with a nation that has such inclination to doubt and reproach others and detect no fault with themselves, it comes as no surprise that the country will lay blames on a single group of monks without reservations. This cultural traits of the Greek nation has somehow explained the scandal from the roots.
Although the Greek economy is nothing but small compare to the other European Union countries, crisis in Greek is expected to threatens the whole Euro Zone. Sharing currency, the Euro Zone is more mutually integrated than any other countries in the world. If Greek defaults, which naturally dampen investors' confidence in the European economy, foreign investors will withdraw their investment in Europe and domestic investors will move their assets abroad to preserve their wealth's value. As a consequence, the aggregate demand for Euro will decrease, and a weaker currency will negatively influence all countries in which the currency is in circulation.
The National Income is consisted of consumption, investment, government expenditure and net export. As the Greek government cut government spending, the National Income will decrease rather than increase. Further, an increase in taxes will reduce Greek household's income, which in turn decrease consumption. Thus, the measure in fact will do no good in bringing up the country's GDP.
Monday, May 21, 2012
7th Week Post on Economics News about the UK
Original Article: http://www.businessweek.com/news/2012-05-16/u-dot-k-dot-unemployment-unexpectedly-falls-in-stabilization-sign
The unemployment rate in the United Kingdom as measured by International Labour Organization methods demonstrates decline in the first quarter of the year. The newly published figure is 8.2 percent, as compared to a 8.3% at the beginning of 2012. Jobless-benefit claims also fell by 13,700 from March. Compared with what the Bank of England had predicted before, the growth in the job market is still weak. Yet, the data have delivered a promising signal that the UK is recovering, though at a relatively slow rate, from the crisis, as is shown by an increasingly stable labor market. As a positive consequence, firms are encouraged to expand business with the sound economic data and to increase investment. With rising confidence from firms, it is expected that firms will expand hiring and provide more jobs in the market. It is also hoped that a stable economy will attract more foreign firms to establish business within the UK and thus, provide more employment. However, the recent negative news with regard to the Greek exit from the Euro Zone has raised concern within the UK borders. Multinational companies that have a significant volume of trades with the Euro Zone are specifically concerned with the outcome of the incident, since exports to Europe are predicted to decline as its economic prospect deteriorates. It is anticipated that the new Euro Zone financial hit will have a consequential influence over the British economy, especially that firms in the exporting industry are likely to cut employment as a response to the ambiguity in the European economy. This will again strike the job market in UK negatively.
The unemployment rate in the United Kingdom as measured by International Labour Organization methods demonstrates decline in the first quarter of the year. The newly published figure is 8.2 percent, as compared to a 8.3% at the beginning of 2012. Jobless-benefit claims also fell by 13,700 from March. Compared with what the Bank of England had predicted before, the growth in the job market is still weak. Yet, the data have delivered a promising signal that the UK is recovering, though at a relatively slow rate, from the crisis, as is shown by an increasingly stable labor market. As a positive consequence, firms are encouraged to expand business with the sound economic data and to increase investment. With rising confidence from firms, it is expected that firms will expand hiring and provide more jobs in the market. It is also hoped that a stable economy will attract more foreign firms to establish business within the UK and thus, provide more employment. However, the recent negative news with regard to the Greek exit from the Euro Zone has raised concern within the UK borders. Multinational companies that have a significant volume of trades with the Euro Zone are specifically concerned with the outcome of the incident, since exports to Europe are predicted to decline as its economic prospect deteriorates. It is anticipated that the new Euro Zone financial hit will have a consequential influence over the British economy, especially that firms in the exporting industry are likely to cut employment as a response to the ambiguity in the European economy. This will again strike the job market in UK negatively.
Sunday, May 20, 2012
6th Week Post on Economics News about the UK
Original Article: http://www.nytimes.com/2012/05/18/business/global/chance-of-greece-exiting-euro-grows.html?pagewanted=all
A possible Greek exit from the Euro Zone has recently raised international alarm to the well-being of the Euro Zone financial system. It has been observed that if Greece departs from the Euro Zone, the international fear on whether Europe will survive the crisis as a whole will once again be aggravated. It can be expected that investment in the Europe will decline; depositors will withdraw their money from the European firms and banks. The most direct result will be a significantly weaker currency. International trades will be influenced as a result of the change in capital flows. For United Kingdom, a stronger GBP will decrease British exports and increases imports from Europe, since the British goods have become relatively expensive and European goods relatively cheap. Thus, the net export sector in the UK GDP will decline. Given that the Euro Zone is one of the biggest trading parties with the UK, this financial turmoil in Europe is expected to exert significantly negative effect on the British economy.
A possible Greek exit from the Euro Zone has recently raised international alarm to the well-being of the Euro Zone financial system. It has been observed that if Greece departs from the Euro Zone, the international fear on whether Europe will survive the crisis as a whole will once again be aggravated. It can be expected that investment in the Europe will decline; depositors will withdraw their money from the European firms and banks. The most direct result will be a significantly weaker currency. International trades will be influenced as a result of the change in capital flows. For United Kingdom, a stronger GBP will decrease British exports and increases imports from Europe, since the British goods have become relatively expensive and European goods relatively cheap. Thus, the net export sector in the UK GDP will decline. Given that the Euro Zone is one of the biggest trading parties with the UK, this financial turmoil in Europe is expected to exert significantly negative effect on the British economy.
Monday, May 14, 2012
Vehicle Market Executive Summary
With a huge population, a significant GDP growth rate and a
low car ownership, China is recommended as a targeting market for the global
vehicle producer. Provinces like Guangxi and Guizhou are the most appropriate
market for scooters, given the low income and laxer motorcycle regulation.
Developed eastern cities like Guangdong and Tianjin will be the targeting
market for four-door sedan, since the average income and the need for cars are
high in these areas. The best market for luxury limousine is a national
metropolis such as Shanghai and Beijing, which has the largest number of multimillionaires
and company headquarters. Container ships will be the most convenient means to
transport the vehicles, especially because most of the targeting markets are
close to ports. While doing business in China, it is worth noting the severe
corruption problem and the importance of networks in the Chinese hierarchy
system.
