Saturday, May 25, 2013
EGT Consulting Summary
Scotland seems a logical place to start a new business. Start up procedures are fairly low, there is little corruption and the overall business climate is good. There is also the necessary infrastructure in place for shipping of vehicles to and within Scotland. With ports surrounding the country, shipping vehicles from any direction would be possible. Scotland has a per capita GDP of $41,189 and poverty has declined in the past 10 years. The population of Scotland is 5.2 million. The terrain is fairly mountainous and the climate is quite cool. The most common form of travel is by car. Combining these factors, it seems the scooter would not be very successful due to multiple factors including the weather and terrain. The limousine may not be successful as the population of Scotland is fairly low compared to other countries. The car, being the most common for of travel in Scotland, would likely be the most successful vehicle in this new market.
Aberdeen City Analysis
When looking at Scotland as a country, I think that Aberdeen would be identified as a regional city in the hierarchy of Central Places. Regional metropolis in Scotland are the country's capital of Edinburgh, and Glasgow, the city with the largest population in Scotland. Small cities in Scotland include Dundee and Inverness. Towns surrounding Aberdeen are Peterhead and Montrose. As Scotland is a country within a country, I think that though Glasgow could be considered a National Metropolis, most National Metropolis are located in England where the extremely large populations live, such as London.
Aberdeen, being a regional city, has many things that smaller cities do not. Aberdeen has its own airport, as well as two major ports. Accompanied with Aberdeen's train and road infrastructure, transportation to anywhere within and around the city is not difficult. Being a big city, some of the land is set aside as preserves, this includes land near the coast where one can find beaches (pictured below). There are two major universities located within the city of Aberdeen, and various secondary schools can be found in the city, including schools with religious affiliation. There are nine different hospitals and medical centers located in the city of Aberdeen.
Aberdeen, being a regional city, has many things that smaller cities do not. Aberdeen has its own airport, as well as two major ports. Accompanied with Aberdeen's train and road infrastructure, transportation to anywhere within and around the city is not difficult. Being a big city, some of the land is set aside as preserves, this includes land near the coast where one can find beaches (pictured below). There are two major universities located within the city of Aberdeen, and various secondary schools can be found in the city, including schools with religious affiliation. There are nine different hospitals and medical centers located in the city of Aberdeen.
Wednesday, May 22, 2013
In Scottish News #4
I read an article titled "Nathan Goode: Trams just start for sustainable city," found in the Scottish magazine The Scotsman, it can be found HERE.
This article discusses the new sustainable tram system just completed in Edinburgh, Scotland. Though residents had seen the cost of this project increase and the completion date moved back repeatedly, the tramway project is finally complete. Edinburgh is Scotland's capital city and, until now, has not delivered European standards of infrastructure. There is currently only one line linking Edinburgh Airport with York Place; expansion of the tramway system is imperative. Edinburgh looks toward a future that is both business friendly and sustainable with this tram system. The author believes that Edinburgh has an opportunity to become a world leader in sustainability, but for this to be achieved, everyone must support a vision for a sustainable and effective transport infrastructure.
Some economic benefits of the tram system are discussed in the article. One of these benefits is to the communities situate close to the line as these areas could become "investment nodes," spurred by the creation of a 21st-century transport system. I think this is similar to the cities that benefited from the creation of the shipping container. Cities that were ideal to set up ports made for the new shipping containers benefited as more business and goods were passed through the city. On a smaller scale, communities along the tram line will likely benefit from increased passenger and business traffic passing through their area. The article also mentioned how residents will benefit. Residents who suffered the effects of construction work will likely see their property prices and transport options increase. The council in Edinburgh will also be able to have more flexibility in regenerating areas forgotten and neglected through tram line creation. Another beneficial effect not mentioned in the article is the benefit to the environment. The tram is an efficient from of public transportation that reduces the overall effect of Edinburgh on the environment. As Edinburgh creates more tram lines they will connect more areas of the city. This will allow for people to get from one area to another easily and cheaply, fostering business and market growth.
