Thursday, May 22, 2014

City Analysis Assignment: Tijuana, Mexico

The city of Tijuana, Mexico, is located immediately south of the United States/Mexico border on the east coast. As a 2010 census discovered, Tijuana is the 5th largest city in Mexico with a current population estimated at 1,784,034. Therefore, Tijuana should be classified as a Regional Metropolis in terms of the Central Place Theory, although some could also consider it a Regional City.

Tijuana, a very popular destination, offers a wide variety of services that would not be found in smaller places such as towns or villages. Although a substantial amount of poverty does exist within the Tijuana area, recently there has been an increase in affluence throughout the region. There is a surprising number of banks, clubs, restaurants, shops, and other popular establishments such as a country club and complex citywide services. Tijuana offers all sorts of public transportation, including an airport. The city, however, lacks a port. In a smaller, and less popular region, the majority of the establishments and services in Tijuana would not be offered. In less densely populated areas, the amount of places such as these is decreased, with the focus primarily on necessities such as the occasional bank, mail center, or grocery store. However, Tijuana doesn't compare to Mexico City (the nation's federal capital) which is home to many government services.

Tuesday, May 20, 2014

Mexico: A Disconnect Between the Labor Market and Higher Education

News Summary
Link to original article: click here (Huffington Post)

Throughout Latin America, and Mexico especially, there is sufficient evidence that points to a 'growing disconnect' between the skills that are taught in schools and the knowledge required in the market of labor. As stated by Ernesto Garcia, "there is no doubt that the supply and demand market for skills is not working efficiently." 

Individuals between the ages of 18 and 24 are currently facing unemployment rates that are unbelievably high, especially compared to the country's overall unemployment rate of approximately 4.9% (CIA World Factbook Unemployment Data). 

Unfortunately, even those that have graduated from university are met with this problem. It's been reported that less than half (about 40%) of all university graduates are actually hired into jobs within their field of study. The remaining 60% of graduates are either unemployed or choose to work in jobs that don't require higher education. 

This phenomenon, the inefficiency of supply and demand for the labor market, could potentially have arisen due to the simple lack of job availability in Mexico and the surrounding countries. However, it is more probably due to the 'obsolete' nature of the education system. There is little to no connection between the skills required in the labor market and those taught in school. 

In order to repair this disconnect, the fundamental principles of the education system in Mexico should focus more on specific labor market skills instead of earning degrees. Data needs to be compiled regarding the nature of the knowledge required in the current labor market and, more specifically, the firms in the private sector. This data should be used to compile an improved collection of school curriculum.

Overall, this is a worrisome phenomenon but has the potential to be easily reversible. If the fundamental changes are put into action, the improved results will surely be noticeable over time.




Tuesday, May 13, 2014

"Junkyard Planet" by Adam Minter -- chapter 5 response

Throughout recent years, the industrial sectors of both India and China have seen substantial growth. However, a staggering majority of scrap metal from the United States is shipped to China, as opposed to India. In the year 2000, China was responsible for the majority of all the world's scrap metal and paper imports. This is due to a variety of factors, including shipping costs. While cheap labor and relaxed regulation standards do play a part in the overwhelmingly sized industry of Chinese scrap metal and paper imports, these were not the most important factors. Although labor is cheaper in India and more pricey in China, the Chinese shipping price is much more cost-effective than the price for comparable transportation services in India. This lower shipping price is due to the backhaul phenomenon. The term 'backhaul' is defined as the return trip a container ship makes after it has deposited it's cargo at the primary destination. Since this is a trip that must be made regardless of whether or not the containers are full or empty (of cargo), shipping companies can charge discounted rates. While these discounted rates are attractive to the shipping service's potential customers, they are even more beneficial to the shipping service company. Since the container ships will be making this trip no matter what, the goods can be shipped with virtually no added transportation cost. This phenomenon is especially important to the Chinese imports industry. Since China is known to export much more than it imports (90% to 10%), it capitalizes on backhaul by importing extremely high volumes of both scrap metal and paper/cardboard products. In the words of Adam Minter, the "U.S. demand for Chinese goods means that a paper mill in southern China can outcompete a Chicago area paper mill for a shipping container of old newspapers in Los Angeles. That's the power of the backhaul - and American demand for Chinese-manufactured goods."

