Country Profile Part Four: Scotland Internationally

International Trade
EXPORTS: The five sectors that account for almost two thirds of Scotland's total exports include food and beverages, chemicals, business services, Electronics and instrument engineering, and mechanical engineering. As far as food and beverages are concerned, Scotland exports 36 bottles of whiskey every second, salmon to 60 countries every year, and beef and lamb to chefs all over the world. Other important exports include textiles, oil, gas and fuel-based equipment and renewable energy equipment and technology. Scotland's top export markets are the U.S., Netherlands, France and Germany. Growing export markets include Australia, China, India, Japan, Russia and the United Arab Emirates.
IMPORTS: It was more difficult to find information on Scotland's imports. It seems the country's major imports include polyester, cows, electronics, paper, and cars. Cows may be imported into the country to produce beef, which is a major export of Scotland.

Exchange Rate
Scotland's currency is the British Pound Sterling, used by all of the U.K., British Crown dependencies and British overseas territories. Currently 1 Pound Sterling is equal to 1.55 USD. The pound sterling has hover around 1.60 USD for the last couple years after it reached almost 2 USD in 2008.

Immigration and Emigration
After the destruction of the clan system in 1746, there was a lot of emigration from Scotland in the 18th century. In the 19th century many Scots immigrated to Canada and the United States. Since the early 2000 more people from the elsewhere in the U.K. have moved to Scotland than Scots moving to elsewhere in the U.K. Scotland also recently switched from having a negative net migration to a positive net migration as indicated by the graph below.

Relations with Other Countries
Scotland is part of the United Kingdom. The U.K. is part of the European Union, the United Nations and the North Atlantic Treaty Organization. They are allied with many European nations, like France, Germany, Italy and Spain. Also, other English speaking countries, like Canada, New Zealand, Australia and the United States. The U.K. is involved in many peace-keeping operations around the world, as well as combat operations in Afghanistan and Iraq.

In Scottish News #2

I read the article "Internet advertising up by 12.5%" in the Scottish magazine called The Scotsman, the article can be found HERE.

This article states that advertising spending on the internet increased by 12.5% in Britain in 2012. It states that this increase is because consumers are spending more time on smartphones and tablets. The total amount of pounds spent on advertising in 2012 was 5.42 billion.

This increase in internet advertising shows how markets can be adaptive to new technologies. These technologies allow them to grow and improve. With internet advertising, relevant ads can reach the consumer while they are surfing the internet. It also shows how the market is adapting to consumers preferences for spending time on smartphones and tablets. Advertisers are able to see where there advertisements will be seen the most and change there advertising mix to incorporate more online types of ads. If it is true that more people are spending time online, than these ads will reach more people.

The higher demand for internet advertisements is likely to increase the price and quantity of these types of ads. Because this is a substitute of other types of advertisements, the demand for these ads is likely to decrease causing the price and quantity of other types of ads to decrease too.

This increase in internet advertising indicates that the U.K. is utilizing new technologies. The markets in the U.K. are adjusting to find faster ways for advertisements to reach people. Business are able to adapt to consumer behavior and create a way to benefit from it. Some problems could arise from this shift. One problem is that with internet advertisements becoming more prevalent, consumers might be more likely to ignore them. Consumers may also become annoyed with these ads. The increased price of internet advertisements, may price some smaller business out of this market. Larger business and companies will benefit from this decrease in competition. Though the increase in internet advertisements may cause some problems to arise, it show that the U.K. has a market that can adapt and change to become more efficient.

Reinventing the Bazaar: Chapter 4

This is a response to chapter four, "Information Wants to be Free," in the book, Reinventing the Bazaar: A Natural History of Markets by John McMillan.

In the reading I found the following quote very interesting:

"The mere existence of choice does not in itself ensure that the market operates competitively. For there to be effective competition, buyers must be able to easily compare the choices... Information is the lifeblood of markets. Knowledge of what is available where, and who wants it is crucial. A market works badly if information does not flow through it."

Consumers being able to choose is a significant factor in defining price. Because a consumer can choose another seller, prices are competitive. In some markets the ability to choose another seller does not create a competitive market. I thought this quote was interesting because it shows how when sellers are able to withhold information from buyers, it is often to the sellers advantage. This is interesting in relation to tourists purchasing items in the Marrakech bazaar in Morocco. The tourists cannot easily find out where the cheapest priced items are and to search extensively for where these items are would be just as costly as buying the item from the first or second seller they encounter. Information about where the cheapest priced goods are located is not available in this market, allowing the sellers to have greater control over the price. The second part of the quote talks about how information and knowledge are so important to a successful market. With freer information, buyers are able to locate the goods and prices that best suit their needs, it is also to the sellers advantage to be located by these consumers. The greater the information available the more competitive and effective a market is.

