1. I think learning about the exchange rate is the most applicable thing we learned about this quarter. I always have a hard time determining if something is expensive and I feel like I will have an even more difficult time determining these things in Spain. I still need to practice converting exchange rates but now that I have a better understanding about how to do it I think I will have an easier time. Also, learning about what effects whether currency is appreciating or depreciating is something that could be helpful while on study abroad. It will let me know if I am actually getting a good deal for what I am buying. Learning about what makes currency appreciate or depreciate is helpful too because I now have some understanding about what to look for when buying something.
2. I am interested in learning more about the central place theory. I had never though about a city in that way before and I can see really well how it works just by being in a certain place. I am interested in seeing if I am able to determine the set up of madrid during the time that I am there. I am also interested in learning more about what drives a city into these formations. I know that economic factors play a huge role in this formation, but I would also like to explore other factors that play into this.
3. Advice I would give to a student considering this class would be to make sure that the country they pick in one that they are truly interested in. If I had to do a great amount of research on a country that I wasn't interested in I would not have learned so much about Spain. I would also suggest they had some economics background. I have not taken an economics class since my sophomore year of high school and there were times when I felt a little lost when discussing some topics. I would recommend this class to anyone. It pushed me to learn things about Spain that I otherwise probably wouldn't and I feel like it played a huge role in getting me prepared for living in a foreign country.
Thursday, June 6, 2013
Tuesday, June 4, 2013
News Summary Blog 5
http://finance.fortune.cnn.com/2013/05/30/spain-economy-bankia/
1. This week in Madrid shares in the nationalized Spanish lender Bankia fell by almost 21% when the bank issued 11.5 billion new shares. The issue of shares was in an attempt to boost the banks depleted capital base. In addition to this, the banks share price went down by 50% last week. Since opening in 2011 the bank has lost 80% of its share value. It is a surprise that this sale went so wrong because it was looking as if the Spanish banking system was beginning to improve. This failed sale has made Wall Street question the state of the spanish banking system as well as Spain's entire economy. Investors are beginning to question whether or not Spain has been lying about recent numbers that have been collected in economic data. If it is found that this has happened, the validity of the Spanish market, as well as the rest of europe, would be in serious question and all confidence will be lost. This lack of market confidence could ultimately be fatal for the euro. The Spanish government has said that the GDP deficit has been cut by 7%. If that is true it is odd that this sale didn't go through and suggests that the Spanish government is not doing as well as it has been reported. Countries with solid economic statistics attract more capital and pay lower interest rates than those who "play games" with investors. This could put the rest of Europe at risk because if investors don't trust what is being said, they will stop listening to them. This would make it difficult to borrow from markets in the future.
2. This issue relates to class because this failed sale could cause the euro to become fatal. The value will depreciate and the euro will be worth less. This issue has the potential to effect all of europe, not only Spain. Investors will stop investing in European markets so the demand for the euro will decrease causing the price to decrease. Like the article said, inorder to have investors investing in an economy there has to be a strong market. This is currently not the case and if it is not fixed the value of the euro will only continue to go down. The depreciation of the euro will cause the economy to continue to be in a crisis because it will not be worth anything.
3. The failed sale of shares led to investors being skeptical of Spain's current economic condition. If the economy was improving, like the government has reported, there is no reason for the shares to fall 21%. There is the possibility that this failed sale has nothing to do with the government making up numbers and have everything to do with Bankia itself. However, this is unlikely because of the size of the role bankia plays in the Spanish government. Bankia encompasses 10% of the nation's deposits and 10% of its mortgages. A solution to this problem could be for an outside group to come and determine the status of Spain's economy. A solution the article gives is for the Spanish government to step up and start making the necessary changes needed to improve the economy, or they can continue to play games with the markets in an effort to buy themselves some time.
1. This week in Madrid shares in the nationalized Spanish lender Bankia fell by almost 21% when the bank issued 11.5 billion new shares. The issue of shares was in an attempt to boost the banks depleted capital base. In addition to this, the banks share price went down by 50% last week. Since opening in 2011 the bank has lost 80% of its share value. It is a surprise that this sale went so wrong because it was looking as if the Spanish banking system was beginning to improve. This failed sale has made Wall Street question the state of the spanish banking system as well as Spain's entire economy. Investors are beginning to question whether or not Spain has been lying about recent numbers that have been collected in economic data. If it is found that this has happened, the validity of the Spanish market, as well as the rest of europe, would be in serious question and all confidence will be lost. This lack of market confidence could ultimately be fatal for the euro. The Spanish government has said that the GDP deficit has been cut by 7%. If that is true it is odd that this sale didn't go through and suggests that the Spanish government is not doing as well as it has been reported. Countries with solid economic statistics attract more capital and pay lower interest rates than those who "play games" with investors. This could put the rest of Europe at risk because if investors don't trust what is being said, they will stop listening to them. This would make it difficult to borrow from markets in the future.
2. This issue relates to class because this failed sale could cause the euro to become fatal. The value will depreciate and the euro will be worth less. This issue has the potential to effect all of europe, not only Spain. Investors will stop investing in European markets so the demand for the euro will decrease causing the price to decrease. Like the article said, inorder to have investors investing in an economy there has to be a strong market. This is currently not the case and if it is not fixed the value of the euro will only continue to go down. The depreciation of the euro will cause the economy to continue to be in a crisis because it will not be worth anything.
3. The failed sale of shares led to investors being skeptical of Spain's current economic condition. If the economy was improving, like the government has reported, there is no reason for the shares to fall 21%. There is the possibility that this failed sale has nothing to do with the government making up numbers and have everything to do with Bankia itself. However, this is unlikely because of the size of the role bankia plays in the Spanish government. Bankia encompasses 10% of the nation's deposits and 10% of its mortgages. A solution to this problem could be for an outside group to come and determine the status of Spain's economy. A solution the article gives is for the Spanish government to step up and start making the necessary changes needed to improve the economy, or they can continue to play games with the markets in an effort to buy themselves some time.