Throughout history there have been countless complications and issues that have sprung up as a result of globalization. In 'Junkyard Planet', when discussing the backhaul phenomenon, the author notes that backhaul is important for global waste reduction. Considering the exportation of food and other goods from India to other countries in the Middle East, the containers are usually empty on their return trip. This lack of backhaul is because the Middle East doesn't have anything in particular to fill these empty containers with. This correlates to the amount of waste within Middle Eastern countries. In fact, those in the Middle East are much more wasteful than Americans, per capita. Globalization has promoted worldwide connections, but can often produce extra waste and avoid focus on localization. 

Modern transportation is easily relatable to the themes in "Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?" by Jared Diamond. In Diamond's text, he states that the varying technological levels of cultures across the world are what eventually contributed to the colonization of America and other areas. In today's time period, modern transportation technology is what separates some civilizations from others. While some countries are obviously much more successful than others in terms of transportation, the societies that lack this technology are seemingly not as prosperous. 





Thursday, May 8, 2014

The World the Box Made (Marc Levinson)

The shipping container has revolutionized the world. As stated by Marc Levinson, author of The World the Box Made, "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." This statement couldn't be more true. Before the invention of the shipping container, the speed of modern day transportation of goods was nowhere near today's unfathomable rate of speed.

In chapter one of "The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" by Marc Levinson, a particularly interesting section is at the beginning. At the start of the first chapter, Levinson discusses the world's first experience with shipping containers. In April of 1956, the first shipping containers were aboard a tanker named the Ideal-X bound from New Jersey to Texas. While there were only 58 aluminum containers on this journey, this first trial run using containers bound for trucks was revolutionary. It's fascinating to note that this particular journey was one of the first successes for a container ship. Before 1956, the world's methods of shipping were very different from today's and not nearly as efficient.

Author Marc Levinson states that the development of the shipping container was revolutionary and an important contribution to globalization. It's interesting that the container, when fully developed, seemingly destroyed the old shipping-based economy. However, this destruction of the old fashioned methods and economy paved the way for a new economy to be constructed. While the old ports declined abruptly, many new ports were rapidly established. In addition to these new ports, "this new economic geography [stemming from the development of better shipping methods, i.e. containers] allowed firms whose ambitions had been purely domestic to be come international companies, exporting their products almost as effortlessly as selling them nearby." In fact, firms who wanted to remain domestic were actually forced to move international simply because the global market was coming right to their proverbial doorstep. Additionally, the development of the container contributed to globalization by drastically increasing the amount of and speed at which the goods can be transported.

Personally, I believe that there is much more to be gained than lost by the development of the shipping container. While those involved in the old-fashioned shipping markets were replaced by the modern port system, the overall gains are evident in modern society. The world gains variety in goods that can be exported worldwide, while the previously utilized shipping employees may be at a loss for work. Even though there are some individuals who lost jobs due to the development of containers, the world improved overall. Specifically, those employed by firms responsible for international trade will benefit a great deal. 


Wednesday, May 7, 2014

Mexico: Recent News Summary

               Before Wednesday, April 24th, the Mexican government appeared to be pushing for a new ruling that would limit and censor the use of the internet and telecommunications throughout Mexico. On the 24th, the day following the end of anti-censorship protesting riddled with conflict in Mexico City, the government 'stepped away' from the proposal. While this proposal was supposedly drawn up for the simple purpose of improving public safety standards, many aspects were controversial. An especially protested aspect of the proposed ruling was the internet blocking capabilities it possessed. It would allowed the government to block the signals of most civilian telecommunications at any time.
               This proposed bill, if passed, could affect the economy in Mexico. While most protesters of this ruling are against the censorship and limited-speech aspects of the proposal, constant and free communication is crucial to the flow of the market system. As is evident throughout history, all markets rely on the prompt communication of the parties involved. With communication being restricted, in this case by the government, markets of all capacities would be affected.
               This situation, where protesters are adamantly against the passing of the proposed bill, occurred as the Mexican government grew closer to turning this proposal into reality. This situation will be resolved if the government chooses to forgo the enactment of this ruling, a process that already seems to be underway. Obviously, more in-depth policies regarding internet use and telecommunications would improve the situation. However, censorship and speech-limiting rulings are not favorable.