Though the tram system seems largely beneficial to Edinburgh, there are some problems that could arise. The cost and time used on the first tram line were much larger than originally expected. The city may not have the time or money to create the tram system necessary to benefit the entire city. To create an fully inclusive infrastructure system, more lines are necessary. As more lines are created, the positive effect on the environment will increase, and more residents and communities will benefit from the system. If Edinburgh is able to create more tram lines, the future of the city's infrastructure is bright.
This article discusses the new sustainable tram system just completed in Edinburgh, Scotland. Though residents had seen the cost of this project increase and the completion date moved back repeatedly, the tramway project is finally complete. Edinburgh is Scotland's capital city and, until now, has not delivered European standards of infrastructure. There is currently only one line linking Edinburgh Airport with York Place; expansion of the tramway system is imperative. Edinburgh looks toward a future that is both business friendly and sustainable with this tram system. The author believes that Edinburgh has an opportunity to become a world leader in sustainability, but for this to be achieved, everyone must support a vision for a sustainable and effective transport infrastructure.
Some economic benefits of the tram system are discussed in the article. One of these benefits is to the communities situate close to the line as these areas could become "investment nodes," spurred by the creation of a 21st-century transport system. I think this is similar to the cities that benefited from the creation of the shipping container. Cities that were ideal to set up ports made for the new shipping containers benefited as more business and goods were passed through the city. On a smaller scale, communities along the tram line will likely benefit from increased passenger and business traffic passing through their area. The article also mentioned how residents will benefit. Residents who suffered the effects of construction work will likely see their property prices and transport options increase. The council in Edinburgh will also be able to have more flexibility in regenerating areas forgotten and neglected through tram line creation. Another beneficial effect not mentioned in the article is the benefit to the environment. The tram is an efficient from of public transportation that reduces the overall effect of Edinburgh on the environment. As Edinburgh creates more tram lines they will connect more areas of the city. This will allow for people to get from one area to another easily and cheaply, fostering business and market growth.
Though the tram system seems largely beneficial to Edinburgh, there are some problems that could arise. The cost and time used on the first tram line were much larger than originally expected. The city may not have the time or money to create the tram system necessary to benefit the entire city. To create an fully inclusive infrastructure system, more lines are necessary. As more lines are created, the positive effect on the environment will increase, and more residents and communities will benefit from the system. If Edinburgh is able to create more tram lines, the future of the city's infrastructure is bright.
Sunday, May 12, 2013
The World the Box Made -- Response
The following entry is a response to chapter 1, "The World the Box Made," in the book The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson.
I found this passage from the article interesting:
The author of the book mentioned a few times that some parties were not happy with the containerization of shipping and transportation. This development made markets that had previously been dominated by local companies, available to international companies. This passage shows that even though some companies may have been unhappy with this change, they were forced to accept it. If companies chose not to expand their trade internationally they were at a disadvantage to those who did. Not only would more goods be in the market, making it more competitive, but they would not be taking advantages of international markets where they could also sell their goods. I think it is interesting that as innovation advances a market, some people are not happy with this because it is not beneficial to them. It is also interesting that even though these people do not agree with the change, they are forced to engage in the advance to remain competitive.
Another passage I found interesting was the following:
I liked this excerpt from the chapter because it emphasizes the importance of innovation. We are reaching a point where increases in capital, land and labor do not fluctuate significantly and I think innovation drives the improvement of markets. Innovation helps improve the way that these resources are used and this makes them more effective. The definition of economics is defined as the allocation of the world's scarce resources. Capital, land, and labor are these resources and innovation is a way that one can allocate these resources more effectively. I found it interesting that sometimes a market will not see the benefits of innovation until a while after it was created. I think this relates to those who did not want the containerization of transportation to take place because it would stifle their local market advantage. It is also interesting how though the innovation is available, it may not be put into effect until someone figures out a way to make it practical.
