Final Blog Post

Many parts of the material covered in this class were review, such as supply and demand, GDP, and exchange rates. However in other economics classes, I never really learned about the importance of transportation and how cities can be modeled according to the central place theory. The most important thing I learned was that economics and all things in life are not black and white. When discussing trade, it is not just sending a good from point A to point B. The good has to be transported in different ways, trade barriers may play a role, exchange rates must be taken into account, and there are other numerous variables that must be considered. 

I am interested in learning more about the international business and economics. Learning about economics domestically is interesting in itself, but it is fascinating how when applied internationally, the models are the same, but the variables that effect them are even more important. 

The most challenging thing about next year will be planning for life after college. I may only be a junior, but I will need to figure out what jobs I need to look for after college and whether or not I want to go to graduate school. In addition to this, figuring out a SIP and an internship for my junior summer will also be challenging in itself. 

City Analysis

Berlin is Germany's largest cities and lies at the top in the hierarchy of central places. Berlin does not have one central business district. There are several smaller districts. Property in Berlin is among the least expensive in Germany and has housing suitable mostly for the upper and middle class. Demand for luxury homes has consistently increased since the unification of West and East Berlin. The most desirable are located in the deco buildings and have prestigious architectural features. Centrally located luxury apartments are also very popular. Mitte, Prenzauler, and Charlottenburg are some of the popular districts to live in. Borse Berlin is the Berlin Stock Exchange. This feature is something that would only be found in large cities. In addition, Berlin contains large quantities of restaurants, stores, and other businesses that may not be found in other smaller cities. Because Berlin is Germany's largest city, there are not many goods or services that are unavailable and it has advanced infrastructure, a strong industrial presence, and a couple million residents.

Blog Post

In chapter five, the author discusses the rate of development of China and India and the role U.S. steel has played on that development. China imports more steel than India because it is easier for the United States to ship the goods at a lower transportation cost. India, however, is a farther trip and has more transportation costs. In addition, China has historically been a key trade partner of the United States and has had a greater industrial presence in the global economy than India. India does not have the same resources as China and its location could have played a role in its slower development. This is similar to "Why did Human History Unfold Differently On Different Continents the For the Last 13000 Years." China continues to have the greater means to develop than India has. The resources, climate, and geography in China have contributed to its success. India is located in the middle of Asia and before the development of modern transportation, it was very difficult to import goods from countries such as the United States. Without access to steel from the United States, industrializing and the development that results was more challenging.

"The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger" Discussion

"For workers, of course, this has all been a mixed blessing. As consumers, they enjoy infinitely more choices thanks to the global trade the container has stimulated. By one careful study, the United States imported four times as many varieties of goods in 2002 as in 1972, generating a consumer benefit--not counted in official statistics--equal to nearly 3 percent of the entire economy. The competition that came with increased trade has diffused new products with remarkable speed and has held down prices so that average households can partake. The ready availability of inexpensive imported consumer goods has boosted living standards around the world.²

As wage earners, on the other hand, workers have every reason to be ambivalent. In the decades after World War II, wartime devastation created vast demand while low levels of international trade kept competitive forces under control. In this exceptional environment, workers and trade unions in North America, Western Europe, and Japan were able to negotiate nearly continuous improvements in wages and benefits, while government programs provided ever stronger safety nets. The workweek grew shorter, disability pay was made more generous, and retirement at sixty or sixty-two became the norm. The container helped bring an end to that unprecedented advance. Low shipping costs helped make capital even more mobile, increasing the bargaining power of employers against their far less mobile workers. In this highly integrated world economy, the pay of workers in Shenzhen sets limits on wages in South Carolina, and when the French government ordered a shorter workweek with no cut in pay, it discovered that nearly frictionless, nearly costless shipping made it easy for manufacturers to avoid the higher cost by moving abroad."

This section was by far the most interesting largely impart to its economic implications. A great debate among economists is whether or not productivity or employment should be the priority and the case of the container is the epitome of this debate. Consumers benefited from having more goods available at a cheaper price. This occurred because it was easier for foreign goods to be shipped abroad. The average worker, however, lost power in debating wages due to the greater competition. It was interesting to see how a simple container can have such a mixed impact on the world economy. 

The author saw the development of the shipping container as a contribute to globalization because it allowed more goods to be shipped around the world faster and cheaper. Although it is not a direct form of transporting goods, it does make the shipping easier. As more goods traveled around the country, the global economy became more competitive and companies were able to expand their markets worldwide. 

Consumers will benefit from this globalization because prices become cheaper and a larger variety of goods is made available for purchase. Business owners also benefit because they can expand their markets and produce and transport goods at a cheaper price. Being confined to a single location once prevented trade, but containers contributed to increased trade around the world. 