Link to original article: click here

Monday, May 5, 2014

Mexico: Transportation

1. In regard to water-based transportation, Mexico isn't as developed as the United States. There are seventy-six total seaports and only ten river ports. It's been reported that four of the most frequented seaports are responsible for approximately sixty percent of the merchandise traffic. Two of these popular seaports are called Altamira and Veracruz; these are located in the Gulf of Mexico. Additionally, seaports called Manzanillo and Lazaro Cardenas service the Pacific Ocean. In terms of proximity to the United States, it appears that a seaport called the Rosarito Terminal is closest. The Rosarito Terminal is located near San Diego, CA, just south of Tijuana.


2. Land transportation in Mexico is similar to the United States. The roadway network is extensive, and is actually home to the most paved roads in all of Latin America. The highways and smaller roadways are similar if not identical to those in the US. For the majority of expressways, tolls exist. It's been reported that Mexican tolls are some of the most expensive in the world.

Towards the end of the 20th century, Mexico made the decision to 'privatize' it's railroads. There are metro systems in both Mexico City and Monterrey. There are also smaller railroad systems within Mexico City and Guadalajara. Additionally, a high speed railway from Mexico City to Guadalajara has been proposed but construction has yet to begin. Smaller, passenger-only trains exist throughout the country and are operated by government owned private companies.

Mexico also has a freight-based railway system. This is owned and operated by the national government. While the majority of Mexican rail activity is for freight purposes, passenger trains do exist. Interestingly enough, there are even railway routes that connect to the United States. Before the railway system developed into what it is today, it had been struggling after a major decline during the Mexican revolution.


3. Air transportation in Mexico is important. Throughout the country there is an extensive network of airports. Mexican airports are the most advanced in Latin America; every city with a population of over 500,000 usually has an airport of it's own. Seven of these airports are the most frequented, with about 90% of all Mexican air travel occurring in and between these airports. These top seven include: The Mexico City International Airport, The Cancun International Airport, The Don Miguel Hidalgo y Costilla International Airport, The General Mariano Escobedo International Airport, The General Abelardo L. Rodriguez Intenational Airport, The General Juan N. Alvarez International Airport, and the Lic. Gustavo Diaz Ordaz International Airport. In addition to the international airports, there are approximately seventy domestic airports.

Thursday, April 24, 2014

Mexico: International Relations

International trade is very important to Mexico. Interestingly enough, one of Mexico’s most frequent trade partners is the United States. According to the International Trade Study (researched by ING economists), the top nine goods imported to Mexico are all of United States origin. These goods include the following: Office, telecom, and electrical equipment ($43560 million); Fuels ($23333 million); Chemicals ($21930 million); Industrial machinery ($19716 million); Road vehicles and transport equipment ($18726 million); Basic food and food products ($16731 million); Other products ($12757 million); Other manufacturers ($12482 million); Ores and metals ($10993 million). Additionally, the tenth largest flow of imports consists of office, telecom, and electrical equipment from China ($9134 million). 

While international imports are key to the economy of Mexico, Mexican export goods are also significant. Similar to imported goods, the most frequent recipient of exports from Mexico is the United States. According to the International Trade Study (researched by ING economists), the top ten goods exported from Mexico are destined for the United States. These goods include the following: Office, telecom, and electrical equipment ($77233 million); Road vehicles and transport equipment ($48904 million); Fuels ($45702 million); Industrial machinery ($25178 million); Other products ($21689 million); Basic food and food products ($14025 million); Ores and metals ($10021 million); Other manufactures ($9952 million); Textiles ($6100 million); Chemicals ($5175 million). 


In terms of the exchange rate in Mexico, here are the recent details from the CIA World Factbook: 

Mexican pesos (MXN) per US dollar 
12.76 (2013 est.)
13.17 (2012 est.)
12.636 (2010 est.)
13.514 (2009)
11.016 (2008)


Many individuals from Mexico are migrants. It’s been estimated that 11% of Mexico’s native individuals are living abroad. 97% of these emigrants currently reside in the US, which means there are more than 12 million migrants from Mexico living in America. These migrants may have crossed the border legally or illegally.