Thursday, May 23, 2013
City Analysis
1. Based on Madrid's population of 3.234 million people I would place it as a regional metropolis on the hierarchy of central places. Madrid is the largest city in Spain and has a metropolitan area population of 6,321,389 people. This area covers about 5.335,97 km² of land. The largest suburbs are in the south and on the main areas leading out of Madrid. The main locations along the "inner ring" are Getafe, Coslada, and San Fernando de Henares. The second largest city in Spain is Barcelona with a population of 1.621 million people. Valencia is another large city in Spain 797,028 people. A smaller city in Spain is Zaragoza with a population of 679,624 people.
2. Not only is Madrid the largest city in Spain it is also the capital. Madrid has a very developed metro system. The metro is currently the sixth largest metro in the world and has an annual ridership of about 634,598,000. Since the city is located in the middle of the country it is the site for many routes to other parts of Spain. The Madrid-Barajas Airport is the international airport located in spain. It is the country's largest and busiest airport. Because it is a large city Madrid has a lot of clubs and restaurants to offer. Madrid is known for its nightlife and there are multiple clubs to visit throughout the night. Madrid also has many tourist destinations and attractions like the Museo del Prado. One thing that is locally unavailable in Madrid is a direct route to the ocean. The city is located in the middle of Spain so it is likely that there is a lot of importing of food into the city and very little growing of local foods.
2. Not only is Madrid the largest city in Spain it is also the capital. Madrid has a very developed metro system. The metro is currently the sixth largest metro in the world and has an annual ridership of about 634,598,000. Since the city is located in the middle of the country it is the site for many routes to other parts of Spain. The Madrid-Barajas Airport is the international airport located in spain. It is the country's largest and busiest airport. Because it is a large city Madrid has a lot of clubs and restaurants to offer. Madrid is known for its nightlife and there are multiple clubs to visit throughout the night. Madrid also has many tourist destinations and attractions like the Museo del Prado. One thing that is locally unavailable in Madrid is a direct route to the ocean. The city is located in the middle of Spain so it is likely that there is a lot of importing of food into the city and very little growing of local foods.
A map of Madrid's metro system.
View of Madrid.
Vehicle Market Executive Summary
Based on research findings the vehicle that would produce
the best market is the mid sized four-door sedan. This choice is based on the
large population in Spain, 47,370,542, that consist of about 25 million
drivers, anda GDP per capita of $30,400. A second reason is due to the fact
that Spain consists of 166,000 kilometers of road. Most of these roads are
motorways and express highways that are best suited for vehicles larger than
motor scooters. Spain’s rising unemployment rate, 26%, makes owning a mid sized
sedan more cost efficient. The vehicles would arrive into the country on
shipping boats, then because Spain consists have a large number of roads, the
vehicles would be distributed by land. Because of Spain’s current economy
starting a business has been more difficult than usual, but Spain is ranked
number 44 out of 185 countries to do business in.
Tuesday, May 21, 2013
News Summary Blog 4
http://www.hellenicshippingnews.com/News.aspx?ElementId=f716afb5-5fbf-45b8-9e0c-81601b08e265
1. For the first time since 1971 Spain has reported a monthly trade surplus. A trade surplus is usually seen as a positive since during a trade surplus a nation has control over most of its currency, but this surplus is only indicating a large slump in imports rather than an increase in economic activity. Comparing the month of March this year to the month last year Spain has experienced a 15% decrease in imports. The trade surplus in march was reportedly 634.9 million euros. Exports also suffered a 8.1% decrease in March this year, but overall exports have increased by 2% this year. The Economy Ministry has said that this process will continue unless countries begin to reorient its sales to markets where the economy is more favorable such as the Middle East, Africa, and the United States. This week, Figures showed that the Eurozone is in its longest recession on record. Spain is the Eurozone's fourth largest economy and its unemployment rate has reached 26.7% this year.
2. This issue relates to part 4 of the country profile. In that post I found that Spain earns about $293.2 billion a year (2009) from imports. The 15% decrease in imports will hurt Spain's economy even more. For that assignment I also found that Spain imports so many things because of their lack of resources in the country. It is estimated that 1.813 million barrels of oil are imported into the country each year. The article did not specifically mention what imports have decreased, but since Spain consists of a lot of coastline, seaports could potentially begin to suffer as well.
3. The article hinted that this problem arose from Spain trading with markets with poor economies. The reason why this trade surplus is such a problem is the fact that imports have dropped 15%. Due to the economic crisis economic activity is already low, this surplus did not cause activity to rise. A resolution to this problem would be for Spain to take the Economy Ministry's advice and start trading in markets with a favorable economy. A policy that could improve this situation could be implementing a trade agreement with one of the country the Economy Ministry suggested or another country with a better economy.
1. For the first time since 1971 Spain has reported a monthly trade surplus. A trade surplus is usually seen as a positive since during a trade surplus a nation has control over most of its currency, but this surplus is only indicating a large slump in imports rather than an increase in economic activity. Comparing the month of March this year to the month last year Spain has experienced a 15% decrease in imports. The trade surplus in march was reportedly 634.9 million euros. Exports also suffered a 8.1% decrease in March this year, but overall exports have increased by 2% this year. The Economy Ministry has said that this process will continue unless countries begin to reorient its sales to markets where the economy is more favorable such as the Middle East, Africa, and the United States. This week, Figures showed that the Eurozone is in its longest recession on record. Spain is the Eurozone's fourth largest economy and its unemployment rate has reached 26.7% this year.
2. This issue relates to part 4 of the country profile. In that post I found that Spain earns about $293.2 billion a year (2009) from imports. The 15% decrease in imports will hurt Spain's economy even more. For that assignment I also found that Spain imports so many things because of their lack of resources in the country. It is estimated that 1.813 million barrels of oil are imported into the country each year. The article did not specifically mention what imports have decreased, but since Spain consists of a lot of coastline, seaports could potentially begin to suffer as well.
3. The article hinted that this problem arose from Spain trading with markets with poor economies. The reason why this trade surplus is such a problem is the fact that imports have dropped 15%. Due to the economic crisis economic activity is already low, this surplus did not cause activity to rise. A resolution to this problem would be for Spain to take the Economy Ministry's advice and start trading in markets with a favorable economy. A policy that could improve this situation could be implementing a trade agreement with one of the country the Economy Ministry suggested or another country with a better economy.
