Question

The goal of this blog is investigative and tries to measure your participation in the global economy by external- and self-reflection. First, consider the current news, popular press, economic journals, and other sources for evidence about how the global economy affects you or for information that you can use as a comparison for your own experience. For example, if you are an immigrant you may see a study that of the 42.8 million U.S. immigrants, the average per-immigrant remit is $2,800 according to the World Bank (2013). Please find at least one fact in two different areas of your life, cite the source, and discuss its importance in your life. The five areas of life are listed below. Choose two to write about. 5 Areas of life to consider: Immigration Status Are you a first or second generation immigrant? Do you live in a community with large immigrant ties? What fraction of your family income, if any, do you remit to family in your origin country? Personal Consumption Patterns Are there products that you regularly consume that are often imported? What fraction of goods that you usually consume are imported? Personal Financial Plan What percentage of your total financial assets are invested abroad? In what regions/countries are you most exposed? Work Related Where is the location of customers who you sell your product to? What percentage of your profit comes from foreign sales? Supply chain question: what fraction of your product uses inputs from outside the United States? Personal Wild Card Surprise yourself with some dimension of your life that connects to the global economy. Second, reflect on an action item in your life, a decision you will be making in the next two years that you know has economic implications for persons who live in other countries. Please reflect on how your decision might affect the incentives or opportunity costs of those persons, or have unintended consequences for them. For example, if you plan to start sourcing your own food locally, reflect on the effect that might have on farmers relying on exporting to the U.S. market. Third, reflect on an action you might take in the next two years to make a positive contribution to the lives of others in another country. Please reflect on the opportunity costs of that decision for yourself, its effect on the incentives of the people whose lives you hope to impact, and any unintended consequences for you, your family, or those you hope to help. For example, if you plan to give donation to a microfinance organization for family holiday gifts this year, reflect on the effect on you, your family, and the lives of recipients.

Answer 1

Five areas of life to consider:

Immigration status

Personal Consumption patterns

Personal financial plan

Work related

Personal Wild card

I have chosen the below mentioned two areas of life ;

Immigration status : I am a first generation immigrant as I am the first person in the family who has come and settled in US from the past 6 years. I live in a community where many Indians reside together. 10% of my family income is being remitted to the family in my origin country to take care of their health and routine activites.

Personal consumption patterns : Dairy products are largely being imported in US. 45% of my daily food consumption is generally being imported by US.

I am planning to source the dairy products locally in US. As a result the major exporting country of dairy products like India will have a setback as the source of foreign exchange earning is eliminated from them. Especially the dairy farmers in India will have reduction in the income due to a setback of their major client, in US who has now started procuring locally.

I am planning to give donation to a country like India for infrastructure development and promotion of trade. As a result of such decision, the disposable income left with me would be less as major portion would go for the donation purpose. For family, they need to cut down certain level of expenditure, in order to cover up with the charity extended to the poor family . On the other hand, this would improve living standards of the population who would recieve the charity and thus the entire economy gets benefitted. This charity would improve the relations betwen India and US.