In regard to immigration, it has been estimated that approximately 75% of indigenous Mexican emigrants originate in the United States. However, emigration from Mexico is much more frequent than immigration to Mexico.


When considering the international relations of Mexico, the United States plays a large role. Following the historical Mexican War of Independence, the Mexican government realized the importance of promoting positive relationships with America, mostly for trade purposes. Mexico also maintains positive relationships with a variety of other bi-lateral countries and more. Within the Mexican border, however, the government continues to fight a substantial war on the market of illegal drugs. Over 34,612 individuals have been reportedly killed in Mexico throughout the past four years. These individuals include suspected drug-gang members, members of security forces, and persons considered innocent bystanders. 

Friday, April 18, 2014

"A Fez of the Heart" - Reading Response


Over time, the Turkish town of Pomegranate developed into a major tourist attraction. At first, the town was strict and traditional. However, as time passed, the town became more invested in modern (Western) culture. I found it interesting that, in the “Westernizing years of the 1930s”, it was decreed that all Turkish citizens were to be counted as part of a census. This is interesting to me because of it’s initial failure. The original census attempt was not successful, because of the confusion surrounding the Turks’ patronymics. Before the next census was attempted, it was required of all Turks to assign themselves a surname. These surnames would serve to aid the completion of the census. It’s especially interesting to note that this was one of the first times that a census was attempted for Turkish citizens, and it demonstrates a step towards economic and societal development.

As Pomegranate developed into a popular tourist destination, the citizens were forced to relinquish many aspects of their culture in place of more modern attractions. It’s said that “on the main street, the incursions of English and German had rendered Turkish a minority language.” The text even goes on to state that Turkish food was replaced with other cuisines such as hamburgers. “Turkish food could only hold it’s own by being touted as a gastronomic heritage experience.” Additionally, the original music that was played in the village was replaced with European popular music and the previously unwanted bikini-wearing tourists were now the center of attention. This passage illustrates that the economics of tourism forced these Turkish villagers to focus more on the culture of their visitors instead of their own. Since the culture of the tourists was more economically profitable than the traditional pomegranate culture, the Turks were forced to give up their traditions and cater to the European tourists.

Beyond this specific example of this Turkish town, it’s obvious that tourism can have a positive effect on economics while remaining detrimental to the traditional culture of the village. I believe that in this example of the Turkish village, the people were forced to give up their own culture in order to profit from the tourism. This is both a connection and a conflict, as relinquishing ones’ own culture for economic purposes is not positive. 

Tuesday, April 15, 2014

Mexico: Tourism

1. Tourism is extremely important to Mexico. In 2013, tourism was reported as the fifth-largest revenue source for Mexico and remains an extremely important economic sector. According to a financial study done by JP Morgan Chase, tourism in Mexico generated $12.7 billion in 'foreign exchange inflows' during 2012. It's interesting to note that the number of tourists in Mexico continues to grow, regardless of the increase in drug-related violence throughout Mexico. In fact, Mexico is often the most frequently visited country by Americans. In 2011, there were approximately 22 million tourists that visited Mexico. 


"In August 2011 Mexico saw an increased number of visitors from 145 countries around the world (year on year)."
  • Brazil (59.5%)         Russia (55%)         Ecuador (29.6%)        Australia (22.6%)
  • Argentina (21%)     UK(19.6%)             Korea (18.9%)            Chile (15.9%)
  • Peru (15.1%)           China (14.2%)       Italy (13.1%)               Japan (10.6%)
  • Canada (9.2%)        Colombia (8.7%)"

2. There is a variety of major tourist attractions in Mexico. Many people and their families travel to the country in search of beach resort destinations or other relaxing atmospheres. Locations such as Cancun and Rivera Maya have been rated some of the top vacation destinations by leading travel companies. There are many city destinations in Mexico that are attractive to tourists. These cities include Mexico City, Guadalajara, Monterrey, and Morelia. Also, beaches such as Cabo San Lucas are also very popular. In addition to vacation destinations, there are also many aspects of history and culture that are attractive to tourists. In the central and southern parts of Mexico, it's possible to visit ancient Meso-American ruins.