Friday, May 10, 2013
The Box
1. A passage that I found interesting is, "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 on the way." I found this passage interesting because it makes shipping seem so simple. Later on in the reading it mentions that shipments will travel miles and miles without even being opened or tampered with. That makes it so that companies know that their products are sure to get to their proper location with little complications. This process is also done rather quickly. I had never though about how fast a shipment occurs, but I figured it would take a long time. The fact that a container can now be shipped from Malaysia to LA in just 16 days is amazing, not to mention how little that shipment costs.
2. The development of the shipping container contributes to globalization by making the cost of shipping so low. these ships are able to hold a huge amount of cargo and some ships only need 20 workers on board. The low cost of shipping made it so that other countries could reasonably ship and receive goods. This allowed businesses to become international. nearly priceless shipping made it easy for manufactures to avoid higher pay costs by being able to move abroad. Computers also help make shipping costs stay low because they are able to determine when containers will be loaded and discharged, and where they are to go. This allows there to be less workers on the dock. Also, these ships have allowed trade to become much faster and efficient.
3. Locations with large docks are who will gain from the transformation of global transportation. When this transformation began small docks became inadequate because these shipping boats were just too big for them to take on. Old shipping locations also lost in this transformation because the costs of modernizing the location was too expensive. Small towns close to the docks with lots of space benefit. They have the available space to store the items being shipped to and from the docks. Large industrial complexes also benefit because the cost of shipping is so low.
2. The development of the shipping container contributes to globalization by making the cost of shipping so low. these ships are able to hold a huge amount of cargo and some ships only need 20 workers on board. The low cost of shipping made it so that other countries could reasonably ship and receive goods. This allowed businesses to become international. nearly priceless shipping made it easy for manufactures to avoid higher pay costs by being able to move abroad. Computers also help make shipping costs stay low because they are able to determine when containers will be loaded and discharged, and where they are to go. This allows there to be less workers on the dock. Also, these ships have allowed trade to become much faster and efficient.
3. Locations with large docks are who will gain from the transformation of global transportation. When this transformation began small docks became inadequate because these shipping boats were just too big for them to take on. Old shipping locations also lost in this transformation because the costs of modernizing the location was too expensive. Small towns close to the docks with lots of space benefit. They have the available space to store the items being shipped to and from the docks. Large industrial complexes also benefit because the cost of shipping is so low.
Tuesday, May 7, 2013
News Summary Blog 3
http://www.elmundo.es/elmundo/2013/05/06/madrid/1367829709.html
1. The article is a basic summary of unemployment rates in Madrid during the month of April compared to the previous month and year. Unemployment has gone down in April by .48% less than it was in March. Though, unemployment is still significantly higher this April than it was last. since last April unemployment has risen by 37,713 people or 7.10%. Though nationally, unemployment is at the lowest its been in April since 2007 with a .91% increase in employment. Of the 569,030 people unemployed in Madrid 287,710 of them are women with the remaining 281,320 being men. The two sectors that are facing the most unemployment at the moment are the construction industry and the agriculture sector. The article then goes on to mention unemployment rates among foreign residents. Unemployment rates in this group are much lower than those of Spanish citizens in Madrid. From March to April unemployment among foreigners fell 1.29%. There is a slight difference in the major sectors experiencing high unemployment. Foreigners are also experiencing unemployment in the construction and agriculture sectors, but are also experiencing the most unemployment in services sector. During April 131,866 people received some kind of benefits. Right now the average amount received per month is 881.2 euros per month which totals to more than 336.1 million euros per year.
2. This relates to class because we were talking about immigration and emigration last week. Due to Spain's current economy I was a little confused as to why immigration was still so high. This article seems to show that foreigners are not having as hard of a time finding work as Spanish citizens are. This is very interesting to me and I would like to know why this is. I would also like to have known where the foreign residents that are able to attain jobs are coming from. These numbers could be what is contributing to the immigration rate in Spain regardless of the current economy.
3. There is no specific cause of this situation mentioned in the article, but one can assume it is due to the current economic crisis. A solution I can think of for the problem is to create more jobs for Spanish residents. This would save money also considering the government is paying 336.1 million euros a year in benefits to foreign residents as well as citizens. I think the government could implement some kind of policy to improve this situation, but I don't know what that policy would look like, or if that could even be done.
1. The article is a basic summary of unemployment rates in Madrid during the month of April compared to the previous month and year. Unemployment has gone down in April by .48% less than it was in March. Though, unemployment is still significantly higher this April than it was last. since last April unemployment has risen by 37,713 people or 7.10%. Though nationally, unemployment is at the lowest its been in April since 2007 with a .91% increase in employment. Of the 569,030 people unemployed in Madrid 287,710 of them are women with the remaining 281,320 being men. The two sectors that are facing the most unemployment at the moment are the construction industry and the agriculture sector. The article then goes on to mention unemployment rates among foreign residents. Unemployment rates in this group are much lower than those of Spanish citizens in Madrid. From March to April unemployment among foreigners fell 1.29%. There is a slight difference in the major sectors experiencing high unemployment. Foreigners are also experiencing unemployment in the construction and agriculture sectors, but are also experiencing the most unemployment in services sector. During April 131,866 people received some kind of benefits. Right now the average amount received per month is 881.2 euros per month which totals to more than 336.1 million euros per year.
2. This relates to class because we were talking about immigration and emigration last week. Due to Spain's current economy I was a little confused as to why immigration was still so high. This article seems to show that foreigners are not having as hard of a time finding work as Spanish citizens are. This is very interesting to me and I would like to know why this is. I would also like to have known where the foreign residents that are able to attain jobs are coming from. These numbers could be what is contributing to the immigration rate in Spain regardless of the current economy.