The author of this book believes that the development of the shipping container contributed greatly to globalization. He believes that the shipping container is often overlooked with trains, ships, airplanes and trucks often emphasized in the transportation industry. I think the author looks at the shipping container as the tool that made ships, trains and trucks able to be integral part of the transportation and shipping. I agree with this, because the shipping container allows for goods to be transferred from all of these different types of transportation without extensive labor and fairly cheaply. I think that the shipping container was a key component in making the cost of transportation of goods much lower. This decrease in the cost of transport allowed for increased globalization. I think that Levinson describes this process well in the following quote:
One can see from this quote that as transport costs decrease, globalization increases. I think the shipping container contributed greatly to the decrease in transport costs, thus affecting globalization.
With every change, there are winners and there are losers. With the development of the shipping container, many people benefited while others did not. There were many that lost out when the shipping container came around. These people included the enormous amount workers who made there living loading and unloading ships. Also, merchant mariners who shipped out to see the world now only got to stay a few hours in port while their ship was unloaded and loaded. Workers in trade unions also did not benefit; Before the container they could negotiate continuous improvement in water and benefits, but with the container, employers could threaten to export labor because it was cheaper elsewhere. This is a way in which employers were winners as they now had much more bargaining power over workers. The final group of people that found the switch to shipping containers disadvantageous was the customs inspectors and security officials. These officials could not check all the containers to make sure what was on the manifest was accurate, making it easy to smuggle things in and out of the country. While there were losers, this innovation in the transportation market also created many winners. Importers and exporters could transport things to other countries much more easily. Manufacturers were also able to decrease their inventories because items were shipped out much faster. Consumers were also a winner at this time. Consumers had many more choices. Due to the inexpensive imported consumer goods, the standard of living increased around the world as consumers could by cheaper things more specified to their needs.
Finally, I'd like to discuss cities and towns that gained and lost because of the shipping container. Maritime commerce cities did not benefit from this change. These cities were found unnecessary or unsuited for container trade and their population rapidly decreased. Winners included harbor towns that could become world ports if the invested in accommodating container trade. New ports were made in countries that didn't have ports before. Also small towns could sell land to manufacturers for cheaper than in cities, and without the high cost of transportation holding them back, manufacturers could now purchase this land. It is evident that the development of the shipping container brought about many changes in the transportation market. Some people found this change to their advantage and some didn't, but it has change the cost of transportation forever.
I found this passage from the article interesting:
"This new economic geography allowed firms whose ambitions had been purely domestic to become international companies, exporting their products almost as effortlessly as selling them nearby. If they did, though, they soon discovered that cheaper shipping benefited manufacturers in Thailand or Italy just as much. Those who had no wish to go international, who sought only to serve their local clientele, learned that they had no choice: like it or not, they were competing globally because the global market was coming to them... In 1956, the world was full of small manufacturers selling locally; by the end of the twentieth century, purely local markets for goods of any sort were few and far between."
The author of the book mentioned a few times that some parties were not happy with the containerization of shipping and transportation. This development made markets that had previously been dominated by local companies, available to international companies. This passage shows that even though some companies may have been unhappy with this change, they were forced to accept it. If companies chose not to expand their trade internationally they were at a disadvantage to those who did. Not only would more goods be in the market, making it more competitive, but they would not be taking advantages of international markets where they could also sell their goods. I think it is interesting that as innovation advances a market, some people are not happy with this because it is not beneficial to them. It is also interesting that even though these people do not agree with the change, they are forced to engage in the advance to remain competitive.
Another passage I found interesting was the following:
"The importance of innovation is at the center of a second, and rapidly growing, body of research. Capital, labor, and land, that basic factors of production, have lost much of their fascination for those looking to understand why economies grow and prosper. The key question asked today is no longer how much capital and labor an economy can amass, but how innovation helps employ those resources more effectively to produce more goods and services. This line of research makes clear that new technology, by itself, has little economic benefit. As economist Nathan Rosenberg observed, 'innovations in their early stages are usually exceedingly ill-adapted to the wide range of more specialized uses to which they are eventually put." Resistance to new methods can impede their adaption... The economic benefits arise not from the innovation itself, but from the entrepreneurs who eventually discover ways to put innovations to practical use--and most critically...from the organizational changes through which businesses reshape themselves to take advantage of the new technology."