The author talks quite a bit about transaction costs in this chapter. I understood transaction costs to be the costs associated with purchasing a good. This would not include the actual cost of the good, but things like time it took to compare the good to other goods and assessing the quality of goods. McMillan talks about how on the internet the cost of comparing the prices of the same or similar goods is very easy, making this transaction cost zero. In contrast to this he talks about how the internet makes it more difficult to ensure the quality of goods. The transaction cost of ensuring quality may be higher if a buyer wants to investigate buying from smaller online businesses. Internet consumers often reduce this transaction cost by buying from brands they know and trust to be of good quality.

With perfect information in a marketplace, all people in the marketplace know all the information about everything. But perfect information rarely is completely available in a marketplace, so let's consider the effects of imperfect information. Consumers would be greatly affected by imperfect information. If they are unable to easily compare prices, they will likely end up paying a higher price than necessary. They also are unable to ensure the quality of the goods they purchase, and may not be trusting of sellers. This mistrust is a disadvantage for the seller because buyers will be less willing to purchase goods, particularly from sellers they are unfamiliar with. The seller do have an advantage in that they can produce goods of worse quality than competitors and the buyer has no way of knowing this. They also have more control over the price because consumers have difficulty comparing prices. Though the sellers come out on top in some ways when information is imperfect, overall the market will be less successful, with fewer transactions occurring and many people unable to trust from whom they purchase.

A Fez with a Heart Response

A response to A Fez of the Heart: Travels around Turkey in Search of a Hat, by Jeremy Seal

One of my favorite passages from this reading is about how life changed so quickly in the city of Pomegranate. It talks about Halil, a successful hotel owner and son of a farmer.

"Halil know that there never were, nor will be, such differences in Pomegranate livelihood and lifestyle as existed between him and his father and their respective generations. There is a yawning gulf between their lives that cannot be closed, only recognized."

I found it interesting how quickly life can change for an entire city. Pomegranate was a simpler farming town, and then suddenly became a bustling tourist destination. Halil keeps all his father's tools on display in his hotel as well as pictures and even a pair of his pants. The reading mentions how mens tools became museum pieces before those who used them had died. I feel that this gap may often happen in towns and cities where there is beautiful scenery and interesting culture and tradition. Tourists want to visit to see these things, but eventually the real culture is lost and it is all geared toward pleasing the tourists.

Halil's display of his father's old things is likely good for his business. It gives his hotel a unique glance into the past of the town, which tourists will be eager to see. We also saw an increase in the number of places for tourists to stay; beginning at just twenty-five and growing to now be anywhere between twenty to a hundred thousand. This shows how a market will adapt. The people of Pomegranate realized money could be made in creating lodgings for tourists, making hotels, restaurants and tourist attractions increase. These tourists wanted to see the charming culture of Pomegranate and this was an emphasis the people of Pomegranate pushed.

In Scotland I see this happening as well. Loch Ness is a popular tourist destination in Scotland because of the legend of the Loch Ness Monster. This legend is part of the culture of Scotland, but has now been turned into an object to attract tourists. Another thing that attracts tourists to Scotland are the many castles and ruins. These give insight into the past of Scotland, but have no real use today. They are kept because they are important to the history of Scotland, but they also give Scotland a unique historical aspect that draws tourists. Scottish culture is fairly well known, kilts, bagpipes, haggis, but this is not Scottish culture in its entirety. Those are just little traditions that make Scotland interesting to tourists. Though they do have some real use in Scotland, this use is engulfed in all of Scottish culture today. As tourists pick out their favorite bits of Scottish culture, they are unable to understand the country's culture as a whole.

Country Profile Part Three: Scotland Tourism

Importance of Tourism
The history, culture and scenery of Scotland make the country a popular tourist destination. Tourism in Scotland creates about 200,000 jobs in the service sector. Tourists spend an average of 4 billion pounds per year. Though most tourists are from other parts of the U.K., most common oversea tourists include the U.S., Germany, France, Canada and Australia (in this order).

Tourist Attractions
Scotland has many large, historic cities that are frequented by tourists and contain many exciting attractions and activities. Scotland has many cultural tourist attractions, such as the Highland Games, which have traditions unique to Scotland. Often tourists visit Scotland to discover their Scottish heritage. One of the most well know Scottish tourist attractions is Loch Ness, where many believe the Loch Ness Monster lives. The history of Scotland allows for many great castles and ruins, that also draw tourists.