3. There is no specific cause of this situation mentioned in the article, but one can assume it is due to the current economic crisis. A solution I can think of for the problem is to create more jobs for Spanish residents. This would save money also considering the government is paying 336.1 million euros a year in benefits to foreign residents as well as citizens. I think the government could implement some kind of policy to improve this situation, but I don't know what that policy would look like, or if that could even be done.
Sunday, May 5, 2013
Country Profile Part 5
1. Water transportation
The Port of Valencia is the largest ocean port in spain and is located in Valencia in the Mediterranean Sea basin. The traffic capacity of this port in about 57 million metric tons of cargo. The port also employs many residents of the area and generates 51% of Spain's GDP.
Other major ports in Spain include the Port of Barcelona, Algeciras, and the Port of Vigo. The Port of Barcelona is Catalonia's largest port. Algeciras is one of the largest ports in Europe. The Port of Vigo is the biggest fishing port in the world.
2. Land transportation
There are a number of high speed rail lines in spain known as the AVE (Alta Velocidad Español) and like most of the trains in Spain, it is operated by RENFE. RENFE also operates freight systems on the Spanish nationalized infrastructure company. The rail line is 2,665 km long and is the longest in Europe and 2nd longest in the world after China. The line connects Madrid with several other large cities in Spain. These high speed trains can reach speeds up to 186 mph. Also, Madrid has the sixth longest subway system in the world.
The Spanish motorway network is the fourth largest in the world behind the United States, China, and Canada. There are two types of roads in spain autopistas and autovías. The difference between these two kinds of roads is mainly historical. Both are divided highways with full access control with speeds between 37 and 75 mph. Autopistas are mainly for travel and are often toll roads. Autovías are usually upgrades of older roads and do not contain tolls. These roads are meant for slower speeds so it is acceptable for bicycles and agricultural machinery to use them.
3. Air transportation
The biggest international airport in Spain is Madrid-Barajas airport which is the main international airport in madrid serving over 49 million passengers in 2010 and 2011. Since opening in 1928 it has become one of the most important aviation centers in europe. The second biggest international airport is Barcelona-El Prat. The airport mainly serves domestic flights in Europe and North Africa, but also offers flights to southeast Asia, Latin America, and North America. The Alicante airport is the sixth busiest airport in spain and about 80% of flights are international.
Two very important domestic airports in spain are the Sabadell airport and the Cuatro Vientos airport. The Sabadell airport in located in Sabadell and the Cuatro Vientos airport is located in Madrid and is the oldest airport in Spain. The Cuatro Vientos was originally a military airbase and was then converted to a civil airport. The Sabadell airports is home to the oldest aviation club in spain and includes a training school.
The Port of Valencia is the largest ocean port in spain and is located in Valencia in the Mediterranean Sea basin. The traffic capacity of this port in about 57 million metric tons of cargo. The port also employs many residents of the area and generates 51% of Spain's GDP.
Other major ports in Spain include the Port of Barcelona, Algeciras, and the Port of Vigo. The Port of Barcelona is Catalonia's largest port. Algeciras is one of the largest ports in Europe. The Port of Vigo is the biggest fishing port in the world.
2. Land transportation
There are a number of high speed rail lines in spain known as the AVE (Alta Velocidad Español) and like most of the trains in Spain, it is operated by RENFE. RENFE also operates freight systems on the Spanish nationalized infrastructure company. The rail line is 2,665 km long and is the longest in Europe and 2nd longest in the world after China. The line connects Madrid with several other large cities in Spain. These high speed trains can reach speeds up to 186 mph. Also, Madrid has the sixth longest subway system in the world.
The Spanish motorway network is the fourth largest in the world behind the United States, China, and Canada. There are two types of roads in spain autopistas and autovías. The difference between these two kinds of roads is mainly historical. Both are divided highways with full access control with speeds between 37 and 75 mph. Autopistas are mainly for travel and are often toll roads. Autovías are usually upgrades of older roads and do not contain tolls. These roads are meant for slower speeds so it is acceptable for bicycles and agricultural machinery to use them.
3. Air transportation
The biggest international airport in Spain is Madrid-Barajas airport which is the main international airport in madrid serving over 49 million passengers in 2010 and 2011. Since opening in 1928 it has become one of the most important aviation centers in europe. The second biggest international airport is Barcelona-El Prat. The airport mainly serves domestic flights in Europe and North Africa, but also offers flights to southeast Asia, Latin America, and North America. The Alicante airport is the sixth busiest airport in spain and about 80% of flights are international.
Two very important domestic airports in spain are the Sabadell airport and the Cuatro Vientos airport. The Sabadell airport in located in Sabadell and the Cuatro Vientos airport is located in Madrid and is the oldest airport in Spain. The Cuatro Vientos was originally a military airbase and was then converted to a civil airport. The Sabadell airports is home to the oldest aviation club in spain and includes a training school.
Thursday, April 25, 2013
Country Profile Part 4
1. Spain imports and exports from a number of countries. The main countries Spain exports from are France, Germany, Portugal, and Italy. Imports come from Italy, France, Germany, and China. (A) Key exports from Spain include motor vehicles, food, medicine, pharmaceuticals, and machinery. In 20009 spain earned $215.7 billion from its exports. (B) In 2009 Spain's imports earned them $293.2 billion. This wide difference in price is due to a lack of resources in the nation. Imports include oil, mechanical and electric machinery, iron, and steel. The biggest import that Spain has is oil. They receive about 1.813 million barrels per year.
2. The exchange rate in Spain in euros per US dollar is:
0.7838 (2012)
0.7185 (2011) 0.755 (2010) 0.7198 (2009) 0.6827 (2008)
3. In 2010 there were over 6 million foreign born residents living in Spain. Many immigrants come from Latin American Countries like Ecuador, Brazil, and Bolivia, as well as many European countries like the UK, Germany, Italy, Romania, and Bulgaria. Many people in Spain emigrate to the US, Morocco, and Brazil. Due to the recent change in economy Spain has experienced much more emigration in the past few years.
4. Spain has maintained good relations with other spanish speaking countries. They also have good relations with much of Europe. Recently Spain has sought relations with Senegal, Mali, and other African countries to find an solution to the issue regarding immigration to the Canary Islands. Spain also has a broker in the Middle East. Spain is currently trying to increase their relations with East Asian countries. Spain has a territory dispute with Morocco that regards the five places of sovereignty. The issue over the status of Gibraltar with the United Kingdom is the most well known dispute concerning the country.