I liked this excerpt from the chapter because it emphasizes the importance of innovation. We are reaching a point where increases in capital, land and labor do not fluctuate significantly and I think innovation drives the improvement of markets. Innovation helps improve the way that these resources are used and this makes them more effective. The definition of economics is defined as the allocation of the world's scarce resources. Capital, land, and labor are these resources and innovation is a way that one can allocate these resources more effectively. I found it interesting that sometimes a market will not see the benefits of innovation until a while after it was created. I think this relates to those who did not want the containerization of transportation to take place because it would stifle their local market advantage. It is also interesting how though the innovation is available, it may not be put into effect until someone figures out a way to make it practical.
The author of this book believes that the development of the shipping container contributed greatly to globalization. He believes that the shipping container is often overlooked with trains, ships, airplanes and trucks often emphasized in the transportation industry. I think the author looks at the shipping container as the tool that made ships, trains and trucks able to be integral part of the transportation and shipping. I agree with this, because the shipping container allows for goods to be transferred from all of these different types of transportation without extensive labor and fairly cheaply. I think that the shipping container was a key component in making the cost of transportation of goods much lower. This decrease in the cost of transport allowed for increased globalization. I think that Levinson describes this process well in the following quote:
"When transport costs are high, manufacturers' main concern is to locate near their customers, even if this requires undesirably small plants of high operating costs. As transportation costs decline relative to other costs, manufacturers can relocate first domestically, and then internationally, to reduce other costs, which come to loom larger. Globalization, the diffusion of economic activity without regard fro national boundaries, is the logical end point of this process. As transport costs fall to extremely low levels, producers move from high-wage to low-wage countries, eventually causing wage levels in all countries to converge."
One can see from this quote that as transport costs decrease, globalization increases. I think the shipping container contributed greatly to the decrease in transport costs, thus affecting globalization.
With every change, there are winners and there are losers. With the development of the shipping container, many people benefited while others did not. There were many that lost out when the shipping container came around. These people included the enormous amount workers who made there living loading and unloading ships. Also, merchant mariners who shipped out to see the world now only got to stay a few hours in port while their ship was unloaded and loaded. Workers in trade unions also did not benefit; Before the container they could negotiate continuous improvement in water and benefits, but with the container, employers could threaten to export labor because it was cheaper elsewhere. This is a way in which employers were winners as they now had much more bargaining power over workers. The final group of people that found the switch to shipping containers disadvantageous was the customs inspectors and security officials. These officials could not check all the containers to make sure what was on the manifest was accurate, making it easy to smuggle things in and out of the country. While there were losers, this innovation in the transportation market also created many winners. Importers and exporters could transport things to other countries much more easily. Manufacturers were also able to decrease their inventories because items were shipped out much faster. Consumers were also a winner at this time. Consumers had many more choices. Due to the inexpensive imported consumer goods, the standard of living increased around the world as consumers could by cheaper things more specified to their needs.
Finally, I'd like to discuss cities and towns that gained and lost because of the shipping container. Maritime commerce cities did not benefit from this change. These cities were found unnecessary or unsuited for container trade and their population rapidly decreased. Winners included harbor towns that could become world ports if the invested in accommodating container trade. New ports were made in countries that didn't have ports before. Also small towns could sell land to manufacturers for cheaper than in cities, and without the high cost of transportation holding them back, manufacturers could now purchase this land. It is evident that the development of the shipping container brought about many changes in the transportation market. Some people found this change to their advantage and some didn't, but it has change the cost of transportation forever.
Wednesday, May 8, 2013
In Scottish News #3
I read an article from a popular Scottish magazine titled The Scotsman. The article is called "14th year of growth for Scots oil services exports" and can be found HERE.