Here is a list of the top 10 tourist attractions in Scotland: Tourist Attractions
Here is a site helpful for tourists in Scotland: Tourist Site

National Parks and Nature Preserves
Scotland has two National Parks:
Loch Lomond and The Trossachs National Park
Cairngorms National Park

Here is a list of Scotland's Nature Reserves: Nature Reserves

Museums
Some of the biggest museums in Scotland are as follows:
The National Museum of Scotland (Edinburgh)
Gallery of Modern Art (Glasgow)
Riverside Museum (Glasgow)
National War Museum (Edinburgh)
National Museum of Rural Life (Kilbride)
National Museum of Flight (East Lothian)

Country Profile Part Two: Scotland Economics

A Broad Overview of Scotland's Economy
GDP: 216 billion USD
GDP per capita: 43,492 USD
Life Expectancy
75.8 years for males
80.4 years for females
Poverty Rate: 15% (2010/11)
Literacy Rate: 99%
Unemployment Rate: 7.4%
Inflation: 3.5%

Natural Resources
The climate of Scotland is temperate, it is fairly changeable but is rarely extreme. Because of the different topography of Scotland rainfall is highly varied across the country reaching 180in in the western Highlands but only 34in in eastern Scotland. Scotland has significant coal and oil reserves and large deposits of zinc. A lot of the soil is rocky and infertile, but there is some arable land in the central lowlands and flat eastern coastal areas. Another important Scottish resource is livestock, mainly sheep. The rivers of northern Scotland provide significant quantities of hydroelectric power, with most of the U.K.'s hydroelectric power located in Scotland.

Labor
The labor force in Scotland is almost 3 million people. Scotland has universal public education available to all residents. The Scottish educational system emphasizes breadth in a range of subjects in stead of more in depth studies in one area, like in the rest of the U.K. After completing primary and secondary school, students can decide to continue studying at a university. Scotland has 18 institutes of higher education including 15 universities.

Capital
Scotland has a very large fishing industry. Other main industries in Scotland are electronics, textiles, whisky and tourism. Because of the natural reserves of coal and oil, these industries are also fairly successful, but hydroelectric power is on the increase. The Scottish government invests a decent amount of money into the infrastructure of the country. The roadways and railway system are very extensive. Below is a picture of major railways throughout Scotland.

In Scottish News #1

I read an article titled "Farmers warned spring seeds carrying higher levels of disease" published in The Scotsman and located online HERE.

This article explains how the spring barley seed, planted in 2012 and being sown now, likely contains much higher levels of disease than normal. Testing indicates that more than 40% of the current crop could be infected with unprecedented levels of two fungal diseases, fusarium and microdochium. Farmers hoping to sell their barley crops to maltsters for use in brewing beer and distilling whiskey may find buyers unwilling to purchase infected grain. These disease also can cause reduced yield, low weights and reduced seed germination for farmers as well as possibly harming livestock if used in fodder. The end of the article briefly touches upon the proposals for agricultural trailers to undergo an annual road test aimed at reducing accidents. These proposals could negatively effect farmers and may deliver little genuine safety benefit.

The effects of the diseased barley seed could be present in many different markets. The first and most obvious market that will be affected, is the market for barley seed. The article mentions how beer brewers and whiskey distillers may be uninterested in buying Scottish barley seed because of the fungal diseases. If this did occur the demand for barley seed would decrease, causing the price and quantity of barley seed to also decrease. Another effect on the barley seed market could be a decrease in supply because the diseases negatively affect the amount of barley seed harvested. A decrease in supply would increase the price and decrease the quantity of barley seed sold in Scotland. If demand and supply both shifted in this way, the quantity would surely go down but the price could go up, down or stay the same. Other markets that could be affected are the markets for whiskey and beer. If the cost of barley goes up, either due to having to import barley from elsewhere, or because of the decrease in supply of barley, the supply of whiskey and beer could also decrease. This decrease in supply of Scottish beer and whiskey would cause an increase in the price and a decrease in the quantity. The final market I looked at was the market for livestock. If the supply of livestock is negatively effected by the animals getting sick from the diseased barley then the price of livestock will increase and the quantity will decrease.

This situation was caused by the weather in Scotland. Due to the extensive winter and cold conditions, farmers were unable to drill for seeds until later than they usually would. When drilling for barley seeds a fine warm seed be is advised, but farmers experienced cold, wet soil. This created slow emergence, forcing farmers to drill later and high infection levels which could significantly reduce plant counts. There doesn't seem to be a clear resolution to this problem. The fungal diseases are not extremely devastating in themselves, but how wide spread they are is worrisome. Suggesting that farmers test their seeds for disease will help. This will allow farmers to give buyers more information about the barley seeds sold.

