Country Profile for Spain: Part 4

1. Spain exports goods and services mainly to France (16.0%), Germany (11%), Portugal (10%), Italy (9%), and the United Kingdom (7.0%). Imports come from Germany (14%), France (13%), China (9%), Italy (8%) and the Netherlands (5%).*
     a) Exports: cars, medicines, textiles, petroleum oils, raw goods.
     b) Imports: cars, car parts, medicines, seafood, textiles, raw goods, machinery.

2. The current Dollar Euro exchange rate is 0.768 (2013).

3. Spain's population has been in decline do to emigration rates overtaking immigration rates. Those who immigrate to Spain are mainly from Romania, Morocco, the United Kingdom, Bulgaria and Germany. Those who emigrate from Spain go chiefly to the United Kingdom, the Netherlands, Portugal, Canada, and the United States.

4. Spain has maintained generally good relations with most of the countries in Europe, including the United Kingdom, France, Portugal, and Germany. It is also a broker in the Middle East. In regards to conflict, there has been a longstanding territorial issue with the United Kingdom over the status of Gibraltar. There is also a territorial issue in Morocco, with Spain claiming the two Spanish exclave cities of Ceuta and Melilla and Morocco fighting against this claim.  



*Statistics from 2012.

News Summary 2: Rajoy announces less harsh cuts in 2012 and expects to not raise VAT and Income Tax

http://www.larazon.es/detalle_normal/noticias/1995533/economia/rajoy-anuncia-recortes-menos-duros-que-en-2012#.UXcpASvwJRE

1. The Spanish government has recently been in the process of approving and carrying out many reforms. The most recent batch of reforms, approved on Friday by the Council of Ministers, does not include changes in the pension system or introduce new tax increases, which will unfortunately cause further cuts in public spending. At this point in the economic crisis occurring in Spain, the chief executive of the Council of Ministers, Mariano Rajoy, believes that these reforms "are not an option but an obligation".

2. With further public spending cuts, GDP will continue to fall. When government spending decreases, it negatively impacts national GDP. If the GDP goes down, then consumers are less likely to spend or invest and it all continues in a downward spiral.

3. The economic crisis in Spain has led to this issue. However, the Spanish government is putting together these reform packages to improve the economy in the future by creating jobs and support small entrepreneurs. The government predicts that the economy will continue to grow in 2013 but very slowly. The best thing they could do would be to invest and try to not cut government spending too much.

Chapter 4 Blog Assignment

a)  I found the passage "...most tourists lack the general knowledge of normal price levels and the ability to judge quality of workmanship" to be particularly interesting because I completely agree with it. I've been a tourist numerous times and whenever I wanted to purchase a souvenir from a street vendor, I really had no idea why everything was priced the way it was or how to set a bargain, especially when it came to jewelry. They almost always look very expensive and the gems look real, but the vendors really have no proof that anything is what they say it is. They just roam the beaches with wooden cases filled with silver jewelry and gems. On one particular vacation, my mom and stepsisters bought rings that the vendor said had real Tanzanite in it for a pretty high price. When we got home, my mom took her ring to a jewelry store and they said the supposed gem was actually just colored glass. The vendor was incredibly nice and even lowered the cost to something both he and my mom agreed on, but he still got a lot of money for something worth maybe $5. Had we gone to a jewelry store in the United States, the risk of buying a fake gem is significantly lower because the store likely has proof that the gem is real and advertisements would help us choose where to go. In a Mexican resort, there are dozens of vendors selling essentially the same items and all we have to go on is their word.

b)  A transaction cost is the cost of inconvenience that a buyer experiences when trying to make a good purchase with little to no information. For example, if someone wants to buy a couch and they don't know if the price at one store is too high for the quality of the couch they're selling, that buyer accumulates transaction costs by traveling to other stores and spending time trying to figure out if their couches are any better. With more information available, transaction costs are lowered.

c)  Imperfect information leads to inefficient market function. Without devises like advertising, it is hard for buyers and sellers to find each other and transactions that could have been beneficial to both parties aren't made so they both lose. It is also hard for buyers to feel comfortable making purchases when little information is available because they're afraid of being taken advantage of in both price and quality. Really the only party that gains from uneven information flow is the market intermediary.