Thursday, May 10, 2012
5th Week Post on Economics News about the UK
Original Link: http://www.bloomberg.com/news/2012-04-12/u-k-trade-gap-widened-as-car-exports-dropped-to-u-s-china.html
Reported by the Bloomberg, the U.K. has seen a widening trade deficit in the first quarter of the year, especially as the car exports to the U.S. and China drops. Given a weak domestic economy, with a high rate of unemployment and rising inflation, the U.K. is hoping to boost its economy with expanding exports. However, its trade with countries outside the European Union has not demonstrated promising outcome. Prime Minister David Cameron has come to Asia in April in an attempt to boost commercial ties with the region.
The declining exports are attributed to a weak global economy, with the demand on the cars and heavy machinery market shrinking. In addition, starting from the beginning of 2012, the GBP has appreciated against the USD consistently, from below 1.53 GBP/USD to its current level of around 1.6155 GBP/USD. A stronger GBP tenders british goods more expensive, which reduces demand from foreign consumers and thus, exports.
Reported by the Bloomberg, the U.K. has seen a widening trade deficit in the first quarter of the year, especially as the car exports to the U.S. and China drops. Given a weak domestic economy, with a high rate of unemployment and rising inflation, the U.K. is hoping to boost its economy with expanding exports. However, its trade with countries outside the European Union has not demonstrated promising outcome. Prime Minister David Cameron has come to Asia in April in an attempt to boost commercial ties with the region.
The declining exports are attributed to a weak global economy, with the demand on the cars and heavy machinery market shrinking. In addition, starting from the beginning of 2012, the GBP has appreciated against the USD consistently, from below 1.53 GBP/USD to its current level of around 1.6155 GBP/USD. A stronger GBP tenders british goods more expensive, which reduces demand from foreign consumers and thus, exports.
Wednesday, May 9, 2012
Response on Information Wants To Be Free
The passage that I find most interesting in the reading is on how book prices listed by multiples of websites still differ even though the Internet has rendered the searching costs nearly zero, and prices are expected to be the same for identical product. The author attributes this phenomenon to the concern about quality, which is an implicit application of need for information. Given the lacking knowledge on the quality of the same product from different sellers, consumers are willing to pay higher prices in order to obtain the product with the highest quality from the most trust-worthy provider. The differences in the product quality has made the supposedly-identical product differentiable, as an indirect result of lack of information. This idea exceedingly appeals to me, since it resolves my long-standing puzzle about the continuous difference in prices for a same good in such a nearly perfectly competitive market as the Internet. This is definitely a most reasonable explanation for my question.
By transaction cost, the author refers to the costs incurred by consumers to search for the lowest price. For example, without knowledge on the price of a laptop computer on average, consumers will have to do research before they can land a seller who offers the computer at the lowest price. The searching process takes time and money. This comes to the consumers as a transaction cost.
When information is unevenly distributed, sellers are able to charge the buyers a higher price for the goods they are selling, because the buyers are not able to compare prices in the market, unless they pay the transaction costs. This makes the sellers a winner in the trade, because they gain higher revenue from every single buyer. In return, buyers lose in the trade, since they are forced to pay a higher price, given the lack of information.
By transaction cost, the author refers to the costs incurred by consumers to search for the lowest price. For example, without knowledge on the price of a laptop computer on average, consumers will have to do research before they can land a seller who offers the computer at the lowest price. The searching process takes time and money. This comes to the consumers as a transaction cost.
When information is unevenly distributed, sellers are able to charge the buyers a higher price for the goods they are selling, because the buyers are not able to compare prices in the market, unless they pay the transaction costs. This makes the sellers a winner in the trade, because they gain higher revenue from every single buyer. In return, buyers lose in the trade, since they are forced to pay a higher price, given the lack of information.
Friday, May 4, 2012
Response to A Fez of the Heart
The passage that I found most interesting is the one where the author described the contrasting attitudes between the old associate and the younger sales person to the Fez. Evidently, the young man was embarrassed by the fact that they were selling something as uncool as Fez; however, the associate from the older generation was apparently more attached to the old-fashioned hat. This strikes significantly as the confusion some young people in China are going through, where they are overly proud to claim themselves westernized and at times despise our own magnificent Chinese culture. This is a loss of self-identity in cultural invasion.
As the world becomes increasingly integrated, opportunities are more abundant for economic growth of countries. However, globalization also brings culture spreading, which can be both virtuous and vicious. As is illustrated by the development of tourism in the article, Pomegranate has gone through successful economic development as their tourism industry thrives. However, they also lose their own cultural identity and tradition in the process, as foreigners bring in social norms and values that are highly distinct from their own. To some extent, there exists a trade-off between economics and culture.
For the United Kingdom, London is one of the leading destinations for tourists. As the capital of the country, London has a significant number of historical buildings that are highly worth visiting. It also has a vitally developed cultural industry, specifically the WestEnd theaters, that attracts tourists from around the world.
As the world becomes increasingly integrated, opportunities are more abundant for economic growth of countries. However, globalization also brings culture spreading, which can be both virtuous and vicious. As is illustrated by the development of tourism in the article, Pomegranate has gone through successful economic development as their tourism industry thrives. However, they also lose their own cultural identity and tradition in the process, as foreigners bring in social norms and values that are highly distinct from their own. To some extent, there exists a trade-off between economics and culture.
For the United Kingdom, London is one of the leading destinations for tourists. As the capital of the country, London has a significant number of historical buildings that are highly worth visiting. It also has a vitally developed cultural industry, specifically the WestEnd theaters, that attracts tourists from around the world.
Monday, April 30, 2012
Review on Rivoli's Book Part II
The textile industry in the world went from the United Kingdom to the United States, then to Japan, to Southeast Asian countries such as South Korea and Hong Kong, and finally to China. All in all, the locations of the textile factories always move to the countries where the labors are the cheapest. This demonstrates that given perfect mobility between countries, industries generally flow to the countries where the major inputs are abundant and cheap.
