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.
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