Topic 12: Pizza for Pesos?

This video regarding pizza for pesos relates to the idea of utility because because the consumers have to decide whether buying pizza in pesos will increase their utility. Utility is the satisfaction consumers gain from buying certain products. Utility is not measured in any units. It is simply a "satisfaction" and each person will have a different scale of utility. Do they feel like they gain more benefit or more satisfaction when they buy pizzas in pesos? Or is it better to just buy it in American dollar? It also deals with consumer preferences because consumers have to decide whether they prefer to buy pizzas in pesos or in american dollars. The exchange rate definitely plays a big role in the consumers' decision because if one dollar is more expensive than the other, then consumers will of course choose to buy pizzas in the cheaper dollar. If the value of pesos increases, then the budget line of the consumers using pesos will also increase. So vice versa. I agree with the argument against accepting pesos. These arguments relate to our previous discussions regarding international trade because it has to do with the country prices and world prices. World prices can affect how people want to buy their pizzas.

Topic 11: Brand Names and Utility

Brand names definitely gives you more utility than do products that do not have brand names. When we hear brand names, we automatically think that they are, well, great. I think this might just be some psychological aspect of our minds. These companies spend a lot of money on advertisement and making their products look appealing.It is also more credible to buy brand name products because you've heard it from other people or from the advertisements a lot so you know that the products have to be good. It feels better when I buy a real abercrombie shirt than when I buy a fake one that spells abrecrombie. I just HAVE the feeling that the real one has better quality. However, sometimes when a product is too expensive, one may consider to buy a similar product that is much cheaper. If a no-name product has the same durability, quality...etc as the brand-name product, it will eventually have the same, or even more demand than the brand-name product. However, this takes time because people have to first try it out and if they like it, they will become loyal customers. They will then suggest it to friends and it will slowly spread. Some examples of brand-names that are unimportant to me are clothes that are ridiculously expensive and have cheaper versions that look almost exactly the same with the same quality. And things that do matter are products like iPhone, expensive bags, and food (because brand-names seem more reliable and edible....)

Topic 10: Consumer Preference and Utility - Skechers

The audience/ customer group of Skechers shoes is between the age group 12-24, the "youthful age". People who want to feel young and cool buy skechers. These are shoes that look stylish and unique, and are comfortable. They advertise through magazines, which according to O'Connor, have longer shelf lives. They pass the information down to more people. They also use/hire celebrities to help them advertise. This is a psychological advertisement because many people want to wear what celebrities wear. The Skechers company kept inventing innovative shoe styles, such as the roller blades, leather boots, and suede sneakers. However, their most important target it to create permanent customers and customer loyalty. Skechers is known for their comfortable soles, so customers who bought their shoes once would come back and get more. The company has many stores from New York to LA, mostly in cities and urban areas where there are more people and shopping and advertisement are big things. I have a high utility for sunglasses. I love sunglasses and I have many types of them, aviators, Ray
Bans... etc. They're very stylish and useful during the summer when you can't open your eyes under the sun. On the other hand, I don't have a high utility for smart phones (at least for now). I'm satisfied with my blackberry-looking phone which is neon green. I don't really see the point of having it because I already have an iPod touch, but smart phones seem to have a high utility for other people.

Topic 9: The Myth of Outsourcing's Effect

Globalization is the international exchange of world views, ideas, languages, products, and other aspects of culture. For instance, the spread of English as a global language is a sign of globalization. Comparative advantage is when one country can make something at a lower cost than anywhere else. For example, China can make toys and clothes at a lower price than any other country. Therefore, many things are being made in China now. Outsourcing is when a company or firm uses the resources and labor in other countries. The most famous example is outsourcing in India. Many people call customer service that is supposed to be in America but is actually an Indian guy in India answering your call and helping you out. This is because the labor in India is cheaper. Globalization and comparative advantage leads to outsourcing because when it is cheaper to make something in one country, then outsourcing will occur. Outsourcing can be very efficient because it will lower the price of goods and services and will increase the demand for products. However, the opportunity cost of outsourcing is the unemployment that the home country will face since all the jobs are now moved to other countries.

Topic 8: Debate on Globalization

Convergence is the idea that poorer economies per capita incomes will grow at faster rates than richer economies. In China and India, for example, their qualities of life improve rapidly over each decade. However, in more developed countries, they often grow slower. Globalization has costs and benefits. It has improved the quality of lives in many of the less developed countries. However, the costs are that the companies from other countries will take over the local companies and insinuate themselves into the country's political process. Globalization has already significantly changed my life in many ways. The Internet, the things I buy, the clothes I wear, and the Macbook I use are all results of globalization. Without globalization, I obviously wouldn't be speaking or typing English right now and I wouldn't be listening to all the English songs on radio. Taiwan is actually a country that has been greatly changed by globalization. Many advertisements and products in Taiwan are now exported from other countries. We have all the Hollywood movies in theaters and many people in Taiwan do and can speak English. I'm actually glad that globalization is happening in my life (although that would be biased to say so because I have never experienced the non-globalized Taiwan) so that I can be in touch with more resources in the world and become a more knowledgable person.

Topic 7: Government Farm Subsidies

Farm subsidies are money given to farmers to stop them from farming. The point of view of the video has a more negative view of the subsidies because it uses many evidence and people who are against the subsidies. I do agree with the video because farm subsidies don't really solve the problem they intended to solve. First of all, farm subsidies usually go to the very wealthy farmers and it doesn't help small farms by making it harder for them to compete. Although farmers get paid for not farming, agricultural prices continues to rise. Loopholes in the farm bill allow non-farmers to collect farm subsidies for their residential properties. The bill is not exactly fair for all farmers and is not necessarily beneficial to the economy. Supply is supposed to decrease from the subsidies because the farmers are paid for not farming. Farm subsidies are intended to be consumer-friendly and taxpayer-friendly. Instead, they cost Americans billions each year in higher taxes and higher food costs. I think colleges should still have support from the government because many people need financial aid to attend college. People who don't have school-aged children should not have to pay taxes to support schools. 

Topic 6: Opportunity Cost of a College Education

Marginal analysis is when people make make decisions, they consider the next unit of it. For example, how many percent will my grade increase when I study one more hour. It is useful in helping you weigh the pros and cons of a decision made. It helps us see whether a unit of something will help the marginal benefit increase the marginal cost. The marginal cost of one more year of higher education is the time you spent studying and going to classes. The time may have been spent on working and we also have to consider the tuition and extra fees spent when studying. The marginal benefit of one more year of higher education is the chance to get a better paid job in the future. The argument that college graduates earn $1 million more than non-graduates may not be exactly accurate because the data might be skewed by the few people who earn a lot of money. Also, those who self-select to go into college are already predicted to earn more money. They would've done as well even if they didn't go to college. Some students leave college after one year because they think the marginal cost is higher than the marginal benefit of one more year of college. They may perhaps think they are wasting their time. Therefore, some people drop out to work and earn money. My parents have always believed in going to a prestigious college and getting a better job and pay in the future. This has always been the case in my family and I guess I have already been brainwashed by this idea too deeply to be easily affected by this short clip of video. Although sometimes I question myself for working so hard but in the end I might not get a good job. Even so, I am still going to apply to a good college for the benefit of my future, says Pamela.