Topic 12: Pizza for Pesos?

The idea of utility is illustrated in the video. The utility of the consumer increase when they are able to pay a pizza with Pesos instead of U.S. dollar. Because the pizza can be paid for pesos, the consumer preference for that pizza patron has increase. They prefer to pay it with Pesos rather than U.S. dollar. I think there will be a big change if the exchange rate between Mexican Pesos and U.S. Dollars raises or fall. If the exchange rate between U.S. dollar and Mexican Pesos fall, then more Hispanic costumers will come here and spent more money. If the exchange rate between U.S. dollar and Mexican Pesos raises, then less consumers will use Pesos to buy pizzas. I think the argument against accepting Pesos is half right and half wrong. Accepting Pesos can increase the consumer spending which help the economy of U.S., but at the same time, Mexican can cross the border with not too much worry, because they can buy food at Pizza Patron and exchange money at Pizza Patron. The exchange of money is also a kind of international trade. Using Pesos to exchange for pizza or U.S. dollar can be regard as international trade.

Topic 11: Brand Names and Utility

Brand names have a huge effect on the utility that a person receive when consuming goods or services. People generally think that goods or services with brand names are better than those with no brand names. To me, it really depends on the product we are looking at. For foods and drinks, my demand curve for brand names and no-name are usually very close, because foods and drinks usually have not much difference on taste or quality, at least I cannot tell the difference. For example: Coke and Pepsi. Coke and Pepsi taste the same to me, so I would only buy the cheaper one. For electronic devices, I would prefer products with brand names more than no-name, because electronic product is a long-term used item. I want to make sure that it won't break that easily because electronics are usually expensive. For example: a random earphone and Beats. I would rather buy Beats because I can trust the quality of Beats, but not the random earphone. If all things being equal, such as quality and durability, I think a product having a brand name will not bring me more utility, because in this case, a cheaper product will bring me more utility than brand name.

Topic 10: Consumer Preference and Utility - Skechers

Skechers access consumer preferences in the target markets by letting the focus group to give them feedback and they have young workforce that seeks out information in nightclubs. Personal selling, sales promotions, public relations, and advertising are four strategies Skechers use to promote their product. Skechers has carried out an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots, and all other varieties. Skechers differentiate themselves through locations. Skerchers located in desert and mountainous regions where people are more likely to wear the shoes. Skerchers choose those kind of region, because in mountainous area people tend to break their shoes faster than the people who live on flat landscape. I think the strategies used by Skerchers may actually change my preferences for clothing, shoes, and other stuff. For example: In a extremely cold region, my preference will switch from T-shirts to jackets. I think video games have a high utility for me, because the happiness I gained from getting a new game exceed happiness I gained from many other things.  Sport Cars seem to generally have a high level of utility among other people, but I don't feel they are that valuable. To me, sport car is just same as a car. It transport people around and that’s it.

Topic 9: The Myth of Outsourcing's Effect

• Globalization is the process of interaction between people of different places. The comparative advantage is the advantage of making a product comparing to the other company. Outsourcing is moving out the company into a place that has a comparative advantage over the current one. Globalization and concept of comparative advantage are related to the practice of outsourcing. Because other countries has a comparative advantage on human capital, a country will outsource their factory to other country. The characteristics of an open economy are the money spent don't have to equal to its output and one can loan money from another. The production costs will be expansive without the implementation of outsourcing. The production costs will be cheaper with the implementation of outsourcing, because the other countries have the comparative advantage of doing it. Although outsourcing can increase production and efficiency, but sometime it can't when the labor is not skilled enough, like making airplane. The opportunity cost got lower when factory got outsourced. Because other countries can make the same thing with a lower price.

Topic 8: Debate on Globalization

Globalization to economists is the interdependent economy, but also interaction between people from different places in all ways. The benefits of globalization are technological expansion, liberalization of policies, and more consumer choices. Globalization also lead the Less-developed countries to increase in economic and indirectly lead the LDC to build new roads and other infrastructure. The costs of globalization are corporate accountability, income disparities, adverse effect, and people are displaced. Globalization has affected my life very much. Almost all stuffs I used in live are imported from foreign countries. The computer I used is probably made in China and the material it was made is probably from Africa. The resources are shipped from Africa to China. Without globalization, these are probably not possible, even it is possible, it will be very expensive. Without globalization, many of the invention or production will not be possible. I wouldn't able to communicate with my friend instantly. Taiwan been affected culturally, the culture of Taiwan is a mixed of Western and Eastern culture. People I know including me are not wearing traditional Chinese clothes, but American style clothing.

Topic 7: Government Farm Subsidies

The government subsidies go to farmers who earn less than one-quartar million a year and everyone should receive according to the situation. The producers of the video do not support the idea of farm subsidies. The producers thinks that all the subsidies go to the rich farmer, but not the poor farmer. People are leaving the town, because they are not earning enough. It just like a treasure box, people who got the most out of it just run away with it. I agree with what the producers say, because there is no point to give "subsidies" to rich people! Other kinds of subsidies should be allowed, only if they are fair. I would say completely free market would be better, but I prefer some subsidies, because some nature disaster and some unfairness just could not be eliminated. Education should be supported by subsidies. All college and schools should be receive some subsidies, because money certainly help the education by hiring better teachers, improving environment, and getting the newest way of teaching and information. People who don't have school-aged children should pay taxes. More educated people certainly benefit people who pay the taxes. 

Topic 6: opportunity cost of a college education

Marginal analysis is analysis of your next unit of addition stuff. People can compare the cost of their action to its benefit and make a better decision. The marginal costs of one more year of higher education are the experience you can gain from working, and the time you can travel around or do anything you want. The marginal benefit of one more year of higher education is the better job you can get in the future. The college graduates earn $1 million more in their working lives than non-graduates is not true. There are statistics about non-graduates earn more than the college graduates. The non-graduates earn money and they gain experience from the job during the time the college graduates are studying. The non-graduates are drop of college because most of them cannot afford tuition even with finance help. To them, the cost of college is too much compare to the benefit of going to college. After I watched the video, my mind still didn't change about going to college. Although it is expensive, but I believe I can live better after I graduate the college.