3. Mexico is home to large amounts of national parks and wildlife. There are more than sixty federally-recognized national wildlife parks within the country of Mexico. These areas are home to many species of plants and animals. In addition to these national parks, there is also a substantial collection of "Reserves of the Biosphere". For example, the Scorpion Reef is the largest reef within the Gulf of Mexico, and it is a Reserve of the Biosphere. The reef contains five different islands, but only one is inhabited. This reef is one of the largest national parks in Mexico. 


4. History and culture are very important within the country of Mexico. Therefore, there are countless museums within the country. However, some of the most significant museums are located in Mexico City. The National Anthropology Museum of Mexico is located in Mexico City. Also in the City there is the National Art Museum, the National Modern Art Museum, and the National History Museum. Interestingly enough, Mexico City itself is a very popular museum destination and is home to over 100 museums.

Thursday, April 10, 2014

Mexico: Economics

MEXICO 

GDP: $1.845 trillion (2013 estimate)

GDP per capita: $15,600 (2013 estimate)

Life expectancy at birth: 75.43 years

Poverty rate: 52.3% of individuals are below the poverty line

Literacy rate of total population: 93.5% (individuals 15 years old or older can read and write)

Unemployment rate: 4.9% (2013 estimate)

Inflation rate for consumer prices: 4% (2013 estimate)


1. Natural Resources
The environment of Mexico is very interesting. In terms of climate, it varies from tropical conditions to barren deserts. Due to the wide variety of climate conditions, the amount of rainfall will fluctuate depending on location. About 13% of land in Mexico is arable land, and an additional 1.36% of land in Mexico holds permanent crops. The crop known as ‘Corn’ is thought to have originated in Mexico. On Mexican soil, water takes up 20,430 square kilometers. In addition to the rivers and bodies of water within Mexico’s borders, Mexico is largely surrounded by the Caribbean Sea and North Pacific Ocean. Significant mineral deposits don’t frequently exist in Mexico.


2. Labor
In Mexico, the labor force was estimated to include 51.48 million individuals in 2013. In terms of the Mexican educational system, 5.1% of the GDP was allocated towards educational expenditures in 2009. The expectancy of school life is approximately 13 years, as estimated in 2011. 


3. Capital
Mexican industries include the following categories of food and beverages, tobacco, chemicals, iron & steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, and tourism. The Mexican economy is growing more and more dependent on the private sector. In recent years, the government of Mexico has increased their level of seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Unfortunately, the GDP growth has slowed to a rate of just more than 1% in 2013.

Tuesday, April 8, 2014

Mexico: News Summary 1

On Thursday, April 3, 2014, Mexican President Enrique Peña Nieto signed a free-trade agreement with Panamanian President Ricardo Martinelli. The official signing of this agreement occurred during the Latin American World Economic Forum in Panama City. This free-trade agreement is expected by some to improve the amount of opportunities for smaller businesses within the Mexican private sector. These improvements could also lead to the acceptance of Panama into the Pacific Alliance free-trade region. Mexico, Peru, Colombia, and Chile are all a part of the Pacific Alliance. Although Panama is not yet included in the Alliance, they are still involved and receive exports from Mexico such as medicine, televisions, steel, and automobiles. 

This new agreement can be related to the broad economic concepts of supply and demand. The agreement will promote a substantial increase in the level of trade between Mexico and Panama. For smaller businesses especially, this is an opportunity for significant growth. “Without a doubt [the amount of trade] will be widely increased once the productive sectors in both countries can start taking advantage of this commercial opening; it will be easier to move people, goods and capital into both countries.” This relates directly to supply and demand. With more options for suppliers as part of the free-trade agreement, both the supply and demand graphs could be affected. 


Before this agreement was signed, however, Mexico and Panama were not necessarily frequent trade partners. Therefore, this lack of trade frequency was problematic. This led the leaders of each country to realize the potential of a free trading system between their respective industries. The solution to this problem was to author a trade agreement between the Mexican and Panamanian government. Due to the free-trade agreement, these countries may experience significant economic improvement.

