Revalue? CH 7

       The controversy over the value of the Chinese yuan is an ongoing one. I myself have mixed feelings about the situation. The Chinese government has kept the value of the yuan low making China's exports cheaper and therefore representing an unfair advantage. It is argued that the yuan needs to appreciate and following that the dollar will depreciate. In the long run Americans would benefit because a cheap dollar means US exports would be more price competitive when sold in China and elsewhere. In contrast US firms such as Wal-Mart are not sold on the idea because they are centered in the middle of this controversy. Walmart can sell their products at such low prices because of the current value of the yuan. I do not agree with Walmart's practices however I do agree with their low prices.
      The United States is currently experiencing a recession (depression). Stores such as Wal-mart keep it possible for families to survive. Wal-mart claims that it saves the average American household $2,500 every year. Wal-mart can only keep these prices because of China. Wal-mart's suppliers and competitors acknowledge that there is a wholesale price, a retail price, and a Wal-mart price but what they really mean is there is an "unbeatable" China price. China is the center of Wal-mart's supplier base. China is the largest exporter to the US economy and Wal-mart is the leading importer and retailer in consumer goods. Due to the current economic situation in the United States I have mixed feelings as to whether or not we could benefit on revaluing China's yuan.

CH 5 International trade Commentary

       Why do nations trade? Clearly, there are economic gains from trading Internationally. Otherwise, there would be no willing exporters and importers. As quoted in peng's Global, International trading is a "win-win" deal. Countries have different natural, human, and capital resources, and different ways of combining these resources. Some countries are not equally efficient in producing the goods or services as their residents demand. Therefore countries look else ware for goods and services they may not have the time or resources to produce.
       In Chapter 5 we are introduced to new vocabulary concerning International trade. Export means to sell abroad, while import means to purchase from abroad. Merchandise trade is tangible products being bought or sol and service trade is intangible services being bought and sold. A trade deficit is an economic condition in which a nation imports more then it exports. In the United States the government does not like this type of activity. Clearly, due to the fact that it is in profitable. You are losing money if you are purchase more from abroad then producing more for abroad. You want to export more then you import instead of vice versa. A trade surplus is an economic condition in which a nation exports more then it imports, which is ideally for all countries around the world. Currently, China has a trade surplus.
       In 1776 Adam Smith introduced free trade which is still being used today. Free trade is he idea that free market forces should determine the buying and selling of goods and services with little or no government intervention. Specifically, he introduced the theory of absolute advantage. Absolute Advantage is the economic advantage one nation enjoys because it can produce a good or service more efficiently than anyone else. For example, in Peng's Global CH 5, it states that Portugal's enjoyed absolute advantage over England in producing grapes and wines because Portugal had better soil, water, and weather. Likewise, England had a better absolute advantage in raising sheep and producing wool when compared with Portugal. These supports both of Smith's insights. Primarily, by specializing in the production of goods for which each country has an absolute advantage, each country can successfully produce more. Secondly, both can benefit more by trading. The terms of trade must be such that both countries lower the opportunity costs of the goods they are getting from the trade. Therefore, both countries are successful and profit from the trade, this is where you can call it a "win-win" situation. Free trade is a method that is still being successfully used today.

CH 3 Commentary

        In Chapter three culture is defined as the collective programming of the mind which distinguishes the members of one groupor category of people from another. I agree with this definition that was proposed from the word's of the foremost cross-cultural expert, Geert Holfsteade.
       I do not think some higher being acknowledged some particular person and assigned them a specific culture that correlated with the place in which they were from. I beleve it is the way your brain is correlated to recognize a person, and then you assign them a culture. For instance, if you meet someone that speaks spanish you may automatically assume that since they speak Spanish they are from Spain this is not always the case. I, myself speak Spanish but my father is from Havana, Cuba hence why I speak Spanish. My mother on the other hand is from the Azores but cannot speak a lick of Portuguese. I agree with the point that there is no strict one to one correspondence between cultures and nation-states exists.
        In the beginning of chapter three an opening case is presented about culture. The culture it is focused on is the religion of Muslim. Muslim is a great religion to focus in on considering their current status in the United States. It saddens me as to how uneducated my country really is when it comes to respecting other cultures or beliefs. The U.S. or majority of the U.S. automatically labeled the entire Muslim population as terrorists post September 11th. The truth is Al-Qaeda are the true terrorists. Not the Muslim families who are just trying to make it in their every-day lives such as we are in the U.S. They are human beings such as us, just people who believe in something different. I feel as if people only regress hen it comes to situations as these. It goes to show history truly does repeat itself no matter how much you try to educate a population.