Industrialization has provided people a better living standard through higher productivity. With lower production costs and subsequently lower prices, goods are more affordable for most people. Also, jobs in the urban areas are generated. As a result, people living in the rural countrysides are able to move to the urban area, land a job and earn a living. For most of the young girls living in rural areas of China described in the book, this is one of their few opportunities to live a different life from their parents and grandparents. However, industrialization also brings in the problem of poor working and living condition, as a consequence of the race to the bottom. Many firms remain competitive in the market by urging workers to work long hour and allowing few breaks, as is demonstrated by the sweatshop stories from China, where "young women are forced to work seven days a week, 12 hours a day, earning as little as 12 to 18 cents an hour". This inhumanely severe working condition has called general attention as to the well-being of the workers. Viewing both the positive and negative sides of industrialization, I am convinced that industrialization is beneficial to the society in general, since it improves the total productivity and thus people's living standard. Yet, it requires a stronger regulation from the government as to the labor's rights. This can be achieved by formulating stricter regulation or by providing incentives for firms.
The most informative part that I have found in Part II of Rivoli's book is The Unwitting Conspiracy, where the author argues that industrialization, while providing poor working and living conditions for the workers, has given rise to people's awareness of work safety and labor's rights. Additionally, it is industrialization that has brought the environment issues into public attention. Meanwhile, winners of the globalization, that is, wealthy people, demand a cleaner environment; this leads to efforts of protecting the environment. I found this highly interesting since labor activists and environmentalists are generally considered to be indignant protestors against production pollution. The argument that the inter-reaction between producers and protestors has provided working classes better working place reveals that no progress in human history is made by a sole force. It is always joint efforts that fuel the development of human history. Further, industrialization cannot be deemed as absolutely virtuous or vicious. This is an innovative yet more objective way to view the history of economic development, which I find highly educative and inspiring.
Industrialization has provided people a better living standard through higher productivity. With lower production costs and subsequently lower prices, goods are more affordable for most people. Also, jobs in the urban areas are generated. As a result, people living in the rural countrysides are able to move to the urban area, land a job and earn a living. For most of the young girls living in rural areas of China described in the book, this is one of their few opportunities to live a different life from their parents and grandparents. However, industrialization also brings in the problem of poor working and living condition, as a consequence of the race to the bottom. Many firms remain competitive in the market by urging workers to work long hour and allowing few breaks, as is demonstrated by the sweatshop stories from China, where "young women are forced to work seven days a week, 12 hours a day, earning as little as 12 to 18 cents an hour". This inhumanely severe working condition has called general attention as to the well-being of the workers. Viewing both the positive and negative sides of industrialization, I am convinced that industrialization is beneficial to the society in general, since it improves the total productivity and thus people's living standard. Yet, it requires a stronger regulation from the government as to the labor's rights. This can be achieved by formulating stricter regulation or by providing incentives for firms.
The most informative part that I have found in Part II of Rivoli's book is The Unwitting Conspiracy, where the author argues that industrialization, while providing poor working and living conditions for the workers, has given rise to people's awareness of work safety and labor's rights. Additionally, it is industrialization that has brought the environment issues into public attention. Meanwhile, winners of the globalization, that is, wealthy people, demand a cleaner environment; this leads to efforts of protecting the environment. I found this highly interesting since labor activists and environmentalists are generally considered to be indignant protestors against production pollution. The argument that the inter-reaction between producers and protestors has provided working classes better working place reveals that no progress in human history is made by a sole force. It is always joint efforts that fuel the development of human history. Further, industrialization cannot be deemed as absolutely virtuous or vicious. This is an innovative yet more objective way to view the history of economic development, which I find highly educative and inspiring.
Friday, April 27, 2012
Response to "The World is Spiky"
Original Article: http://creativeclass.com/rfcgdb/articles/other-2005-The%20World%20is%20Spiky.pdf.
The author believes that while globalization has increased the returns to innovation, which is the engine for economic development, through allowing innovative products and services to quickly reach consumers worldwide, it has increased the spikiness of wealth and economic production. Thus, although the world's economic peak-regions are slightly more dispersed now, the disparity between the rich and poor regions has also grown larger.
This view illustrates the Central Place Theory. In major cities with highly advanced economy, there exist more abundant resources, and so more innovative ideas and products are generated. Additionally, a highly specialized region reduces production costs for producers through the economies of scale. Consumers also benefit through a wider selection of products, lower prices as a result of competition and lower transportation cost. This further enhances the economic activities of these highly developed regions, making the disparity between wealthy and poor regions more significantly. As a result, the author's conclusion in the article is reached, that the spikiness of the world's wealth distribution grows.
My study abroad city, London, lies on the top of the hierarchy of central places, the National Metropolis. Southampton, 76.3 miles aways from London, will be a Regional Metropolis. A Regional City will be Brighton, 52.4 miles away. Oxford which is 60 miles drive, is a small city. Dartford with a distance of 18.8 miles will be a town. Kidlington in Oxfordshire, 60 miles away from London, is a village. Dulwich will be a good representative of Hamlet near London, which is 7 miles away.
The author believes that while globalization has increased the returns to innovation, which is the engine for economic development, through allowing innovative products and services to quickly reach consumers worldwide, it has increased the spikiness of wealth and economic production. Thus, although the world's economic peak-regions are slightly more dispersed now, the disparity between the rich and poor regions has also grown larger.
This view illustrates the Central Place Theory. In major cities with highly advanced economy, there exist more abundant resources, and so more innovative ideas and products are generated. Additionally, a highly specialized region reduces production costs for producers through the economies of scale. Consumers also benefit through a wider selection of products, lower prices as a result of competition and lower transportation cost. This further enhances the economic activities of these highly developed regions, making the disparity between wealthy and poor regions more significantly. As a result, the author's conclusion in the article is reached, that the spikiness of the world's wealth distribution grows.
My study abroad city, London, lies on the top of the hierarchy of central places, the National Metropolis. Southampton, 76.3 miles aways from London, will be a Regional Metropolis. A Regional City will be Brighton, 52.4 miles away. Oxford which is 60 miles drive, is a small city. Dartford with a distance of 18.8 miles will be a town. Kidlington in Oxfordshire, 60 miles away from London, is a village. Dulwich will be a good representative of Hamlet near London, which is 7 miles away.