2. The exchange rate in Spain in euros per US dollar is:
0.7838 (2012)
0.7185 (2011) 0.755 (2010) 0.7198 (2009) 0.6827 (2008)
3. In 2010 there were over 6 million foreign born residents living in Spain. Many immigrants come from Latin American Countries like Ecuador, Brazil, and Bolivia, as well as many European countries like the UK, Germany, Italy, Romania, and Bulgaria. Many people in Spain emigrate to the US, Morocco, and Brazil. Due to the recent change in economy Spain has experienced much more emigration in the past few years.
4. Spain has maintained good relations with other spanish speaking countries. They also have good relations with much of Europe. Recently Spain has sought relations with Senegal, Mali, and other African countries to find an solution to the issue regarding immigration to the Canary Islands. Spain also has a broker in the Middle East. Spain is currently trying to increase their relations with East Asian countries. Spain has a territory dispute with Morocco that regards the five places of sovereignty. The issue over the status of Gibraltar with the United Kingdom is the most well known dispute concerning the country.
Tuesday, April 23, 2013
News Summary Blog 2
http://www.20minutos.es/noticia/1792907/0/crisis-turismo/paquetes/vacacionales/
1. The recent economic crisis may now be effecting tourism in Spain. Tourists are no longer booking "holiday packages" because they are too expensive and it is cheaper for them to book their vacation on their own. The the crisis is also causing flights to be more expensive so more and more people are opting to drive to their destinations once they get to spain, instead of fly there. The article then suggests that Spanish tourism markets take a look at what is going on in the Asian market and try to take tips from them. They can do this by creating new packages specifically for their guests in an attempt to adapt to the change in consumer spending. It also suggests that companies use new technologies like the internet to make prices more competitive.
2. This article relates to class because we have been taking about how tourism can effect an economy. So far we have taked a lot about how tourism can benefit an economy, but not so much about how it could hurt an economy. I think this is an interesting example because tourism isn't becoming nonexistent and is still being beneficial to the country, but not to everyone. This change in tourism is mainly hurting travel companies and airlines for now. The article doesn't state that this change is hurting any businesses, so it seems like tourist are still spending money and benefiting the economy in some way. I think if these travel companies are able to properly and quickly adapt to the change in tourist spending that they will not be effected as severely as they are right now.
3. The increase in flight costs is what led to tourist no longer booking holiday packages. Since flights are included in these packages, when those prices increased, the entire package price increased. The article doesn't give any specific detail as to how the economic crisis effected flight costs, but does mention that as the main reason. The article does specify that the tourist economy is not in crisis, just experiencing price changes due to the change in tourist spending. My resolution to this problem of tourists not buying holiday packages would be for travel companies selling these packages to make changes to the package in some way. They could take away something from the package that would reduce the price without increasing the price due to expensive flights.
1. The recent economic crisis may now be effecting tourism in Spain. Tourists are no longer booking "holiday packages" because they are too expensive and it is cheaper for them to book their vacation on their own. The the crisis is also causing flights to be more expensive so more and more people are opting to drive to their destinations once they get to spain, instead of fly there. The article then suggests that Spanish tourism markets take a look at what is going on in the Asian market and try to take tips from them. They can do this by creating new packages specifically for their guests in an attempt to adapt to the change in consumer spending. It also suggests that companies use new technologies like the internet to make prices more competitive.
2. This article relates to class because we have been taking about how tourism can effect an economy. So far we have taked a lot about how tourism can benefit an economy, but not so much about how it could hurt an economy. I think this is an interesting example because tourism isn't becoming nonexistent and is still being beneficial to the country, but not to everyone. This change in tourism is mainly hurting travel companies and airlines for now. The article doesn't state that this change is hurting any businesses, so it seems like tourist are still spending money and benefiting the economy in some way. I think if these travel companies are able to properly and quickly adapt to the change in tourist spending that they will not be effected as severely as they are right now.
3. The increase in flight costs is what led to tourist no longer booking holiday packages. Since flights are included in these packages, when those prices increased, the entire package price increased. The article doesn't give any specific detail as to how the economic crisis effected flight costs, but does mention that as the main reason. The article does specify that the tourist economy is not in crisis, just experiencing price changes due to the change in tourist spending. My resolution to this problem of tourists not buying holiday packages would be for travel companies selling these packages to make changes to the package in some way. They could take away something from the package that would reduce the price without increasing the price due to expensive flights.
Thursday, April 18, 2013
Reinventing the Bazaar Chapter 4
A. A passage that I found interesting was, "apparently homogeneous items often are not actually homogeneous: it matters where you buy them" (page 50). This interested me because I experience this almost everyday it seems like. I admit that I am guilty of buying a brand name item when I could easily get the exact same thing for a much lower price. Though, there are times when I do find myself searching for the best price. I do this a lot when I'm buying books for school. I don't really know what makes books any different than a expensive brand name coat. McMillan states that this becomes a problem when online shopping is involved mostly because the buyers cannot see the quality of the item they are buying. This is interesting because I assume for most people that price and quality go hand in hand.
B. When referring to transaction costs McMillan means the expenses of trying to find a product that a buyer is unable to find. This happens when buyers are trying to find products for the best prices and are traveling from store to store to do so. Transaction costs are high when a buyer cannot obtain the correct information, and low when the information is available to the buyer. Transaction costs also occur when shopping online when a buyer is insuring that their product will get to them in a timely manner and in good condition.
C. When information flow is imperfect the market will run inefficiently. When this happens buyers are at a disadvantage if they do not have full access to information. Lack of information may cause buyers to question whether or not they are making quality purchases. That lack of information buyers have in turn may effect the sellers if the buyers decide against making a purchase. Though it could greatly work to the sellers advantage if the buy does decide to make the purchase. Too much information could give the buyer an advantage as well. If the buyer knows how much a product should cost they are in a better position to make deals with the seller for a lower price. As you can see, when the buyer has too much information the seller is at a disadvantage.