News Article

In Germany, business officials are encouraging political elites to ease sanctions against Russia. This has discouraged German Chancellor Angela Merkel from advocating more extreme penalties. The promotion of these sanctions has grown as the crisis in Ukraine has become more serious. Many of Germany's largest companies operate in Russia and tough sanctions could negatively impact one of their largest markets. President Barack Obama plans to broaden the sanctions and Merkel plans to meet with American officials to avoid this. 

Many other countries including Italy, Greece, Egypt, and Japan also have hesitations in increasing sanctions against Russia, fearing the negative impact they could have on their respective economies. One third of German gas and oil is imported from Russia and "there is no question that Germany's economic interests would be best served by avoiding sanctions". It will be interesting to see in the coming weeks whether or not sanctions against Russia will lengthen over the coming weeks as the crisis in Ukraine continues. Determining what is best for both the world and the global economy will continue to be a challenge for the world leaders. 

http://online.wsj.com/news/articles/SB10001424052702303948104579535983960826054

German Transportation

Germany has numerous ports at or around the North Sea. The North Sea is the major waterway with which German trade occurs. Major port cities include Brake, Bremen, Bremerhaven, Cuxhaven, Emden, Hamburg, Leer, Nordenham, Oldenburg, Pepenburg, and Wilhelmshaven with Hamburg being the largest.

Deutsche Bahn is the major German railway infrastructure and service operator and although it is privately owned, the government owns all of its shares. Many cities in Germany have operating metros including Berlin, Hamburg, and Munich. The InterCityExpress is a high speed train system that runs through Germany and neighboring cities such as Copenhagen, Brussels, Amsterdam, and Paris. Germany has approximately 650,000 km of roads. Federal roads are called Bundesstraben. The roads are recognized by numbers and the more important roads usually have low numbers. Odd-number roads usually apply to north-south routes and even-number roads represent east/west routes.

Frankfurt International Airport is the largest airports in Germany and one of the top-ten in the world. Munich and Berlin's airports are respectively the second and third largest airports in Germany. Germany has 320 airports with paved runways and 295 airports with unpaved runways.

Germany International Trade

Germany is the third largest exporter and importer in the world. In 2013, Germany recorded the world's highest trade surplus at about $260 billion. In 2012 the value of exports was recorded at $1.492 trillion. Germany's primary exports are motor vehicles, machinery, chemicals, computer and electronic products, electrical equipment, pharmaceuticals, metals, transport equipment, foodstuffs, textiles, rubber and plastic products. The European Union accounts for 58.2% of Germany's total exports, followed by United States (7%), China (6.1%), and Switzerland (4.5%). The value of imports in 2012 was $1.276 trillion. Primary imports include machinery, data processing equipment, vehicles, chemicals, oil and gas, metals, electric equipment, pharmaceuticals, foodstuffs, agricultural products. The European Union is the primary import partner (58.2%), followed by China (8.9%), U.S. (5.5%), and Switzerland (4.2%). 

The currency of Germany is the Euro. The current exchange rate between the U.S. dollar is: $1= 1.38 Euros. This means that the U.S. goods are cheaper to purchase abroad and cheaper to import. In addition, German goods are more expensive for Americans traveling to Germany. Since the financial crisis, the Euro has consistently been worth more than the U.S. dollar.

Germany has the third largest percentage of migrants world wide at 5%. Most of the immigrants come from other European countries including: Poland, Romania, Bulgaria, Hungary, Italy, Spain, and Greece. Many Turkish people migrate to Germany, but Turkish Germans immigrating to Turkey is greater than the former. 

Throughout the first half of the 20th century, Germany was at conflict with the world. It was the primary instigator in both World War I and World War II. After the fall of Nazi Germany, Germany was split into East and West Germany with the former communist and the latter democratic. After the fall of the Berlin Wall in 1989 and the end of the Cold War, German relations with other countries have been relatively stable and it has been established as an economic superpower. 

A Fez of the Heart Discussion

The first paragraph on page 14 was very interesting. The fact that the fez was outlawed while people could be nude on the beaches was shocking. Villagers had essentially abandoned their culture in order to make a profit and please tourists. Tourists in bikinis initially were stoned and people were vehemently against showing that much skin in public. Once the villagers saw the potential for profit, however, they adjusted their culture to benefit from the tourists. What was once hospitality became a functioning industry.