Monday, April 23, 2012
Transportation in the United Kingdom
1, Water Transportation
a. Closest major ocean ports that are Post Panamax capable
- Southampton, English Channel (post-Panamax, traditional liner port)
- Felixstowe, North Sea (post-Panamax, 35% of UK container traffic)
- Liverpool, Irish Sea (new post-Panamax container terminal expansion planned. Accommodates cruise ships of 345 m in length and 10 m draught)
b, Other ports in country
- Teesport, Middlesbrough, North Sea
- Port of Tyne, Newcastle, North Sea
- Barrow, Irish Sea
- Port Talbot, Irish Sea
- Milford Haven, Irish Sea
- Invergordon, Moray Firth
- Hunterston Terminal, Firth of Clyde
- Hound point, Firth of Forth
2, Land Transportation
a, Railroad (Freight)
There are four main freight operating companies in the UK, the largest of which is DB Schenker. There are also several smaller independent operators including Mendip Rail. Types of freight carried include intermodal, coal, metals, oil and construction material. Statistics on freight are specified in terms of the weight of freight lifted, and the net tone kilometer, being freight weight multiplied by distance carried. As of 2011, rail freight occupies an 11.5% market share for surface freight transport in the UK.
Since 1995 the amount of freight carried on the railways has increased sharply. The railways have become more reliable, and economical. By the year 2015 rail-borne intermodal traffic scheduled to double, and by 2030 the whole of rail freight is expected to double.
b, Railroad (Passenger)
- Cross Country Route: Bristol, Birmingham, Sheffield, Leeds, York
- East Coast Main Line: London, Leeds, York, Newcastle, Edinburgh
- Great Eastern Main Line: London, Ipswich, Norwich
- Great Western Main Line: London, Bristol, Cardiff
- High Speed 1: London, Channel Tunnel
- Midland Main Line: London, Leicester, Nottingham, Sheffield, Leeds
- West Coast Main Line: London, Birmingham, Liverpool, Manchester, Glasgow
c, Highway and Road Network
- A1 Road (Great Britain): connects London and Edinburgh
- A1 Road (Northern Ireland): from Belfast via Lisburn and Banbridge to the border with the Republic of Ireland
- M1 Motorway (Great Britain): connects London to Leeds, joins A1(M) near Aberford
- M1 Motorway (Northern Ireland): from Belfast to Dungannon through County Down and County Armagh
3, Air Transportation
a, International Airports
- Aberdeen Airport
- Birmingham Airport
- Belfast City Airport
- Belfast International Airport
- Blackpool Airport
- Bournemouth Airport
- Bristol Airport
- Cardiff Airport
- Coventry Airport
- Doncaster Airport
- Durham Teeside Airport
- East Midlands Airport
- Edinburgh Airport
- Gatwick Airport
- Exeter Airport
- Heathrow Airport
- Glasgow Airport
- Leed Bradford Airport
- Humberside Airport
- London City Airport
- Liverpool Airport
- Manchester Airport
- Luton Airport
- Newquay Airport
- Newcastle Airport
- Norwich Airport
- Prestwick Airpot
- Southampton Airport
- Stansted Airport
b, Other Airports
A complete list of all airport in the United Kingdom: http://en.wikipedia.org/wiki/List_of_airports_in_the_United_Kingdom_and_the_British_Crown_Dependencies
[edit]
Friday, April 20, 2012
Response to "The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger"
Original Article: http://press.princeton.edu/chapters/s9383.html
The most interesting point that I found in Marc Levinson's Chapter One is his argument that one of containerization's biggest contributions is to save time. Because of the quicker handling and shorter storage time, products are transited much faster from manufacturers to customers. Thus, manufacturers' inventories are reduced significantly, leading to more efficient use of capitals. Additionally, containerization also gives rise to the possibility of developing just-in-time manufacturing that answers consumers' design needs specifically. This advantage of containerization and the subsequent low transportation costs is a whole new idea for me. I have always thought of low transportation cost as beneficial to promoting international trade by reducing costs for suppliers. Yet, it is quite brilliant to associate the development in manufacturing process to containerization, which can be regarded as an invention and thus should have the equal effect to intrigue new manufacturing model. I am truly impressed with this interpretation of the advantage of containerization and it opens my mind to view things in a broader sense.
The author believes that shipping containers make it possible and affordable for suppliers to sell their products half way across the world and consumers to demand goods from other countries, since the cost of shipping products has significantly reduced. Additionally, containerization makes it possible to transport inputs or intermediary good between countries, so manufacturers have the options to purchase inputs with lower price from foreign countries or to ship the intermediary goods to countries with lower cost to finish the manufacturing process. This process makes it more likely that wage rates across the globe are equal. What is more, as mentioned in the previous paragraph, by reducing shipping time and inventory cost, manufacturers also have the option of just-in-time manufacturing and answers consumers' needs specifically. All these factors combined contribute to the increasingly important globalization.
By reducing transportation cost, this innovation increases a country's export of goods in which it has a comparative advantage. Meanwhile, it will increases a country's import of goods in whose production it is less productive. So both exports and imports will rise, leaving little change to net export. Additionally, business will invest in building equipments to adjust to shipping container, so business will increase investment. Thus, all in all, National Income will increase. Correspondingly, as export increases, the labor demanded in the export industry will increase. Yet, import also increases at the same time, so the labor demanded in the import competing industry will decrease. Also, given the higher efficiency in the manufacturing process and the broader use of machines and computers, fewer labors will be demanded in the shipping process. Thus, employment is expected to decline.
In the extended Ricardian Model in international trade, transportation cost is borne by the consumers and thus added to the unit labor requirement, the units of labor hour required to produce one unit of good. That is, the higher the transportation cost, the higher the unit labor requirement and the lower the productivity. As transportation cost gets lower as a result of the containerization, the country's productivity is increased, relatively raising the capital resources of the country. Therefore, the country's national income will increase in the long run.