A Fez of the Heart Assignment

a) A passage in the reading I found particularly interesting was "There is a yawning gulf between their lives that cannot be closed, only recognized. The shrine is testimony to a time when life in Pomegranate changed so fast that the tools of working men were museum pieces before those who once had used them had had time to die" (Page 5). I thought this passage was interesting because it really makes you think about how quickly things in life change and how sometimes you don't notice it. For instance, with the increased cost of education has come the increased popularity of online classes and textbooks. People have attended colleges and universities for hundreds of years, but now that more people seek an education and cannot always afford it, some of them turn to the internet. In terms of Pomegranate, the city completely changed in the span of 20 years simply because tourists wanted to go there. A person who was born and raised there before the tourism boom saw this incredible metamorphosis in their lifetime and I find that pretty remarkable.

b) A big issue the author seemed to have with what happened in Pomegranate was the effect economics had on the culture of the city. In many locations, economics and culture go hand in hand in the form of historical tourist sites and celebrations. In this particular case, however, economics completely changed the identity of the people and their customs in Pomegranate. Being primarily Muslim, the city valued modesty and when women started strolling around in their bikinis, the people did not approve and even stoned them. But as the tourist populations continued to increase, it seems that the customs the people once valued became history. Economics in the form of tourism caused the culture found in Pomegranate to be eradicated. Locals didn't mind the large numbers of half naked women walking around and they adopted foreign cuisine and merchandise. In a sense, the Turkish culture once found in Pomegranate was pushed aside so that the city would be more modern and appealing to tourists.

c) People are drawn to the historical sites I listed in part 3 of my Country Profile because of their majesty and beauty and they serve as a reminder of how life used to be. The Alcazar de Segovia was a necessary fortress back in medieval times when the region could be invaded by foreign armies. Now it stands as a majestic artifact. Natural parks such as the Doñana bring in tourists who have a great appreciation for nature in its untouched state and wish to see it preserved.

Country Profile for Spain: Part 3

1. Tourism is an incredibly important source of income to the Spanish economy. Spain is well known for its beautiful historical monuments, tranquil Mediterranean beaches, and exciting nightlife. Many of the tourists that travel to the different regions of the country are from France, Portugal, Britain, Central Europe and Scandinavia. Tourists from the United States aren't as frequent visitors but they do spend substantially more money during their stay than tourists from other countries do.

2. The most popular cities in Spain are Madrid, Barcelona, Grenada, and Toledo. In these four cities alone, one can find a tremendous mix of culture as well as seemingly endless historical sites, festivals, and gorgeous landscapes, but the country is full of major tourist attractions. The Alcazar de Segovia, Escorial, Sagrada Familia, and the Aqueduct of Segovia are among the popular historical sites to visit. Other than site seeing, people flock to Spain during all seasons to either relax on its beautiful beaches or go skiing in the Pyrenees.

3. Spain has 14 national parks, some of which have the UNESCO World Heritage designation. Most of these national parks have a good amount of restrictions when it comes to tourism due to the preservation of the parks being crucial to the survival of the species that seek refuge in them. The most popular national parks are Garajonay, Sierra Nevada, and Doñana.

4. Spanish history has been well preserved through art, as many kings commissioned paintings and artifacts from the Americas to be preserved. The country has one of the largest collections of art in Europe. Most of this art is displayed in popular museums across the country, with the most visited being  the Museo Nacional del Prado, the Guggenheim Museum, and the Museo de Bellas Artes.  

Country Profile for Spain: Part 2

• Economic Measures

     1. GDP: $1.347 trillion (2012 est.)

     2. GDP per capita: $30,150 (2010 est.)

     3. Life expectancy: 81 years (2007)

     4. Poverty rate: 21.1% (2012)

     5. Literacy rate: 97% (2007)

     6. Unemployment rate: 26% (2012)

     7. Inflation: 2.4% (2012)

• Resources

     1. Natural Resources
Spain experiences extremes in both hot and cold temperatures throughout the country, except for the north where it is cool and damp. Rainfall is generally low and wildfires are common during the incredibly hot summers. The main rivers are the Duero, Miño, Tajo, Guadiana, and Guadalquivir, all of which are utilized for a source of electric power. Almost a third of the land is able to be used for cultivation as long as careful irrigation is exercised. There are plenty of mineral deposits in the land, the most prevalent being iron ore, pyrite, gypsum, hard and brown coal, and copper.

     2. Labor
The labor force in Spain has been suffering due to the current economic crisis the country is experiencing. Currently, the labor force is roughly 23.11 million people. The educational system is much like that of the United States, with education being required by law from the ages of 6 to 16. After they receive their Certificate of Education, students can choose to go on to university.

     3. Capital
The industry in Spain is quite large, ranging from textiles and apparel to medical equipment. The country also manufactures automobiles, chemicals, metals, pharmaceuticals, machine tools, and clay and refractory products. In regards to technology, Spain is well known for its high-speed railway system. The trains developed and manufactured in Spain are very advanced and are models for railway developers across Europe. Even now, Spanish train manufacturers are evolving new designs that are lighter, better for the environment, energy efficient, and quieter.