Tourism can affect both culture and economics. Tourists often disregard a nation's culture while traveling and fail to recognize its significance. They view their culture as the only way and do not adjust their behavior while in other countries. The same goes for economics. If locals see the potential profit from tourists, they will utilize their resources to make money. Foreign resorts are not built for locals, but rather for tourists. In favoring the needs of tourists, countries can abandon the authenticity of their country. It is sad that culture and tradition can be pushed aside to make a profit.

Tourism in Germany

Germany is the second most popular destination in Europe behind Spain. In 2012, data shows that a record 406 million people stayed overnight at hotels or other lodging locations. This is up from 394 million from the year before. Tourists from Netherlands had the most overnight stays in Germany in 2009, with the United States, Switzerland, United Kingdom, and Italy rounding out the top five.

There are numerous types of tourist attractions in Germany. Oktoberfest takes place in Munich and is the largest festival in Germany and brings in around 6 million people. It begins mid September and ends early October. It includes traditional foods and large quantities of German beers. Another famous event is the Berlin Marathon which is a World Marathon Major. Some famous landmarks include: the Cologne Cathedral, the historic city Lindau, Holstentor (city gate to the city Lubeck), and Heidelberg, one of Germany's most popular tourist destinations.

Germany has multiple national parks with the Western Pomerania Lagoon National Park bringing in 2.5 million visitors a year. The national park protects large parts of the Baltic Sea and multiple lagoons in the Darss-Zingst Bodden Chain. Other popular national parks include the Jasmund National Park, the Harz National Park, and Mainau Island. The Rugen Cliffs are located in Jasmund National Park and are another very popular tourist destination.

The Dresden Portrait Museum is one of the most famous art museums in Germany. It displays Italian art of the Renaissance. Germany is also home to a Mercedes Benz museum, Porsche museum, and BMW museum, displaying the importance of the automobile industry in Germany. Museum Ludwig is another art museum that has one of the largest collections of Pablo Picasso art.

Germany Economic Statistics

Germany Statistics as of 2012
GDP: $3.4 Trillion USD
GDP per capita: $41,514.17 USD
Life Expectancy: Male- 78.04 years
                          Female- 82.72 years
Literacy Rate: 99%
Unemployment Rate: 5.1%
Inflation: 1.04%

Germany Natural Resources
Germany's climate is pretty moderate without long-term periods of cold or heat. Northwestern and Coastal Germany have a maritime climate with warm summers and mild, cloudy winters. Farther inland, the climate is more continental with seasonal variations. Summers are warm and winters are cold. The growing season in Germany is typically from March to October. Agriculture land (% of land areas) was last measured at 47.96%. The three rivers, the Rhine, Danube, and Elbe dominate the waterways of Germany. A series of canals help connect the rivers. The Baltic and North Seas are also major waterways that can be utilized for exports. Iron and steel are the main mineral deposits in Germany which has helped develop Germany as an industrial superpower.

Labor
The labor force in Germany was last recorded at 42,522,729 million people. The educational system in Germany is primarily determined by the states and the federal government plays a role. There are five types of secondary education: Gymnasium, Realschule, Hauptschule, Gesamptschule, and Förderschulen/Sonderschulen. Compared to other countries, students can attend higher education at little or no cost, but must prove their capacity by passing exams.

Capital
Germany's industry for manufacturing cars earns the most yearly revenue, with the health sector a close second. Mechanical and plant engineering, chemicals and pharmaceuticals, and electronic engineering and electronics also earn significant revenue. German technology is far more advanced than other countries in the world and have largely impacted the auto industry and medicine industry. However they are still not as advanced as other nations. Germany's infrastructure quality was ranked number 2 in a study done in 2011. They received high remarks for the quality of roads and airports, the rail and port infrastructure, and communications and energy infrastructure.

News Blog Summary 1

In February, Germany's industrial output increased at at a rate greater than projections. This was the fourth consecutive month that this occurred. In addition, Germany's economy at an annualized rate of 3% in the first quarter. In February, output was expected to increase by 0.2% and instead, it increased by 0.4%. Due to increased industrial production and solid retail sales, Germany's expected GDP in the first quarter grew from 0.5% to 0.7%, a 2.8% annual rate. This rate is much improved from the 1.5% expected annual GDP based on fourth quarter projections.

Consumer confidence is the highest its been in the past seven years, showing that Germany has recovered nicely from the Global Crisis in 2008. People seem to be optimistic about the economy. The job market is also doing well, with the unemployment rate below 7%.

Although first quarter numbers have been solid, projections for the remaining three quarters have been lowered due to an expected decrease in productivity. Industrial activity is projected to be slow in the coming months.