The most interesting point that I found in Marc Levinson's Chapter One is his argument that one of containerization's biggest contributions is to save time. Because of the quicker handling and shorter storage time, products are transited much faster from manufacturers to customers. Thus, manufacturers' inventories are reduced significantly, leading to more efficient use of capitals. Additionally, containerization also gives rise to the possibility of developing just-in-time manufacturing that answers consumers' design needs specifically. This advantage of containerization and the subsequent low transportation costs is a whole new idea for me. I have always thought of low transportation cost as beneficial to promoting international trade by reducing costs for suppliers. Yet, it is quite brilliant to associate the development in manufacturing process to containerization, which can be regarded as an invention and thus should have the equal effect to intrigue new manufacturing model. I am truly impressed with this interpretation of the advantage of containerization and it opens my mind to view things in a broader sense.
The author believes that shipping containers make it possible and affordable for suppliers to sell their products half way across the world and consumers to demand goods from other countries, since the cost of shipping products has significantly reduced. Additionally, containerization makes it possible to transport inputs or intermediary good between countries, so manufacturers have the options to purchase inputs with lower price from foreign countries or to ship the intermediary goods to countries with lower cost to finish the manufacturing process. This process makes it more likely that wage rates across the globe are equal. What is more, as mentioned in the previous paragraph, by reducing shipping time and inventory cost, manufacturers also have the option of just-in-time manufacturing and answers consumers' needs specifically. All these factors combined contribute to the increasingly important globalization.
By reducing transportation cost, this innovation increases a country's export of goods in which it has a comparative advantage. Meanwhile, it will increases a country's import of goods in whose production it is less productive. So both exports and imports will rise, leaving little change to net export. Additionally, business will invest in building equipments to adjust to shipping container, so business will increase investment. Thus, all in all, National Income will increase. Correspondingly, as export increases, the labor demanded in the export industry will increase. Yet, import also increases at the same time, so the labor demanded in the import competing industry will decrease. Also, given the higher efficiency in the manufacturing process and the broader use of machines and computers, fewer labors will be demanded in the shipping process. Thus, employment is expected to decline.
In the extended Ricardian Model in international trade, transportation cost is borne by the consumers and thus added to the unit labor requirement, the units of labor hour required to produce one unit of good. That is, the higher the transportation cost, the higher the unit labor requirement and the lower the productivity. As transportation cost gets lower as a result of the containerization, the country's productivity is increased, relatively raising the capital resources of the country. Therefore, the country's national income will increase in the long run.
Friday, April 13, 2012
Summary on Part I of Rivoli's Book
Compared with an idealized, pure market theory, the American cotton market that Rivoli discussed in his book is protected from competition. Unlike in a perfectly competitive market, the US cotton producers are guaranteed the supply of labors at a reasonable wage rate, despite the market supply and demand for labor, especially during harvest period when the market demand for labor peaks. Also, the US cotton producers are protected from a multiple of market risks with government subsidies that ordinary cotton farmers face in other countries. As a result, the US are able to preserve a dominance in the world cotton market with high comparative advantage.
Rivoli distinctly denotes that many American farmers demonstrate remarkable adaptability and entrepreneurial spirits, as opposed to the tradition-bounded farmers in poor countries. He specifically narrates the story of Eli Whitney, who famously invented machine upon the stated needs of farmers and tremendously improved the productivity of cotton farmers. As an interesting contrast, Rivoli immediately made an investigation into how India and China, the two supposedly strong competitors in cotton industry, did around the same period in history. It turned out that these two oriental countries were reluctant to give up old methods and explored new ones, however more efficient the new ones might be. The entrepreneurial characteristics in American farmers gives rise to the technology boom in the US, which makes the US dominance on cotton possible.
What surprises me the most in this section is the persistent use of subsidy by the government in the US. As I have learnt in International Trade, production subsidy will create production distortionary cost, implying that though more farmers are engaged in the production of cotton, not all of them producing most efficiently; some of them might simply be more productive if they work elsewhere. Thus, the entire country's relative productivity in cotton should be reasonably assumed to lower. This should hinder the US from continual dominance on cotton. However, Rivoli concludes that since the US plays a big role in the world's market for demand and supply, the US can influence the world price effectively. The decreasing world price resulted from increasing world supply crowds out competitors from other countries who do not benefit from a production subsidy. Thus, the US are able to enjoy a sustainable dominance on cotton. This is quite different from the traditional international trade theory that I have been exposed to, and I am eager to read more on subsidy in the other sections of the book.
Rivoli distinctly denotes that many American farmers demonstrate remarkable adaptability and entrepreneurial spirits, as opposed to the tradition-bounded farmers in poor countries. He specifically narrates the story of Eli Whitney, who famously invented machine upon the stated needs of farmers and tremendously improved the productivity of cotton farmers. As an interesting contrast, Rivoli immediately made an investigation into how India and China, the two supposedly strong competitors in cotton industry, did around the same period in history. It turned out that these two oriental countries were reluctant to give up old methods and explored new ones, however more efficient the new ones might be. The entrepreneurial characteristics in American farmers gives rise to the technology boom in the US, which makes the US dominance on cotton possible.
What surprises me the most in this section is the persistent use of subsidy by the government in the US. As I have learnt in International Trade, production subsidy will create production distortionary cost, implying that though more farmers are engaged in the production of cotton, not all of them producing most efficiently; some of them might simply be more productive if they work elsewhere. Thus, the entire country's relative productivity in cotton should be reasonably assumed to lower. This should hinder the US from continual dominance on cotton. However, Rivoli concludes that since the US plays a big role in the world's market for demand and supply, the US can influence the world price effectively. The decreasing world price resulted from increasing world supply crowds out competitors from other countries who do not benefit from a production subsidy. Thus, the US are able to enjoy a sustainable dominance on cotton. This is quite different from the traditional international trade theory that I have been exposed to, and I am eager to read more on subsidy in the other sections of the book.