This article talks about the oil and gas sector in Scotland. There have been 14 years of growth in a row in this industry. The total exports of oil and gas in Scotland equal 8.2 billion pounds. Offshore equipment, construction, and drilling account for almost half of the sales in this sector. The U.S. is the largest importer of Scottish oil and gas making up 2.6 billion pounds of the 8.2 billion. Growth in the Middle East and Africa markets is evident. Fergus Ewing said, "Scotland has established a global reputation within the oil and gas sector... the value of this activity to the economy and exchequer is substantial." The industry supports around 200,000 jobs in Scotland and there are up to 24 billion barrels of oil still to be recovered in the North Sea. David Rennie said, "Latest figure show that our expertise in oil and gas is increasing in demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland... We'll continue to work closely with companies across the oil and gas supply chain to help identify new opportunities for growth at a global level, particularly in our priority markets such as West Africa, the Middle East, Australia, and Brazil."
This article is relevant to the equation for GDP. Gross Domestic Product includes consumption, investment, government spending and net exports (GDP = C + I + G + NX). The exports of oil and gas that have been increasing over the last 14 years also increase net exports. The total amount of oil and gas exported in 2011/12 were 8.2 billion pounds. This is a significant number as the total GDP in Scotland is almost 140 billion pounds. If the oil and gas industry were not as strong as they are now, Scotland could potentially have a 8 billion pound difference in GDP. The U.S. is one of the main importers of Scotland's oil and gas. This means that the net exports for GDP in the U.S. has 2.6 billion pounds of imports from Scotland in this sector, lowering net exports. The oil and gas industry also supports around 200,000 jobs. The employees who earn wages from these jobs us part of these wages to consume. As consumption is part of GDP, this also affects GDP in a positive way for Scotland. The oil and gas industry in Scotland seems to be growing. This will continue to increase GDP by increasing net exports, as well as consumption as more people are needed to work in this sector.
The high levels of oil and gas exports seem to be a very beneficial thing for Scotland. It increases GDP through consumption and net exports. One negative thing about the growing oil and gas industry is that it is not sustainable in the long term. As oil and gas are not renewable resources, eventually they will all be gone. If Scotland depends to heavily on the oil and gas sector, in the future they will be negatively affected when these resources run out. Scotland should look at more environmentally friendly ways of producing energy. From what I have read about Scotland they seem to be looking a lot into new ways of producing energy including wind turbines to generate power. If Scotland can shift to becoming a leader in producing sustainable energy they will find themselves in a more advantages position in the future when fossil fuels are scarce and new energy is highly demanded.
This article talks about the oil and gas sector in Scotland. There have been 14 years of growth in a row in this industry. The total exports of oil and gas in Scotland equal 8.2 billion pounds. Offshore equipment, construction, and drilling account for almost half of the sales in this sector. The U.S. is the largest importer of Scottish oil and gas making up 2.6 billion pounds of the 8.2 billion. Growth in the Middle East and Africa markets is evident. Fergus Ewing said, "Scotland has established a global reputation within the oil and gas sector... the value of this activity to the economy and exchequer is substantial." The industry supports around 200,000 jobs in Scotland and there are up to 24 billion barrels of oil still to be recovered in the North Sea. David Rennie said, "Latest figure show that our expertise in oil and gas is increasing in demand across the globe, and clearly demonstrate the growing importance international markets have to play in the long-term future of the industry in Scotland... We'll continue to work closely with companies across the oil and gas supply chain to help identify new opportunities for growth at a global level, particularly in our priority markets such as West Africa, the Middle East, Australia, and Brazil."
This article is relevant to the equation for GDP. Gross Domestic Product includes consumption, investment, government spending and net exports (GDP = C + I + G + NX). The exports of oil and gas that have been increasing over the last 14 years also increase net exports. The total amount of oil and gas exported in 2011/12 were 8.2 billion pounds. This is a significant number as the total GDP in Scotland is almost 140 billion pounds. If the oil and gas industry were not as strong as they are now, Scotland could potentially have a 8 billion pound difference in GDP. The U.S. is one of the main importers of Scotland's oil and gas. This means that the net exports for GDP in the U.S. has 2.6 billion pounds of imports from Scotland in this sector, lowering net exports. The oil and gas industry also supports around 200,000 jobs. The employees who earn wages from these jobs us part of these wages to consume. As consumption is part of GDP, this also affects GDP in a positive way for Scotland. The oil and gas industry in Scotland seems to be growing. This will continue to increase GDP by increasing net exports, as well as consumption as more people are needed to work in this sector.