Despite the latter, the better-than-expected growth in the February and the first quarter, Germany's economy is preforming very well. As a result of the increased industrial output and growing GDP, aggregate supply and demand will be impacted positively. Aggregate demand will increase as a result of the improving job market and lower unemployment rate and aggregate supply will continue to grow if output is still growing. Supply and demand will both increase, raising the quantity of goods and services along with the price of goods and services. The rise in prices will not decrease demand because if people are earning money with more jobs available, they will be willing to spend more. Overall, the overall growth of output will have an immense impact on the health of Germany's economy.

Although the entire world has been effected by the Global Crisis, Germany has recovered nicely and looks to be heading in the right direction. Germany is an economic superpower and has proven that it can adjust to tough economic times.

http://online.wsj.com/news/articles/SB10001424052702304640104579486691793344298

German Culture

1. Football (soccer) is by far the most popular sport in Germany. The German Football Association is the largest sports organization in the world with over 6.3 million members. The most popular professional league in Germany is the Bundesliga. It attracts the second most average attendance in the world. Germany has typically performed well in international sporting events, winning the FIFA World Cup 3 times, the European Football Championship 3 times, and ranks third in the all time Olympic medal count. Some popular athletes include Franz Beckenbauer, Gerd Müller, Jürgen Klinsmann, Lothar Matthäus, and Oliver Kahn. Other popular sports in Germany include: handball, volleyball, basketball, hockey, and tennis.

2. Some of the greatest composers of all time have come from Germany. Bach and Beethoven are two of the most well-known composers. Germany has the largest music market in Europe and the third largest across the globe. In the past, Germany has had a strong influence on techno and rock music, and even created trance music. Multiple music festivals are hosted in Germany every year and the Rock am Ring festival, the largest in Germany, is one of the world's largest festivals.

3. Pork, beef, and chicken are the most common meats consumed in Germany, with pork being the most popular. Schweinshaxe (braised pork) and Saumagen (pork stomach) are two traditional dishes. Meat is generally consumed in sausage form and over 1,500 different types of sausage are produced every year. Germany has a popular saying "breakfast like an emperor, lunch like a king, and dine like a beggar."Bread is also very popular and over 300 types are sold across the country. The national alcoholic beverage in Germany is beer and consumption per year is ranks among the most in the world. Some popular beers include Alt, Bock, Lager, Malzbier, and many more.

4. 64.1% of Germans are affiliated with Christianity of some form. 32.7% are Protestant, while 31.4% are Roman Catholic. The North and East are mostly Protestant and the West and South Catholic. Germany was a major part of the Catholic Holy Roman Empire, but was also the home of famous reformer Martin Luther. Judaism and Muslims are also prevalent. There is a non-religious majority in most of the former East German states.

5. Germany celebrates many of the traditional Christian holidays such as Easter and Christmas. The only federal holiday is German Unification Day on October 3 which celebrates the reuniting of East and West Germany. Although not a national holiday, Oktoberfest is a celebrated tradition that originated in 1810. The beer fest begins on a Saturday in September and usually lasts between 16 and 18 days, ending on the first Sunday of October.

6. Germany has a solid past and has achieved recognition by the American academy for several movies. The Academy Award for Best Foreign Language Film went to Die Blechtrommel (The Tin Drum) in 1979, to Nowhere in Africa in 2002, and to Das Leben der Anderen (The Lives of Others) in 2007. Some of the most famous German actors include Marlene Dietrich, Klaus Kinski, Hanna Schygulla, Armin Mueller-Stahl, Jürgen Prochnow, Thomas Kretschmann, Til Schweiger and Christoph Waltz. The Berlin Film festival has been active since 1951 and is one of the most famous in the world. The European Film Awards are held in Berlin every other year.

7. http://www.spiegel.de/- News source similar to the New York Times.
https://www.deutschland.de/de- Magazine with topics of culture, politics, business, and science.
http://www.thelocal.de/- Provides all the latest news of events in Germany.
http://www.dw.de/- Broadcasting station that provides top stories, press releases, and analysis of current events.

8. http://www.alloexpat.com/moving_to_germany_forum/germany-general-talks-news-germany-tips-f3.html?sid=b2cd3d3eddc7840c513c8a5ea2b84d22- Forum with general tips on living in Germany.
http://www.alloexpat.com/moving_to_germany_forum/germany-dating-get-together-meet-germany-friends-f9.html?sid=b2cd3d3eddc7840c513c8a5ea2b84d22- Forum that provides advice about dating and making friends in Germany.
http://www.alloexpat.com/moving_to_germany_forum/germany-entertainment-nightlife-dining-shopping-in-germany-f7.html?sid=b2cd3d3eddc7840c513c8a5ea2b84d22- Forum that describes the things people can do in Germany.