Country Profile Part One: Scotland Culture

Popular Sports
The most popular sports in Scotland are football (soccer in U.S.), rugby and golf. Cricket, curling and shinty are games that are popular in Scotland and not well known in the U.S. Scotland has a Men's National Football Team and a Women's National Football Team with fans known as the Tartan Army. Internationally famous athlete, Andy Murray, known for his gold medal win in the 2012 Olympic tennis final, was born in Glasgow, Scotland. My parents and I enjoy watching tennis, specifically Wimbledon, and always cheer on Andy Murray.

The Highland games are and important part of Scottish history and culture. They include some sporting events, as well as music and dancing events. I found the wikipedia page to be interesting and helpful: 
Highland Games

Music
When thinking of music in Scotland, most immediately jump to the bagpipe. The bagpipe is an important historical instrument for the Scottish and is played in Scottish folk music, which has remained a part of Scottish culture to this day. Piping in Scotland is connected to Gaelic singing, stepdance and fiddle.
Today more mainstream styles of music are popular in Scotland, such as rock, pop, and jazz. The Proclaimers are a famous Scottish band, known for their song I'm Gonna Be (500 Miles), a personal favorite of mine and featured below.

Food
Much of Scottish food originated in Scotland, though it has some British, French and other European influences. Game, dairy products, fish, fruit, vegetables are fairly common in Scotland and are featured in most traditional foods. Scottish cuisine focuses on simplicity, using few spices, which were expensive. Some notable traditional Scottish foods include haggis, old Scots brown soup, Solan goose, and calves foot jelly.

I found this site helpful in understanding better understanding Scottish foods:
Scottish Food

Major Religions
Christianity is the most practiced religion in Scotland, with the majority of these Christians belonging to the Church of Scotland. The Church of Scotland, also known as the Kirk, officially formed in 1560. Catholicism is the second largest religion in Scotland, though many Scots are non-religious. Below is a breakdown of the major religions in Scotland:

National Holidays and Traditional Customs
Hogmanay: This is the Scottish celebration of New Years Eve. During this celebration a 'First Footing' custom is observed. The first foot to enter a house in the new year must belong to a male with dark hair. I was considered bad luck if blonds or redheads, and especially women were the first-footers in a house.
St. Andrew's Day: Celebrated on November 30th, this day celebrates St. Andrew, the patron saint of Scotland. This day is an official bank holiday in Scotland.
Beltane: an ancient Gaelic festival celebrated in Scotland, Ireland and the Isle of man. It takes place at the beginning of summer and is still celebrated today by some Scots.

Popular TV Shows and Movies
Scotland's most watched television show today is The Hour, which is a Scottish magazine show. A popular TV show of the past is Francie and Josie, a series revolving around two comedians which aired from 1958 to the 1990s. Some famous Scottish actors include Sean Connery, Robert Carlyle, Tilda Swinton, Ewan McGregor, Gerard Butler, James McAvoy, and Robbie Coltrane. Here is a link to some "Great Scottish Movies."

Online News Sources
BBC News Scotland
Aberdeen's Evening Express
Scotsman
Scots Magazine

Online Forums for Expatriates
http://www.scotland.org/us
http://www.transitionsabroad.com/listings/living/living_abroad/living_in_the_united_kingdom.shtml
http://www.expatexchange.com/scotland/liveinscotland.html

Government
When understanding the Scottish government, confusion often arises when understanding the purpose and duty of the Scottish Parliament versus the U.K. Parliament which governs over the entire U.K. The government of the U.K. legislates over many 'reserved matters,' such as defense. The Scottish Parliament legislates over health, education, law, transport and many other things known as 'devolved matters.' The current first minister of Scotland is Alex Salmond, pictured below. The current Scottish Parliament contains six political parties listed here in order of popularity: Scottish National Party, Labour Party, Conservative and Unionist Party, Liberal Democrats, Scottish Green Party.
Here is a helpful link about the Government of Scotland:
Government of Scotland

Reinventing the Bazaar: Chapter 1

In the first chapter of Reinventing the Bazaar, McMillan explains what he believes are the defining characteristics of a market. He begins by stating that "a market for something exists if there are people who want to buy it and people who want to sell it," continuing with the dictionary definition of a market, "a meeting together of people for the purpose of trade by private purchase and sale" (p 5). This indicates two defining characteristics of a market, the desire to buy and sell an item must be present, and an exchange between two individuals should take place. He then expands on this definition, claiming it is not detailed enough. McMillan believes that a key factor in defining a market is 'decision-making autonomy.' This autonomy is what creates a market transaction. An individual must be allowed to make their own choices in buying or selling a good, even if this autonomy is only the ability to accept or decline a transaction. A quote that struck me was, "No one is in charge of the market - or rather, everyone is in charge" (p. 7). This quote explains how no one person controls the decisions made in a market, everyones autonomy in their decision making combines creating the market. To review, the three main characteristics of a market: The desire of individuals to buy and sell, the existence of a transaction, some level of decision-making autonomy in this transaction.