B. When referring to transaction costs McMillan means the expenses of trying to find a product that a buyer is unable to find. This happens when buyers are trying to find products for the best prices and are traveling from store to store to do so. Transaction costs are high when a buyer cannot obtain the correct information, and low when the information is available to the buyer. Transaction costs also occur when shopping online when a buyer is insuring that their product will get to them in a timely manner and in good condition.
C. When information flow is imperfect the market will run inefficiently. When this happens buyers are at a disadvantage if they do not have full access to information. Lack of information may cause buyers to question whether or not they are making quality purchases. That lack of information buyers have in turn may effect the sellers if the buyers decide against making a purchase. Though it could greatly work to the sellers advantage if the buy does decide to make the purchase. Too much information could give the buyer an advantage as well. If the buyer knows how much a product should cost they are in a better position to make deals with the seller for a lower price. As you can see, when the buyer has too much information the seller is at a disadvantage.
Tuesday, April 16, 2013
A Fez of the Heart
1. One passage that I found interesting while reading was "in its twenty-year transformation, it seemed that Pomegranate had lost more than it had gained, and it was hard to see what could reclaim it" (page 11). This was in regard to Halil saying that life in Pomegranate was no longer fun and all everyone does now is business. I found this interesting because it made me think about the exercise we did involving what people in other countries thought of Americans. The Turkish people strived so hard to be technologically advanced that they ended up loosing their culture and being caught up in the business aspect of life much like Americans are. It amazed me how westernized the city had become in such a short amount of time.
2. The fact that wearing a fez is illegal unless its to promote tourism is a good example of how culture and economics interact. The Turkish people saw very quickly that tourism was going to better their economy and wearing a fez was a way to take advantage of that. Making it so that tourists were having a good experience meant that they would spend more and more money and in turn change the economy. By changing cultural values, such as wearing or not wearing a fez, the Turkish people were able to boost their economy.
3. A major tourist attraction in Spain is El Prado. Tourists like to visit there because they have a chance to witness a lot of history in one place. The museum is filled with hundreds of paintings of all different styles from a number of different artists so there is something for everyone to enjoy.
2. The fact that wearing a fez is illegal unless its to promote tourism is a good example of how culture and economics interact. The Turkish people saw very quickly that tourism was going to better their economy and wearing a fez was a way to take advantage of that. Making it so that tourists were having a good experience meant that they would spend more and more money and in turn change the economy. By changing cultural values, such as wearing or not wearing a fez, the Turkish people were able to boost their economy.
3. A major tourist attraction in Spain is El Prado. Tourists like to visit there because they have a chance to witness a lot of history in one place. The museum is filled with hundreds of paintings of all different styles from a number of different artists so there is something for everyone to enjoy.
Country Profile Part 3
1. Spain is a popular destination for summer holidays. People from places like the British Isles, France, Central Europe, and Scandinavia come to spain. In 2007 Spain became the second most visited country in the world. According to the World Tourism Organization 60 million foreigners came to Spain that year. However, in 2010 Spain dropped to the number four most visited country with 53 million visiters that year.
2. There are many attractions in Spain. The Palacio Real is located in Madrid and is the official residence of the King of Spain. The running of the bulls is another popular event that takes place each year from July 6th - 14th. La Concha is said to be one of the best beaches in Europe. Other major tourist attractions include Aqueduct of Segovia, El Escorial, and the Sagrada Familia.
3. There are 14 national parks in Spain and 1 proposed national park. The most popular is Garajonay National Park in La Gomera, Canary Islands. It has been declared a World Heritage Site by UNESCO and contains some of the most ancient and best preserved forests in Europe. The park is said to be the best place to observe the Laurel pigeon and the Bolle's pigeon. It is also home to tree frogs and many other types of reptiles. Other popular national parks include Picos de Europa National Park, La Garrotxa Volcanic Zone Natural Park, and the Sierra Nevada National and Natural Parks.
4. Spain is full of many art museums. Museo Nacional del Prado is the most popular. The museum is said to hold over 8600 paintings that range between the 12th and 19th centuries. The most important painting in the museums collection is "Las Meninas" by Velazquez. Others artists include Goya, El Greco, Bosch, and Rembrandt. Other popular museums are Museo Thyssen-Bornemisza, Museo de Arte Abstracto Español, and The National Museum "Centro de Arte Reina Sofia."
2. There are many attractions in Spain. The Palacio Real is located in Madrid and is the official residence of the King of Spain. The running of the bulls is another popular event that takes place each year from July 6th - 14th. La Concha is said to be one of the best beaches in Europe. Other major tourist attractions include Aqueduct of Segovia, El Escorial, and the Sagrada Familia.
3. There are 14 national parks in Spain and 1 proposed national park. The most popular is Garajonay National Park in La Gomera, Canary Islands. It has been declared a World Heritage Site by UNESCO and contains some of the most ancient and best preserved forests in Europe. The park is said to be the best place to observe the Laurel pigeon and the Bolle's pigeon. It is also home to tree frogs and many other types of reptiles. Other popular national parks include Picos de Europa National Park, La Garrotxa Volcanic Zone Natural Park, and the Sierra Nevada National and Natural Parks.
4. Spain is full of many art museums. Museo Nacional del Prado is the most popular. The museum is said to hold over 8600 paintings that range between the 12th and 19th centuries. The most important painting in the museums collection is "Las Meninas" by Velazquez. Others artists include Goya, El Greco, Bosch, and Rembrandt. Other popular museums are Museo Thyssen-Bornemisza, Museo de Arte Abstracto Español, and The National Museum "Centro de Arte Reina Sofia."