Sunday, April 6, 2014

Mexico: Culture

1. Popular sports

In Mexico there are several popular sports. While “Charrería” is Mexico’s national sport, similar to rodeo bullfighting, association football (soccer) is the most popular. Second to soccer, boxing is also very popular in Mexico. In the regions to the northwest and southeast, baseball is popular. The sports of basketball, “lucha libre", and bullfighting are also significantly popular. Since soccer is the most popular sport, there are many popular soccer teams or clubs. The first Mexican football (soccer) club is called C.F. Pachuca, and this club still exists. Some of Mexico’s most successful football clubs include Club Deportivo Guadalajara, Club Amèrica, Toluca, and Cruz Azul. 


2. Music

There are a variety of popular and traditional music genres in Mexico. Music in Mexico has received influence from many different cultures, especially cultures of indigenous Mexicans and Europeans. In terms of traditional music, the genre of traditional folk music is the most prevalent. For the popular music category, there are many important genres. These genres include Latin alternative, Mexican ska, Rock, Pop, Electronic, Bolero, Cumbia, Jazz, and Classical. Some of the most well known performers of Mexican popular music include Luis MiguelAlejandro FernándezSelenaThalíaPaulina RubioAlejandra GuzmánGloria Trevi and Marco Antonio Solís.


3. Food

Food is an important part of Mexican culture. Mexican cuisine includes indigenous Mesoamerican themes with Spanish and European elements. Basic ingredients include corn, beans, and chili peppers. The Europeans have introduced a great deal of other foods, especially the meat from domestic animals, dairy products, and a variety of herbs and spices. Mexican street cuisine is very popular, and includes foods such as tacos, quesadillaspambazos, tamales, huaraches, and alambres


4. Major religions and/or spiritual beliefs

There is no official religion in Mexico, as the constitution enforces a separation of church and state. The Catholic Church is most dominant in Mexico, with other forms of Christianity being the second most popular. It’s estimated that between two and five million Mexicans are members of the catholic church. In addition to other forms of Christianity, trends of Islam, Buddhism, and Judaism have made appearances through conversions and immigrations.

5. National holidays and traditional customs

In Mexico, Christmas is a national holiday and schools are given vacation time during Easter and Christmas. On September 16th, Mexicans celebrate their independence from Spain with a variety of festivals nationwide. Additional national celebrations include La Día de Nuestra Señora de Guadalupe (Guadalupe Day), Las Posadas (The Shelters), Noche Buena (Holy Night), and Año Nuevo (New Years Day). 


6. Popular TV shows or movies

Mexican cinema is not as historically prevalent as American movies and TV. However, the recent generations of movies, known as Nueva Cine Mexicano, is very popular. Some of the most popular films in this group include Solo con tu pareja (1991), Como agua para chocolate (1992), Cronos (1992), El callejón de los milagros (1995), Profundo carmesí (1996), Sexo, pudor y lágrimas (1999), The Other Conquest (2000), and La Misma Luna (2006). Some popular Mexican film stars include Ramón Novarro, Dolores del Río, Lupe Vélez, Gilbert Roland, and Pedro Armendáriz. 


7. Online news sources

There are many sources for online news in Mexico. Here are some popular websites for news. Esmas.com, El Universal (http://www.eluniversal.com.mx/), Milenio.com, Televisa Deportes (televisadeportes.com), and mediatiempo.com. A list of 20 popular online news websites can be found at http://www.allyoucanread.com/mexican-newspapers/.


8. Online forums for expatriates

There are many sources for online forums for Mexican expatriates. Some of these forums can be found at the following websites: www.expatforum.comwww.alloexpat.com/mexico_expat_forum/www.internations.org/mexico-expatswww.expatriates.com, and many additional websites.


9. Type of Government


The government in Mexico is classified as a ‘federal presidential representative democratic republic’ based on a congressional system. The federal government that represents the United Mexican States is divided into the executive branch, the legislative branch, and the judicial branch. Currently, the president of Mexico is named Enrique Peña Nieto. There are seven major political parties within Mexico. These parties include the Institutional Revolutionary Party, the National Action Party, the Party of the Democratic Revolution, the Labor Party, the Green Ecological Party, the Convergence Party, and the New Alliance.