Sunday, April 8, 2012
Recent Economic Issue of the United Kingdom
Original Article: http://www.khaleejtimes.com/DisplayArticle11.asp?xfile=data/business/2012/March/business_March569.xml§ion=business
The Office for National Statistics in the United Kingdom announced that the GDP contracted by a worse-than-expected 0.3 percent in the fourth quarter of 2011, owing to a decline in the service sector and household spending. As a result, the prospect of another recession is raised for the United Kingdom.
Given that GDP is composed of household consumption, investment, government spending and net export, a decline in household spending will lower the GDP through the consumption sector. A decline in the service sector will bring a decrease in household consumption and export of services to foreign countries, which brings down the GDP again. Rising oil prices also put cost pressure on producers, who respond by decreasing supply, shifting the market supply to the left. The decline in production leads to a decrease in quantity and an increase in prices. Additionally, the poor economic performance in the Euro zone also influences the UK negatively, since the UK relies heavily on the neighboring countries for its trade. Therefore, net export declines, putting downward pressure on the GDP again.
One resolution to the problem would be to increase the supply of money in the market to boost household consumption. Thus, the consumption sector in the GDP will rise. However, this will lead to a negative by-product of inflation, which is already no small issue in the UK. Another possible policy will be to decrease the interest rates, which encourages firms to borrow money and increase their investments. Meanwhile, a lower interest rate will also give consumers the incentive to spend rather than to save. Additionally, the government can increase government expenditure by expanding infrastructure, which will lead to an increase in government spending as well as provide employment and reduce unemployment rate.
The Office for National Statistics in the United Kingdom announced that the GDP contracted by a worse-than-expected 0.3 percent in the fourth quarter of 2011, owing to a decline in the service sector and household spending. As a result, the prospect of another recession is raised for the United Kingdom.
Given that GDP is composed of household consumption, investment, government spending and net export, a decline in household spending will lower the GDP through the consumption sector. A decline in the service sector will bring a decrease in household consumption and export of services to foreign countries, which brings down the GDP again. Rising oil prices also put cost pressure on producers, who respond by decreasing supply, shifting the market supply to the left. The decline in production leads to a decrease in quantity and an increase in prices. Additionally, the poor economic performance in the Euro zone also influences the UK negatively, since the UK relies heavily on the neighboring countries for its trade. Therefore, net export declines, putting downward pressure on the GDP again.
One resolution to the problem would be to increase the supply of money in the market to boost household consumption. Thus, the consumption sector in the GDP will rise. However, this will lead to a negative by-product of inflation, which is already no small issue in the UK. Another possible policy will be to decrease the interest rates, which encourages firms to borrow money and increase their investments. Meanwhile, a lower interest rate will also give consumers the incentive to spend rather than to save. Additionally, the government can increase government expenditure by expanding infrastructure, which will lead to an increase in government spending as well as provide employment and reduce unemployment rate.
Thursday, April 5, 2012
Reflection on "The Social Responsibility of Business is to Increase its Profits"
Original Article: http://colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html
In his article, Milton Friedman concludes that in a free market, the only social responsibility of business is to use its resources and engage in free and fair competition that increase its profits. To illustrate his major theme, Friedman approaches his conclusion from the points that:
- Corporate executive serves as an agent for owners of corporation. When he reduces returns for a corporation to fulfill a social responsibility, he is in effect imposing taxes and deciding on how to spend the proceeds, which raises political questions on principle and consequence.
- Exercising social responsibility is a justification for actions that are in fact in a corporation's own interest.
- By exercising social responsibilities, businessmen are calling for government control and are strengthening the already-too-prevalent view that the pursuit of profit is evil, which will do them no good in the long run.
For Friedman, the most important cultural value is Individualism, which states that people's decisions are independent and are made out of self-interest. He believes when a business makes a decision based on the needs and well-being of the group, it is in fact reducing rather than enhancing the interest of the whole society eventually.
In the first place, I share Adam Smith's famous statement on "the invisible hand" that by promoting an individual's own interest, he frequently promotes that of society more effectually. However, there should not be a conflict between business and social responsibility. Most rational corporate executives made business decisions out of incentive to promote interest. This would not, and should not, exclude the case of exercising social responsibility. Therefore, it can be reasonably expected that business will assume the social responsibilities that will enhance its own interest in the first place. This will lead to an effective function of the invisible hand. Eventually, business should be able to exercise social responsibility along with truly benefitting the society.
In his article, Milton Friedman concludes that in a free market, the only social responsibility of business is to use its resources and engage in free and fair competition that increase its profits. To illustrate his major theme, Friedman approaches his conclusion from the points that:
- Corporate executive serves as an agent for owners of corporation. When he reduces returns for a corporation to fulfill a social responsibility, he is in effect imposing taxes and deciding on how to spend the proceeds, which raises political questions on principle and consequence.
- Exercising social responsibility is a justification for actions that are in fact in a corporation's own interest.
- By exercising social responsibilities, businessmen are calling for government control and are strengthening the already-too-prevalent view that the pursuit of profit is evil, which will do them no good in the long run.
For Friedman, the most important cultural value is Individualism, which states that people's decisions are independent and are made out of self-interest. He believes when a business makes a decision based on the needs and well-being of the group, it is in fact reducing rather than enhancing the interest of the whole society eventually.
In the first place, I share Adam Smith's famous statement on "the invisible hand" that by promoting an individual's own interest, he frequently promotes that of society more effectually. However, there should not be a conflict between business and social responsibility. Most rational corporate executives made business decisions out of incentive to promote interest. This would not, and should not, exclude the case of exercising social responsibility. Therefore, it can be reasonably expected that business will assume the social responsibilities that will enhance its own interest in the first place. This will lead to an effective function of the invisible hand. Eventually, business should be able to exercise social responsibility along with truly benefitting the society.
Wednesday, April 4, 2012
Reflection on Dr. Richard Shweder's Speech
Dr. Richard Shweder delivered the concept that after the Berlin Wall fell down on November 9, 1989, a New World Order is predicted to replace the old tripartite classification of "First World", "Second World" and "Third World". Three prophesies on the shape of the New World order include:
- The west is the best and will take over the world.
- Nations will attain economic growth while maintaing their distinctive cultures.