McMillan touches upon peoples differing view of markets, while some people believe that the invisible hand of the market should be left unchecked, others think a market must be regulated to be successful. Many people believe that a market should be left to set itself, and that very few regulations and control should be imposed on a market as these factors only interfere with a markets inherent accuracy. These people believe that non-market action unhelpful and also may fear that the regulators of the market, likely the government, will become too controlling. This is understandable as the more rules and regulations placed on a market, the less decision-making autonomy the market participants have. As McMillan explained, this autonomy is crucial in the market functioning properly. Others are wary of complete autonomy in a market, believing that the market cannot be trusted to fairly control itself. With complete autonomy, decisions can be made that are not beneficial to the market and exploitation can occur. These people think the government should step in, creating laws and regulations for a market to follow that prevent negative market factors and protect people from becoming victims of a market.

It is clear to me that some regulation is needed in a market. McMillan states that a market will only be successful if "information flows freely through it," and "people can trust each other" (p 10). For these factors to be present in a market, some regulation is required. Rules that limit the ability for buyers and sellers to deceive each other foster trust in a market. Information about products being sold should be given to the buyer and information on similar products should be easily accessible. The government may need to create regulations that monitor the disclosure of information to a customer and the freedom of information. If a buyer knows that government law ensures the quality of goods, more market transactions will take place. Buyers will have more trust in sellers giving them a quality product. Even though this non-market action is needed to assist the market, I am also cautious of excessive government intervention. As a government expands it's control over a market, autonomy is lost. This autonomy is what fosters growth in the market as growth is due to "trial and error, through the market participants' everyday actions" (p 12). Without allowing the participants of a market to experiment and make their own choices, they will not be able to discover what are successful and unsuccessful ways to expand. New ways of business that reduce transaction costs are beneficial to everyone in a market, with excessive regulations on a market, these innovations would not be created.

Modern markets are governed by rules. The rules that allow for the freedom of information in a market and that foster trust are the ones that I believe are the most important because without these rules a market would not be able to move past a certain point. These rules are also crucial because they protect people from making bad decisions and also being victims of dishonest business. Some rules and regulations are necessary to create a successful market.

Why Did Human History Unfold Differently On Different Continents For the Last 13,000 Years?

In Jared Diamond's article, "Why Did Human History Unfold Differently On Different Continents For the Last 13,000 Years?," he examines why societies developed differently on various continents. He attempts to pinpoint the cause of faster developing societies. By doing this he is able to explain why Eurasia was able to conquer the rest of the world and not the other way around. Diamond identifies environmental factors as the cause to the disparity in the development of different regions, noting that biological factors, such as average IQ, are not related to this difference.

Diamond identifies domesticable plants and animals, an east/west land orientation, and the ability to interact with other societies as the most important determinants of a society's success.
Societies with domesticable plants and animals yield more calories per acre allowing for greater population density and movement away from hunter/gatherer society. The existence of surpluses and storage due to agriculture allows for the development of a stratified society with governing elites. Domesticable plants and animals also allow for the accelerated development of technology because it is not necessary for all people to raise their own food so some can devote their time to creating "metallurgy, writing, swords and guns." The domesticable plants and animals also allowed for the spread of germs and disease which wiped out hunter/gatherer societies.

An east/west land orientation allows for the spread of these domesticable plant and animal species because of the same day-lengh and climate. In north/south oriented continents, plants and animals that are domesticated in on region cannot be easily spread to other regions without adaptation. Eurasia being oriented on an east/west axis allowed for the fast spread of domesticated plants and animals. Africa and the Americas are oriented on a north/south axis making the spread of these species difficult.

Diamond also indicates a society's ability to interact and share technologies and developments with other societies allows for faster development. Societies sometimes experience fads where they discontinue beneficial practices or start a non beneficial practice. When these societies are in contact with others that did not experience this fad they are able to redevelop in a positive way. When a society is isolated they do not have other societies to share and gain technologies from, they do not develop as as quickly.

Due to the connectedness and technology of the world today, different societies on different continents are able to interact readily. This allows for technology and new beneficial developments to spread from society to society throughout the world. Because of trade, plants and animals that are only able to grow in certain conditions can be used by many different societies.