Thursday, April 3, 2014

Reinventing the Bazaar: Chapter Two

1. Throughout the first chapter of his book, Reinventing the Bazaar, John McMillan lists and describes several characteristics that define a market. As McMillan states in his first chapter, “[A typical market] evolves spontaneously, driven by its participants. It can operate with little or no formal structure — but only up to a point. To reach a degree of sophistication, its procedures need to be clarified and an authority given the power to enforce them.” A key aspect and requirement of a successful market comes with the power of the market participants, as human interaction is the fundamental basis for markets. Communication and the flow of information between market participants is important, as well as a significant amount of freedom for both buyers and sellers. Without the freedom of choice, markets would not flow smoothly. Those participating in the market system must be able to freely choose their items of both sale and purchase. Additionally, there must be an understanding of trust within the market. Oftentimes, the enforcement of market rules is necessary, and governments are usually responsible for providing the enforcement. McMillan also states that an element of competitive marketing must be present in the most successful markets.

2. The history of markets is riddled with all kinds of stories — from successes to failures, everyone has had some sort of market-related experience. There are many types of markets, some more honest and respectable than others. It’s evident that many people do in fact distrust the market system, and as McMillan states, “some people revile them as the source of exploitation and poverty.” These opinions likely stem from the fact that not all markets have successfully achieved mutual benefits for both buyers and sellers. In other situations, government authority has caused markets to experience inequality and dishonesty, especially in situations involving impoverished societies. Personally, I feel that markets usually promote ‘liberty and prosperity’, however, there have been many situations that suggest just the opposite.


3. In modern markets, there are many important rules, some more important than others. In my opinion, the most important rules are those promoting market structure, rather than authoritative market control. Rules that provide market structures lead participants towards adaptation and in turn will evolve their individual markets to achieve more efficient trading systems. Additionally, the enforcement of mutual trust within the marketplace is also important. 

Tuesday, April 1, 2014

Jared Diamond Article

Throughout the article, author Jared Diamond describes his ideas about why the Europeans were most dominant in early colonizations. These ideas behind colonization set the stage for an attempt at determining the reason for the variety of human history throughout different continents. In his article, Diamond uses examples of several continents in his reasoning.

The first colonization that Diamond describes is that of the New World; previously inhabited by Native Americans. The European colonists arrived by sea, using large sailing ships that had never before been seen or even imagined by the Native Americans. In addition to their advanced transportation, the colonists from Europe were also advanced in many other ways. It is this technological advancement that ultimately led to the European conquer of the New World, and it’s Native American inhabitants.

Other technological advancements of the Europeans (besides those within the realm of transportation) included that of steel weaponry, political organization, and writing. Most original inhabitants of the now-colonized societies were lacking in basically all of these technologies. It was this lack of modern technology that ultimately led to the downfall of the indigenous populations.

Interestingly enough, the most important determinants of a society’s success are not necessarily found in their specific technological advancements. These advancements are actually a result of other basic differences. Both an increase in modern agriculture and domesticated ‘farm’ animals led to the differences in human history. In Europe, domesticated animals thrived, and farming-related agriculture was blossoming into a very important aspect of Eurasian society. Unfortunately, other continents were lacking in these agricultural developments, and therefore were unable to stand up to the European colonists. The continents were lacking in these developments because the local wildlife in most non-European areas was not able to be domesticated. Additionally, overarching environmental factors contributed to the lack of farming advancements. These agricultural advancements in turn led to the production of other modern technologies, such as the weapons, steel, and other tools used in colonizations.

Overall, Diamond attributes these differences in human history to the differences in continental environments. Contrarily, some individuals believe that these differences are actually due to varying biological traits within the worldwide human population. However, this theory of biological trait differences is not supported by Diamond. 

Finally, these seemingly ancient ideas behind the development of worldwide human population can easily be applied to today’s global economy. While events such as ‘New World’ colonizations are not occurring in these times, it’s evident that advancements in modern technology stemming from environmental benefits are what contributed to the varying levels of societal development. The societies that have the most technological and environmental prowess will seemingly be more advanced and successful than those populations that are at a technological/environmental disadvantage. 




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