The high levels of oil and gas exports seem to be a very beneficial thing for Scotland. It increases GDP through consumption and net exports. One negative thing about the growing oil and gas industry is that it is not sustainable in the long term. As oil and gas are not renewable resources, eventually they will all be gone. If Scotland depends to heavily on the oil and gas sector, in the future they will be negatively affected when these resources run out. Scotland should look at more environmentally friendly ways of producing energy. From what I have read about Scotland they seem to be looking a lot into new ways of producing energy including wind turbines to generate power. If Scotland can shift to becoming a leader in producing sustainable energy they will find themselves in a more advantages position in the future when fossil fuels are scarce and new energy is highly demanded.
Monday, May 6, 2013
Country Profile Part Five: Scotland Transportation
Water Transportation
Because Scotland is made up of many islands, travel by water is very important to the country. There are many ferry companies that connect the mainland and the many islands of Scotland. Major seaports in Scotland are located in Aberdeen, Edinburgh, Cairnryan, Caithness, Gleneig, Gourock, Kilchoan, Mallaig, Oban, Scrabster, Troon and Ullapool.
Land Transportation
Scotland's rail network consists of 350 railroad stations with 2776 kilometers of track. More than 78.3 million passenger journeys are made on Scotland's railway network each year. More travelers in Scotland are turning to train travel due to the increases in gas prices and the congested roadways. Freight trains are used often in Scotland for the transportation of goods as it produces only 10% of the emission produced by road based transport, in addition to being safe and competitive. Below is a map of the main railroad routes in Scotland.
Scotland's road network is highly developed. There are six main motorways in the country with three main trunk roads connecting the motorways to other parts of Scotland. Below is an image of the road network in Scotland showing the motorways in blue and the trunk roads in green.
Air Transportation
Scotland has four international airports. The Edinburgh Airport is Scotland's busiest airport, it is beginning to service longer flights. The Glasgow International Airport, Aberdeen Airport, and Glasgow Prestwick International Airport are Scotland's three other international airports. Combined the four airports serve 107 international destinations in Europe, Asia, Africa and North America.
There are ten small airports that service the Highlands, Orkney, Shetland and the Western Isles, mostly used for short flights and operated by Highlands and Islands Airports Limited.
Below is an image of all the airports in Scotland. The international airports are shown in red.
Because Scotland is made up of many islands, travel by water is very important to the country. There are many ferry companies that connect the mainland and the many islands of Scotland. Major seaports in Scotland are located in Aberdeen, Edinburgh, Cairnryan, Caithness, Gleneig, Gourock, Kilchoan, Mallaig, Oban, Scrabster, Troon and Ullapool.
Land Transportation
Scotland's rail network consists of 350 railroad stations with 2776 kilometers of track. More than 78.3 million passenger journeys are made on Scotland's railway network each year. More travelers in Scotland are turning to train travel due to the increases in gas prices and the congested roadways. Freight trains are used often in Scotland for the transportation of goods as it produces only 10% of the emission produced by road based transport, in addition to being safe and competitive. Below is a map of the main railroad routes in Scotland.
Scotland's road network is highly developed. There are six main motorways in the country with three main trunk roads connecting the motorways to other parts of Scotland. Below is an image of the road network in Scotland showing the motorways in blue and the trunk roads in green.
Air Transportation
Scotland has four international airports. The Edinburgh Airport is Scotland's busiest airport, it is beginning to service longer flights. The Glasgow International Airport, Aberdeen Airport, and Glasgow Prestwick International Airport are Scotland's three other international airports. Combined the four airports serve 107 international destinations in Europe, Asia, Africa and North America.
There are ten small airports that service the Highlands, Orkney, Shetland and the Western Isles, mostly used for short flights and operated by Highlands and Islands Airports Limited.
Below is an image of all the airports in Scotland. The international airports are shown in red.
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