Tuesday, April 9, 2013
Country Profile Part 2
Statistics for Spain
GDP: $1.398 trillion (2010 estimate)
GDP per capita: $30,150 (2010 estimate)
Life expectancy: 81 years (2010)
Poverty rate: 21.1% (2012)
Literacy rate: 97.7% (2010)
Unemployment rate: 24.2% (2012 estimate)
Inflation: 1.9% (2012 estimate)
Natural resources: Spain's climate varies across the country. The Mediterranean climate has dry and warm summers with cold and wet winters with light rain fall, the oceanic climate in the northern part of the country has warm summers and a lot of rain, and the semiarid climate in the southern part of the country is very hot in the summer and much of the fall with little rain. Growing season is almost year-round in Galicia. As of 2007 56.7% of Spain is agricultural land. Major rivers include Duero, Tagus, Guadalquivir, Guadiana, and Ebro. Ebro flows into the Mediterranean while the others flow into the Atlantic. Some minerals include iron ore, copper, pyrites, potash, gypsum, and sepiolite.
Labor: The size of Spain's labor force is 23.11 million as of 2012. Spain's current education system is known as LOE. Education is compulsory and free from ages 6-16. Education consists of four levels pre-school, primary school, compulsory secondary education, and post compulsory schooling.
Capital: Spain's major industries include textiles and apparel, food and beverages, metals and metal manufacturers, shipbuilding, tourism, and automobiles. The train system is the most developed part of its infrastructure and is said to be the best in western Europe.
News Summary Blog 1
http://www.20minutos.es/noticia/1778465/0/comisiones/bancos/evitar/
1. Spanish banks are increasing their bank fees. These fees include charging a customer for a credit or debit card and charging when making money transfers. The Association of Users of Banks and Insurance has stated that customers will likely be paying around 567.8 euros per year. In total there has been a rise of 3.6% in fees from 2011 to 2012. The total amount spent on bank fees in 2012 14,600 million euros. The article goes on to say the cost of individual services that some banks will offer like, annual maintenance for accounts will cost about 178.8 euros and savings account boxes costing 150 euros. The article wraps up with advice to customers on how to avoid banking fees.
2. This article relates to the supply and demand graphs discussed in class. As a bank raises their prices consumers will be less likely to put their money into that bank inorder to avoid fees. In return this will eventually cause the demand for that bank to go down because consumers will either invest in another bank or possibly restrict their use of banks all together. Even though the banks are required to inform their customers about a potential fee, the customer might still be cautious of what they are going to be charged for.
3. This increase in fees has occurred because spanish banks are trying to compensate for profit margins by increasing their bank fees. The economic crises that Spain is experiencing has led to a fall in revenue for banks. This increase is aimed as a way to adapt to the circumstances that the economy crises has brought.
1. Spanish banks are increasing their bank fees. These fees include charging a customer for a credit or debit card and charging when making money transfers. The Association of Users of Banks and Insurance has stated that customers will likely be paying around 567.8 euros per year. In total there has been a rise of 3.6% in fees from 2011 to 2012. The total amount spent on bank fees in 2012 14,600 million euros. The article goes on to say the cost of individual services that some banks will offer like, annual maintenance for accounts will cost about 178.8 euros and savings account boxes costing 150 euros. The article wraps up with advice to customers on how to avoid banking fees.
2. This article relates to the supply and demand graphs discussed in class. As a bank raises their prices consumers will be less likely to put their money into that bank inorder to avoid fees. In return this will eventually cause the demand for that bank to go down because consumers will either invest in another bank or possibly restrict their use of banks all together. Even though the banks are required to inform their customers about a potential fee, the customer might still be cautious of what they are going to be charged for.
3. This increase in fees has occurred because spanish banks are trying to compensate for profit margins by increasing their bank fees. The economic crises that Spain is experiencing has led to a fall in revenue for banks. This increase is aimed as a way to adapt to the circumstances that the economy crises has brought.
Sunday, April 7, 2013
Country Profile Part 1
Sports
In Spain the most popular sport is football. Two popular teams are Real Madrid and FC Barcelona. These teams have been very successful for most of their history in La Liga and there is a rivalry between the two. Real Madrid is said to be the most successful team in Europe since they have won the UEFA champions league a total of 9 times. A popular player for Real Madrid is Cristiano Ronaldo and a popular player for FC Barcelona is Lionel Messi
Music
In Spain different music is popular in different regions. Andalusia is know for flamenco, and Aragon for jota, a type of music that has a dense percussive element. Madrid has a mix of both types of music. Both flamenco and jota are popular but neither are native. Well know performers from Spain include Enrique Iglesias, Ojos de Brujo.
In Spain the most popular sport is football. Two popular teams are Real Madrid and FC Barcelona. These teams have been very successful for most of their history in La Liga and there is a rivalry between the two. Real Madrid is said to be the most successful team in Europe since they have won the UEFA champions league a total of 9 times. A popular player for Real Madrid is Cristiano Ronaldo and a popular player for FC Barcelona is Lionel Messi
Music
In Spain different music is popular in different regions. Andalusia is know for flamenco, and Aragon for jota, a type of music that has a dense percussive element. Madrid has a mix of both types of music. Both flamenco and jota are popular but neither are native. Well know performers from Spain include Enrique Iglesias, Ojos de Brujo.
Food
The most popular food in Spain is paella. Paella is a dish consisting of rice and seafood and originated in Valencia. Another popular dish is Gazpacho, a cold tomato soup popular. Turrón is a popular dessert eaten around christmas. It is a nougat confection made from sugar, egg whites, and honey and often contains chopped nuts.
http://traveltips.usatoday.com/common-foods-spain-14445.html
Religion
Roman Catholicism is most popular in Spain. About 70.5% of Spanish people identified themselves as Catholic. Most younger Spaniards do not regularly attend or participate in religious worship. 59% of Spanish citizens believe that their is a God, 21% believe there is some sort of spirit or life force, and 19% do not believe there is in type of God or Spirit. Islam is the second largest religion practiced in Spain.
