Topic 14: Productivity Experiment

In this experiment, we are testing the efficiency of the production as the number of workers increase. I am a worker in this experiment. The production went well when it got closer to the end. Problems came up when too many workers are doing the same job, when there are not enough capitols, and when people are not specializing.The production didn't go the way I expected, because the production is really random. The number of the production goes up and down, no matter how many worker increased. I think this happen is because the limited capitols and each worker's efficiency. Sometime people slack off a bit, and sometime it is the lack of capitols that cause the production goes bad. This result is pretty surprising because I didn't expect it goes up and down. I thought the graph would be like what the textbook described. The production goes up as the worker increase and when it reach a certain point. It falls back down. I think the company could do for the short-run is company should tie the company's wealth to the worker in order to encourage the workers to work harder, or the boss can make the entire production line more organized. For the long-run, company should increase the capitols, so more people can do other jobs, instead of everyone crazily doing one job.

Topic 13: The Return of the Zeppelin

Determinants of demand are the prices of related goods, expected future prices, income, expected future income, population, and preferences. Determinants of supply are the price of factors of production, the prices of related goods produced, expected future prices, and technology. The determinants that apply to the success of Zeppelin and to Airship Ventures are technology, preference, and expected future price. Bank investment is one of the determinants of success of Zeppelin. If no one invest, the cost will be very great! Technology has totally change the return of Zeppelin. They change the gas in Zeppelin from hydrogen to hellion, so the Zeppelin won't explode when it react with oxygen. Also, the technology make the experience better by reducing the noise and the machine. Airship Ventures is an oligopoly, only three airship company own a Zeppelin and only one in the United States. Three determinants of demand for the success of Airship Ventures are preference, expected future prices, and the prices of related goods. People's preference decrease when the Zeppelin exploded years ago, and decrease the demand for it. The prices of related goods also affect the success.  If a hot air balloon can do the same thing but cheaper, then people will tend to go with hot air ballon. I think airship travel is not a good idea. Only when the price of the Zeppelin is lower than the related goods, I will consider it.

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.