- A liberal Ottoman-Like empire will emerge. There will be both cosmopolitan liberals, who appreciate neutrality and globalization, and local non-liberals, who are dedicated to ethnicity.
I believe education in different countries could be a good indicator of global change. A nation that encourages globalization tends to promote the value of cultural diversity in the core courses in educational institutes within that country, while a nation that is dedicated to local development will emphasize domestic history and culture. Additionally, students who are educated with a global mindset are more likely to assume global citizen responsibility, which in return shapes the world. In recent years, it has been observed that educational institutions around the globe have been making profound effort in fostering open-mindedness toward diverse cultures among their citizens. There has been an increasing number of exchange students and visiting scholars around the world. Global concept is deeply incorporated in core values delivered to young generations. As both the cause and the consequence, globalization is an irreversible trend in the world today, and it can be reasonably predicted to thrive in foreseeable future.
I am convinced that culture is one of the most vital factors that shape economic outcomes. To an extend, culture determines the political and economic system of a country. One distinct example will be China. The Chinese is a nation that highly values collectivism. For thousands of years of history, the Chinese people were accustomed to the concept of having a sole decision-maker, mostly the emperor, and everybody worked collectively to execute his decisions. As a legacy, today it turns out more effective in China than in other countries to have a centralized government that makes major decisions in economic activities, rather than to allow for an entirely free market. The cultural traits in the Chinese nation have greatly shaped China's economic outcome.
- The west is the best and will take over the world.
- Nations will attain economic growth while maintaing their distinctive cultures.
- A liberal Ottoman-Like empire will emerge. There will be both cosmopolitan liberals, who appreciate neutrality and globalization, and local non-liberals, who are dedicated to ethnicity.
I believe education in different countries could be a good indicator of global change. A nation that encourages globalization tends to promote the value of cultural diversity in the core courses in educational institutes within that country, while a nation that is dedicated to local development will emphasize domestic history and culture. Additionally, students who are educated with a global mindset are more likely to assume global citizen responsibility, which in return shapes the world. In recent years, it has been observed that educational institutions around the globe have been making profound effort in fostering open-mindedness toward diverse cultures among their citizens. There has been an increasing number of exchange students and visiting scholars around the world. Global concept is deeply incorporated in core values delivered to young generations. As both the cause and the consequence, globalization is an irreversible trend in the world today, and it can be reasonably predicted to thrive in foreseeable future.
I am convinced that culture is one of the most vital factors that shape economic outcomes. To an extend, culture determines the political and economic system of a country. One distinct example will be China. The Chinese is a nation that highly values collectivism. For thousands of years of history, the Chinese people were accustomed to the concept of having a sole decision-maker, mostly the emperor, and everybody worked collectively to execute his decisions. As a legacy, today it turns out more effective in China than in other countries to have a centralized government that makes major decisions in economic activities, rather than to allow for an entirely free market. The cultural traits in the Chinese nation have greatly shaped China's economic outcome.
Sunday, April 1, 2012
UK Statistics on Resources, International Trade and National Income
1, Resources:
a, Natural Resources: Coal, Petroleum, Natural Gas, Iron Ore, Lead, Zinc, Gold, Tin, Limestone, Salt, Clay, Chalk, Gypsum, Potash, Silica Sand, Slate, Arable Land
b, Labor:
- Labor Force (2011 est.): 31,76 million
* Country ranking: 20
- Labor Force by Occupation (2006 est.)
1), Services: 80.4%
2), Industry: 18.2%
3), Agriculture: 1.4%
c, Capital: information unfound
2, International Trade
a, Exports (2011 est.): $495.4 billion
* Country ranking: 11
b, Import (2011 est.): $654.9 billion
* Country ranking: 7
c, Exchange rate (2011 est.): USD/GBP 0.6176
3, National Income Account
a, Consumption - Household Consumption by Percentage Share (1999 est.)
- Lowest 10%: 2.1%
- Highest 10%: 28.5%
b, Investment (2011 est.): 14.4% of GDP
* Country ranking: 167
c, Government Expense (2011 est.):
- Taxes and other revenue: 40.9% of GDP
* Country Ranking: 39
- Budget Deficit: -8.8% of GDP
* Country Ranking: 191
a, Natural Resources: Coal, Petroleum, Natural Gas, Iron Ore, Lead, Zinc, Gold, Tin, Limestone, Salt, Clay, Chalk, Gypsum, Potash, Silica Sand, Slate, Arable Land
b, Labor:
- Labor Force (2011 est.): 31,76 million
* Country ranking: 20
- Labor Force by Occupation (2006 est.)
1), Services: 80.4%
2), Industry: 18.2%
3), Agriculture: 1.4%
c, Capital: information unfound
2, International Trade
a, Exports (2011 est.): $495.4 billion
* Country ranking: 11
b, Import (2011 est.): $654.9 billion
* Country ranking: 7
c, Exchange rate (2011 est.): USD/GBP 0.6176
3, National Income Account
a, Consumption - Household Consumption by Percentage Share (1999 est.)
- Lowest 10%: 2.1%
- Highest 10%: 28.5%
b, Investment (2011 est.): 14.4% of GDP
* Country ranking: 167
c, Government Expense (2011 est.):
- Taxes and other revenue: 40.9% of GDP
* Country Ranking: 39
- Budget Deficit: -8.8% of GDP
* Country Ranking: 191
Wednesday, March 28, 2012
Statistics on the United Kingdom
Original Source: https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html
1, GDP
- GDP at Purchasing Power Parity: $2.25 trillion
* This is the sum value of all goods and services produced in the United Kingdom valued at prices prevailing in the United States in 2011.
- GDP at Official Exchange Rate : $2.481 trillion
* This is calculated through dividing the GBP-denominated annul GDP figure by the average USD/GBP exchange rate in 2011.
2, GDP per capita
$35,900
Country Comparison to the World: 34
* Data on 2011 estimates.
3, Life Expectancy
- Total Population: 80.17 years
Country Comparison to the World: 30
- Male: 78.05 years
- Female: 82.4 years
* Data on 2012 estimates.