Holidays and Customs
National holidays in Spain include New Years Day, Epiphany, Good Friday, Labour Day, Assumption, Fiesta Nacional de España, All Saints Day, Constitution day, Immaculate Conception, and Christmas Day. Some cultural traditions in Spain are bullfighting and a bonfire known as Hogueras that goes on during christmas time.
http://www.kwintessential.co.uk/articles/spain/Traditions-in-Spain/1013
TV shows and Movies
Popular tv shows in Spain are Cuéntame cómo pasó, El Barco, La República, Aida, and La Reina del Sur. Popular movies are El Orfanato, Como Agua Para Chocolate, Vacas, and Abre Los Ojos. Some stars include Penelope Cruz and Guillermo del Toro.
http://www.guardian.co.uk/world/2011/mar/28/spain-books-tv-music-bestselling
Online News Sources
El Mundo http://www.elmundo.es/index.html
La Vanguardia http://www.lavanguardia.com/index.html
20 Minutos http://www.20minutos.es/madrid/
Forums for Expatriates
http://www.internations.org/spain-expats/forum
http://www.eyeonspain.com/
http://www.expatwomen.com/expat-women-countries/expat-women-living-in-spain.php
Government
Spain is a constitutional monarchy defined by the Constitution of Spain. The President of the Government who is also the first minister is currently Mariano Rajoy Brey, he was elected in 2011. The current Minister for the Presidency and Vice President is María Soraya Sáenz de Santamaría Antón. Spain has a multi-party system. The two dominating parties are the right-wing People's Party (PP) and the centre-left Spanish Socialist Workers' Party (PSOE). the PP is a conservative, catholic, and economically liberal party. The PSOE is a democratic party linked to general union workers.
Thursday, April 4, 2013
Reinventing the Bazaar Chapter 1
1. McMillan says that the defining characteristic that make up a market is "something exists if there are people who want to buy it and people who want to sell it" (pg 5). Another defining characteristic to a market is autonomy. People participate voluntarily as separate entities. This gives the participants free reign to decided if they want to buy or sell a product. This also means that "no one is in charge of a market - or, rather, everyone is in charge" (pg 7). As I will note in question 3, this does not mean that there are no rules involved in a market. The rules are in place to keep the market running smoothly so that participants can continue to have their autonomy. Autonomy is important because people want to feel like they are in charge of what they are buying and selling.
2. I have observed both opinions when it comes to markets. When an industry is failing people tend to blame the market for the failure. On the other hand, if an industry is thriving people are more willing to buy from that market. People might distrust a market if that market is causing distress to people such as poverty due to the loss of jobs. People might start to distrust non-market action because markets give people power and putting their trust into other people takes that power they had away. I don't think I personally know enough about markets and how they work to pick a side in this debate. From what I can tell peoples views of the market are always changing because the market is always changing. With this in mind I don't think that I can take only one side.
3. As stated earlier "a market works well only if information flows smoothly through it" (pg 10). For this to happen rules have to be defined. An important rule is trust. Participants need to feel safe about their purchases in order for them to keep coming back. They need to trust that the products they are purchasing are going to be there in a reasonable amount of time and in a good condition. Another rule that is important is competition. Competition between sellers keep products at reasonable prices for buyers as long as there are enough products to go around. This competition is also beneficial to the seller because they have autonomy to set their prices to compete with other sellers in their market.
2. I have observed both opinions when it comes to markets. When an industry is failing people tend to blame the market for the failure. On the other hand, if an industry is thriving people are more willing to buy from that market. People might distrust a market if that market is causing distress to people such as poverty due to the loss of jobs. People might start to distrust non-market action because markets give people power and putting their trust into other people takes that power they had away. I don't think I personally know enough about markets and how they work to pick a side in this debate. From what I can tell peoples views of the market are always changing because the market is always changing. With this in mind I don't think that I can take only one side.
3. As stated earlier "a market works well only if information flows smoothly through it" (pg 10). For this to happen rules have to be defined. An important rule is trust. Participants need to feel safe about their purchases in order for them to keep coming back. They need to trust that the products they are purchasing are going to be there in a reasonable amount of time and in a good condition. Another rule that is important is competition. Competition between sellers keep products at reasonable prices for buyers as long as there are enough products to go around. This competition is also beneficial to the seller because they have autonomy to set their prices to compete with other sellers in their market.
Tuesday, April 2, 2013
Why Did Human History Unfold Differently On Different Continents For the Last 13,000 Years?
A. Diamonds major theme is that continents developed differently due to the geography and resources in that environment and not because of the biology of the people living in those continents. This can be directly attributed to the animals, crops, and resources found on each continent. An example of this is Tasmania. They didn't remain hunters and gatherers because they were unable to learn how to advance, but because they simply did not have the proper resources to learn how to once their way to the mainland was cut off.
B. Diamond identifies geographical location as the most important determinants of a societies success. He points out many times that continents that span east and west had a far greater advantage in the spreading of domesticated animals and crops because the climate was relatively the same. The New World and Africa has a north and south distribution and this proved to be difficult when trying to grow crops and breed domesticated animals throughout the region. Because crops grew much easier in the Old World compared the the New World and Africa the human population was much greater. This was also important when it came to the spreading of diseases because people living in more populated areas tended to have an imune system that was more likely to fight off these infectious diseases that killed many people in the New World.
C. We can still see these ideas applied to today's global economy in the sense that the same people are still leading in technology to this day. Europeans and the people living on the land they conquered are still leading in technology compared to regions such as Africa. Because of this technology many regions such as Tasmania are no longer living in isolated communities and can share the knowledge that they are learning with other regions instead of losing what they have learned because of a lack on contact.
B. Diamond identifies geographical location as the most important determinants of a societies success. He points out many times that continents that span east and west had a far greater advantage in the spreading of domesticated animals and crops because the climate was relatively the same. The New World and Africa has a north and south distribution and this proved to be difficult when trying to grow crops and breed domesticated animals throughout the region. Because crops grew much easier in the Old World compared the the New World and Africa the human population was much greater. This was also important when it came to the spreading of diseases because people living in more populated areas tended to have an imune system that was more likely to fight off these infectious diseases that killed many people in the New World.
C. We can still see these ideas applied to today's global economy in the sense that the same people are still leading in technology to this day. Europeans and the people living on the land they conquered are still leading in technology compared to regions such as Africa. Because of this technology many regions such as Tasmania are no longer living in isolated communities and can share the knowledge that they are learning with other regions instead of losing what they have learned because of a lack on contact.
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