Sources:

https://www.cia.gov/library/publications/the-world-factbook/geos/sp.html
http://www.spanish-fiestas.com/spain/geography/
http://www.spaintechnology.com/icex/cda/controller/pageGen/0,3346,1549487_6719802_6728366_4492765,00.html
http://www.expatica.com/es/education/school/Education-system-in-Spain_14443.html

News Summary 1: Many Young Spaniards are Unemployed and Remain Unemployed

1. The issue discussed in this article is that a very high percentage of people under 25 are unemployed as well as long term unemployed. Many have left the labor force entirely because looking for a job was taking too much time and they weren't having any success. The article states that the unemployment of young people has doubled since the economic crisis in Spain began and that six out of ten unemployed people are male.

http://www.20minutos.es/noticia/1776591/0/paro/jovenes/larga-duracion/

2. In class we discussed how income is one of the factors that can cause a demand curve to shift. If more people are unemployed, then they will be less likely to participate in consumption and thus the demand curve will shift to the left. Due to the fact that the majority of those unemployed are under 25, it is possible that the productivity of the country will decline because more and more young people will be unemployed and discouraged from trying to find a job which will cause the future GDP of the country to fall.

3. The current economic crisis occurring in Spain is what led to this decline in the employment of younger people. It has become increasingly difficult to find a job since this crisis began so after months or even a year of searching most people give up trying. A possible solution is for the government to invest more money in education so that more people are qualified for jobs and thus the search time could be reduced and less people would be discouraged or insecure about their employability.

Country Profile: Part 1

• Popular Sports    

     The most popular sport in Spain is football. There are many famous teams, including the Spain national football team, which are the current World and European champions. Spain also has many football clubs, with Real Madrid and Barcelona being the most popular and successful ones.  

Santiago Bernabeu, Real Madrid's Stadium

• Music

     Spanish music has had an influence on many countries, including those in Latin America. Although Spain is known for the flamenco and the classical guitar, the styles of music change with each region. Madrid in particular favors the flamenco and chotis style. Aside from traditional music, Spain is becoming increasingly popular with its pop music from artists such as Enrique Iglesias and Alejandro Sanz. British and American rock and roll bands also had a large impact on styles of Spanish music.

Spanish artist Alejandro Sanz

• Food

     As with Spanish music, the food varies with region. The most popular dishes that can be found in everywhere in Spain include potato omelette, paella, bean based dishes, and desserts such as flan and custard. Seafood also makes up a large part of Spanish cuisine due to the country being mostly surrounded by water.   

Spanish paella

• Religion

     Roman Catholicism is the most popular religion in Spain. The country was first introduced to Christianity under the rule of the Roman Empire. After its collapse other religions like Islam and Judaism became more apparent. Currently, Catholicism dominates the country but younger generations are beginning to ignore its rules and moral doctrines. There are also a large number of Muslims, particularly in the southern regions.

• National Holidays

     With Catholicism being the most popular religion, most national holidays are derived from Catholic celebrations. A maximum of 14 holidays are allowed per municipality. Aside from religious holidays, Spaniards also celebrate internationally popular holidays such as New Year's Day and Labor Day. Regions also have their own local celebrations.

• Popular TV Shows

     Popular TV Shows in the United States are also pretty popular in Spain, but they do have their own set of prevalent shows. The top three most watched shows are Polseres Vermelles, La rosa de Guadalupe, and El Barco, which are comedy, religious, and sci-fi shows respectively. Some of the top movies from Spain are The Orphanage, The Others, and The Big Adventure. One of the most notable celebrities from Spain is Antonio Banderas who is from the region of Andalucia.

    Antonio Banderas

• Online News Resources

     A popular online news source, specifically from Madrid, is 20minutos. It is an online newspaper that reports the current events taking place in Madrid. El País is the most widespread daily newspaper in Spain with El Mundo being the second most widespread. They focus on the news from the country as a whole rather than by region.

20minutos: http://www.20minutos.es/madrid/

El País: http://elpais.com/elpais/portada_america.html

El Mundo: http://www.elmundo.es/

• Online Forums for Expatriates 

www.internations.org/spain-expats

spanish.internations.org

www.eyeonspain.com

• Government

     The Government of Spain is a constitutional monarchy, meaning that the king holds the head of state but has no executive role. He is also the Commander in Chief of the Spanish Armed forces. The current King of Spain is Juan Carlos I and his Heir apparent is Prince Felipe. A daughter of the king can rule if there are no sons born to him. The rest of the government is lead by three institutions: the general assembly of representatives, the assembly of senators, and the judicial branch.  