9. Germany is a federal, parliamentary, representative democracy republic. The president is the head of the state and is elected by the Bundesversammlung (federal convention). an institution consisting of the members of the Bundestag and an equal number of state delegates. The second most powerful official is the Bundestagspräsident (President of the Bundestag). The third most powerful official is the Chancellor and is the head of government. Germany has two main political parties, the Christian Democratic Union and the Social Democratic Party of Germany. Joachim Guak is the current president of Germany, Norbet Lammert is the President of the Bundestag, and Angela Merkel is the Chancellor.

Reinventing the Bazaar Chapter 1 Discussion

"A market for something exists if there are people who want to buy it and people who want to sell it." Although this may seem to be a relatively simple explanation, it is the foundation of market economies. For a market to work, people must be willing to sell and buy goods freely. Both parties must have the opportunity to negotiate, reject, or accept an agreement in a market. In other words, autonomy is essential in the creation of a market. In addition, "no one is in charge of a market-- or rather everyone is in charge." The transactions and freedom markets instill, mold an economy as a whole. 

"Markets provoke clashing opinions. Some people revile them as the source of exploitation and poverty. Others extol them as the font of liberty and prosperity." Both arguments in the quote are present in the modern economy. The debate, however, is not as prevalent in times of prosperity. Only when an economy falls into a recession or depression do people start questioning whether the government should intervene in the markets or let them expand on their own. 

People may distrust markets for multiple reasons. In the United States, the unequal distribution of wealth causes people to question the fairness of markets. They see millions of Americans in poverty and question the benefits of a free market system and encourage more government intervention. 

On the other side, many people are vehemently apposed to any government intervention. They believe that even in a crisis, government involvement would do more harm and disrupt the markets, rather than benefiting the economy.  

In regards to this debate, I fall somewhere in the middle. I believe that a market economy is the most effective method to developing a strong economy. However, in times of crisis, government intervention through fiscal and monetary policy can be vital to jump-starting the economy and initiating an expansion as long as the policies are short term. The government also can play a role in providing support for those in poverty and helping them better their lives. Lowering the poverty rate would strengthen the middle class which is an essential aspect to any economy. 

Market rules are essential for a market-based economy. "Only when the informal rules are supplemented by some formal rules can a market reach its full potential." An important regulation necessary in markets is limited the amount of risk banks can pursue. In addition, instilling rules that promote more openness in a market is also essential. Asymmetric information can lead to an inefficient market and played a role in the financial crisis of 2008 when mortgages from borrowers who could not afford a home were being packaged into mortgage-backed securities. Had proper information been made available, the crisis may not have been as devastating. There are numerous ways to regulate markets and this regulation is essential to maintaining the functionality of a market economy.  

Discussion on "Why Did Human History Unfold Differently On Different Continents For The Last 13,000 Years?"

History repeats. This is a simple yet powerful statement. Any individual who has any understanding of history understands the constant recurrence of mistakes in almost all aspects of history. The repeating of history, however, is not limited to mistakes. It is evident in the development of the world the past 13,000 years. In his article, Jared Diamond discusses why history unfolded differently on the continents of the world. In essence, history repeated in such a way that Europe and Asia developed at a more rapid and consistent pace than did the Americas, Africa, and Australia and conquered nations in the less developed countries with ease. 

So why did Europe and Asia develop more than the other continents? Diamond does not attribute this dominance to differences in human biology, but rather in the resources, technology, geography, political organization, and other variables. 

In the Americas, the Aztecs and Mayans lacked the iron weapons possessed by the Europeans and were unable to defend themselves with stone weapons. They simply had insufficient technology to develop at a rate comparable to the Europeans. 

The domestication of animals and plants also played a major role in the rapid development of Europe and Asia. First, Europe had more mammals and plants that met the prerequisites for domestication, whereas the other continents had 1 or  2 max. These domestic animals, however, came with diseases and when brought to the Americas, played a role in the destruction of the natives' populations.

The domestication of animals also allowed Europe to advance past the hunter and gatherer lifestyle. Animals made farming easier and more output was produced. As Europe became more efficient, the population began to increase. With a greater population, it became easier to invent and innovate, resulting in a more advanced society. 

Therefore, the environmental different rates of progression among the seven continents. Europe and Asia did not advance more rapidly than the other continents because they are more advanced humans. They lived in an environment that provided the resources necessary to grow that the other continents lacked. 

This simple concept can be applied to the modern global economy. The world's superpowers should be utilizing their wealth, power, and resources to help developing nations grow and become more in tune with modern technology and social structures. This could help lessen the gap between the wealthy nations and those who simply do not have a way to compete in the world.