4, Poverty Rate
14%
* Data on 2006 estimates.
5, Literacy Rate
- Population: 99%
- Male: 99%
- Female: 99%
* Definition: age 15 and over has completed five or more years of schooling, data on 2003 estimates.
6, Unemployment Rate
7.9%
Country Comparison to the World: 94
* Data on 2011 estimates.
7, Inflation
4.5%
Country Comparison to the World: 112
* Data on2011 estimates.
1, GDP
- GDP at Purchasing Power Parity: $2.25 trillion
* This is the sum value of all goods and services produced in the United Kingdom valued at prices prevailing in the United States in 2011.
Country Comparison to the World: 9
- GDP at Official Exchange Rate : $2.481 trillion
* This is calculated through dividing the GBP-denominated annul GDP figure by the average USD/GBP exchange rate in 2011.
2, GDP per capita
$35,900
Country Comparison to the World: 34
* Data on 2011 estimates.
3, Life Expectancy
- Total Population: 80.17 years
Country Comparison to the World: 30
- Male: 78.05 years
- Female: 82.4 years
* Data on 2012 estimates.
4, Poverty Rate
14%
* Data on 2006 estimates.
5, Literacy Rate
- Population: 99%
- Male: 99%
- Female: 99%
* Definition: age 15 and over has completed five or more years of schooling, data on 2003 estimates.
6, Unemployment Rate
7.9%
Country Comparison to the World: 94
* Data on 2011 estimates.
7, Inflation
4.5%
Country Comparison to the World: 112
* Data on2011 estimates.
Tuesday, March 27, 2012
Why Human Society Unfolded Differently On Different Continents
Original article: http://edge.org/3rd_culture/diamond/diamond_p2.html
1, Diamond's main theme is that the differences between human societies on different continents are attributable to differences among continental environments rather than to biological differences among people themselves. His key points include:
a). Continents with a larger number of wild animals suitable for domestication developed a higher level of agriculture.
b). Continents that have east - west axis turned out easier for animals to spread, given similar day-length and climate along the same latitude.
c). Advanced agriculture facilitated the development of technology, weapon and political system, which were influential for success of human societies.
d). Continents that had contacts with outside areas enjoyed access to new technologies.
e). Continents with a larger number of human societies adopted technologies that had significant use because of competition between societies.
2, Diamond identifies continental environment to be the most important determinants to a society's success.
Eurasia enjoyed the largest success around A.D. 1500. The continent was the largest land on earth and had the most animal species. As a result, it contained the largest number of animals that were domesticable. Additionally, Eurasia had east-west axis, which made it easier for animals and plants to spread given the similar day-length and climates. The abundance in domesticable species gave rise to thriving agriculture. Animals allowed farmers to manure more land than farmers could by their own efforts. Increased productivity produced food surplus, which enabled other people to devote to developing metal weapon, writing and ships. Food surplus also brought stratification, which created political organization eventually. What is more, Eurasia contained a large number of different human societies which were in constant contact with each other. This allowed the spread of new technologies. Competition among human societies also motivated societies to adopt the technologies that were of significant use.
3. Most of the economically successful districts nowadays enjoy a favorable environment that allows rapid technology boom. Countries like the US have a large volume of cultivable farmlands and diversified climates that allow the growth of different species of planets and animals. This leads to a more advanced agriculture, which implies that a smaller proportion of the country's resources are directed into farming; more resources are used to develop technology. Technological growth increases a country's productivity and facilitates the country's economic success.
On the other hand, although areas like Hong Kong and Singapore had few cultivable lands for farming, they enjoy the advantages of convenient location and close connection with other countries. Their advantageous location makes it less costly to transport food from other countries. Therefore, they are able to focus on developing technology and increasing productivity. Additionally, given their high contact with other areas, they import and accumulate an increasing volume of technologies. Intensive competition between countries in the region motivates these countries to adopt technologies that are most meaningful for their economic growth.
1, Diamond's main theme is that the differences between human societies on different continents are attributable to differences among continental environments rather than to biological differences among people themselves. His key points include:
a). Continents with a larger number of wild animals suitable for domestication developed a higher level of agriculture.
b). Continents that have east - west axis turned out easier for animals to spread, given similar day-length and climate along the same latitude.
c). Advanced agriculture facilitated the development of technology, weapon and political system, which were influential for success of human societies.
d). Continents that had contacts with outside areas enjoyed access to new technologies.
e). Continents with a larger number of human societies adopted technologies that had significant use because of competition between societies.
2, Diamond identifies continental environment to be the most important determinants to a society's success.
Eurasia enjoyed the largest success around A.D. 1500. The continent was the largest land on earth and had the most animal species. As a result, it contained the largest number of animals that were domesticable. Additionally, Eurasia had east-west axis, which made it easier for animals and plants to spread given the similar day-length and climates. The abundance in domesticable species gave rise to thriving agriculture. Animals allowed farmers to manure more land than farmers could by their own efforts. Increased productivity produced food surplus, which enabled other people to devote to developing metal weapon, writing and ships. Food surplus also brought stratification, which created political organization eventually. What is more, Eurasia contained a large number of different human societies which were in constant contact with each other. This allowed the spread of new technologies. Competition among human societies also motivated societies to adopt the technologies that were of significant use.
3. Most of the economically successful districts nowadays enjoy a favorable environment that allows rapid technology boom. Countries like the US have a large volume of cultivable farmlands and diversified climates that allow the growth of different species of planets and animals. This leads to a more advanced agriculture, which implies that a smaller proportion of the country's resources are directed into farming; more resources are used to develop technology. Technological growth increases a country's productivity and facilitates the country's economic success.
On the other hand, although areas like Hong Kong and Singapore had few cultivable lands for farming, they enjoy the advantages of convenient location and close connection with other countries. Their advantageous location makes it less costly to transport food from other countries. Therefore, they are able to focus on developing technology and increasing productivity. Additionally, given their high contact with other areas, they import and accumulate an increasing volume of technologies. Intensive competition between countries in the region motivates these countries to adopt technologies that are most meaningful for their economic growth.
Subscribe to:
Posts (Atom)