Sources: 

www.wikipedia.com

http://www.spain-directory.com/2012/06/01/the-most-popular-television-shows-in-spain/

http://www.nationsonline.org/oneworld/news.html

Assignment 2 4/5/13

     In the first chapter of Reinventing the Bazaar, McMillan names many defining characteristics of a market, including it is a place where buyers and sellers exist, the "invisible hand" guides it, and everyone is in charge. McMillan uses a quote from playwright Vaclav Havel to sum up the benefits of a market. He says "...the only economic system that works is a market economy...this is the only natural economy, the only kind that makes sense, the only one that leads to prosperity, because it is the only one that reflects the nature of life itself" (page 7).
     Being only 20 years old, I haven't had the opportunity to observe a very wide variety of economic change or crises that would allow me to have a definite opinion on a market economy, however, I have been able to observe the economic opinions of others. It is evident to me that most people prefer a market economy to its alternatives. I believe the majority of people are against a heavy amount of government interference and thus prefer a free market economy. McMillan argues that markets are "potent antipoverty engines" where they work well. Those in underdeveloped countries who aren't aware of this concept and have seen their government intervene excessively may believe that markets do no good, aren't fixable, and are thus the reason for their poverty. The true reason for the underdeveloped state of a country is simply that the market system is not functioning properly and needs a set of rules, customs, and institutions to reverse the negative effect it is having on the economy. On the other hand, people who have studied world history probably know how centrally planned economies have turned out and are unwilling to support them due to their failure. As I said before, most people aren't in favor of excessive government action and thus would not be in favor of non-market action. Personally, I think a market economy is the best way to go and that the government should only do what is necessary to keep it running properly.
     When it comes to setting rules for a market, I think the by far most important rule is the defining of property rights. No one is going to participate in a market if they believe their property will be stolen. Another important rule is to have some sort of assurance that a transaction will take place between the buyer and seller without one getting cheated. If people don't trust each other then they'll hardly be willing to participate in a transaction.
   

Assignment 1 4/2/13

     After reading Diamond's article, I noticed a few repeating themes. First of all, Diamond believes that the reason why populations in Eurasia were able to conquer pretty much all other populations on the rest of the world's continents was due to the environment and orientation of Eurasia. It has an east/west axis, meaning that its environment is virtually the same across large distances. This allowed both humans and animals to travel long distances without encountering a new environment to which they were not adapted. Thus, knowledge, different plant species and a variety of animals suitable for domestication were available to the populations in Eurasia. In contrast, Africa and the Americas have a north/south axis, meaning that the environment changes as one travels in either direction and thus the populations living there did not have the luxury of being exposed to multiple animal and plant species. They had to make the best of what they had in their particular environment.
     A second theme that ties into the first is the availability of animals that were able to be domesticated. When Europeans arrived in the Americas, they brought horses with them. Native Americans had only llamas and alpacas, both not quite suitable for riding. The ability to domesticate animals was crucial to the development of society because it allowed humans to be more productive in farming and also to travel longer distances. Other than domesticated animals, Europeans also had access to a wide variety of plant species which allowed them to thrive and form small cities that eventually grew into large ones. Native Americans only had the plants that could thrive in the environment in which they were found, and that was not a large area.
     Finally, the last seemingly important theme that Diamond presented was the amount of isolation a population experienced. Eurasian populations were able to contact and communicate with other distant Eurasian populations and thus gain knowledge from them. Australia and Tasmania experienced extreme isolation and were thus even lower in development than the Native Americans discovered in the New World. This degree of isolation kept the Australian and Tasmanian populations from advancing in technologies that populations on other continents had experienced long ago.
     Taking these major themes into consideration, one can come to the conclusion that all of them are important determinants to a society's success. If you take out one major theme, then others would not come to fruition. For example, if you take away domesticated animals, then farming/herding populations would not develop and thus cities would not come to existence. Traveling long distances would also not be possible so contact with distant populations and gaining their knowledge would not occur so technological advancement would not happen. Diamond expresses that it is the environment in which humans find themselves that determines their rate of development rather than biological differences among the populations.
     In today's society, most populations are not farmers and environment no longer determines developmental success as it once did. Sure, there are still underdeveloped countries and their environment definitely contributes to their situation, but modern technology and means of travel have allowed information and knowledge to spread all over the world, even to remote places. Australia isn't in the Stone Age anymore despite its isolation. South American populations are no longer devastated by European diseases. The ability to communicate with populations on other continents and learn their ways of survival has been crucial in the development of society as a whole. Without those key factors that defined development in the past, civilization would not be where it is today.