Topic 12: Pizza for Pesos?

Hispanic Immigrant in United States has always been a problem; however, Pizza Patron starts accepting people to use pesos with dollars and credit card to purchase pizza. The head of Pizza Patron wants to give convenience to consumers who possess pesos. And from my point of view, I think the idea of pizza for pesos relate to utility because this economic strategy might attract consumers who accept or like Hispanic culture; conversely, it might also distract to consumers who does not have inclination to Hispanic culture. According to the video, we can see that many consumers are complaining that Pizza Patron accept pesos, because accepting pesos in American can undermine American culture. Illegal immigrant has already been a problem; therefore, this acceptance might just escalate the problem. Exchange rate is considered as another serious problem. By exchanging dollars from USD to Pesos, supplier and consumer will eventually cause a gap between accuracy and fairness of exchange rate. In other words, using different currency might make the trading more intricate or cause unnecessary problem. Why illegal immigration is such a big concern? Statistically, nowadays there are 800 billions dollars in Hispanic market, which means American’s jobs are being undermined by this immigration. 

Topic 11: Brand Names And Utility

In nowadays society, people have certain inclination to buy certain product. By looking at the demonstration in the video, even though there are many kinds of peanut butter, consumers still choose the one that might be the cheapest. Choosing cheap product not only because consumers want to save money but also because consumers seem to care about products' price more than products' brand. Personally, I don't have high utility on buying famous brand of food. I can easily be satisfied as long as I think food's quality is as same as its price. However, sometimes, I have high utility on buying clothing stuff. Comparing my demand curves with non-name products, I will not buy non-name products, even though it is sold in a low price. Conversely, if it's famous brand such as Nike, or Adidas, then my quantity of demand will increase while the price of the clothes is decreasing. For instance, if a Nike T-shirt costs 1000, I will probably only buy one; however, if the price of T-shirt decreases, then I will probably go for two. In conclusion, every people have different utility towards different products; therefore, companies have to figure out what product they made can attract most of people with high utility. 

Topic 10: Consumer Preference and Utility

In this contemporary society, sellers have been using different attractive and intelligent strategies in order to get consumers’ attention. For instance, nowadays teenagers from age 12 to 24 have tendency to buy products Skechers not only because it’s fashionable but also because it’s comfortable. Using advertising in magazine, Skechers Company is trying to promote its products by passing down information from one to another. In order to be the most competitive, Skechers Company has been inventing creative product such as roller blades, and leather boots. Creativity is essential in contemporary market, especially for teenagers. Skechers had located many stores in New York and Los Angeles, where are considered as one of the most popular and famous cities. In such urban area, Skechers believe they will receive more consumers. Skechers’ strategy was successful, because once it spreads out the popularity of its product, teenagers will tend to buy more not only because they become permanent consumers but also because their friends affect them to buy. Personally, I have high utility on Apple products. Actually, I think many people have high utility on Apple products. Apple Company has been innovatively created many new electronic products, which are both more useful and stylish than other products. For the products that I have low utility but other might have higher are scissors for cutting hair. One of the most expensive scissor can cost as much as iPhone. 

Topic 9: The Myth of Outsourcing's Effect

Globalization, comparative advantage and outsourcing are closely associated with each other. Famous companies like Nike, Adidas or Apple demonstrate great example of the connection among globalization, comparative advantage and outsourcing. In order to benefit its own comparative advantage, big company is globally looking for cheap labors, who can provide good service while receiving minimum wage. By having outsourcing, big company provoked a tendency of losing jobs in its own country. More and more people's jobs were replaced by those cheap labors, who lived in China or India. Those outsourcing requires physical strength, which means labors do not have to possess any skill. Of course, due to the huge populations, famous companies started moving their factors to China or India in order to hire cheap labors. The more labors a company has the more product the company will produce. Once the quantity of supply increases, the price of supply will gradually decrease. Outsourcing has to do with opportunity cost, as I mentioned earlier, because the companies can maximizing their benefit while minimizing their cost. Statistically, even though people seem to lose their jobs in their country, outsourcing literally created more job opportunities in other countries. By looking at the data provided in video, we can see Job Lost goes up to 391 million; however, Created job goes up to 411 million, which is higher than Job Lost. Therefore, people seem to fight against the outsourcing in their countries; conversely, outsourcing allowed 20 million people to have jobs within 4 years. According to the video, outsourcing shouldn't be a problem until people start thinking to stop it. 

Topic 8: Debate on Globalization

In this contemporary society, many developed countries have tendency to hire those cheap employees from huge population countries such as China and India; therefore, those employers can maximize their benefits by minimizing the cost of labors. Globalization, in terms of economics, can be defined as beginning to operate business throughout the world. Developed countries, such as United States, established many factors with labors from both India and China; unfairly, those labors normally will receive a minimum wages. By looking at this video, we know the issue is more associated with macroeconomics, which symbolizes national economics, and the video also demonstrates the interaction between two countries can cause great global influences. 

Topic 7: Government Farm Subsidies

Even though government provides subsidies to producers, who are farmers, producers don’t think passing this bill of giving subsidies is a good idea, because those farmers are considered as rich people, who earn twice what the average American earns. And I strongly disagree with this assumption, because I think government shouldn’t offer money to rich people; conversely, government should offer those subsidies to poor people in order to let them have more opportunities to find new jobs or live with better lives. People, who have own farmlands but are not farmers, also received subsidies, because government want to suppress the growth of crops. Looking at the video, we can obviously tell the reason why some politicians support this assumption of giving out subsidies to crop framers is that they want to win the elections. Subsidy was come from citizen’s taxes; therefore, the government should provide subsidies to organizations such as colleges, and universities, in which can benefit people the most. Yes, people who don’t have school aged children should also pay taxes to support schools; as a result of those people were once students, and in order to form an equal society, all the people, who supposed to pay taxes, should pay taxes to government; however people also have rights to affect government’s decision of how to use those taxes.