6. Arbitraging
1. Pick a product and review the prices in both countries
2. Are the prices different than the exchange rates?
3. Buy currency in the low priced country
4. Buy the product in the low priced country
5. Move to the high priced country
6. Sell in the high priced country
7.
8. 1.00 Dollar to 51.91 Peso
USD to PHP
$ to ₱
$ 50.00
x
51.91
=
₱ 2,595
₱ 1,973
÷
51.91
=
$ 38.00
10. Cost?
Arbitraging
1. Traded $38 for ₱ 1,973
2. Bought shoes for ₱ 1,973
3. Shipped to U.S.
4. Sold in U.S. for $50
5. Traded $38 for $50
6. Made $12 on $38
7. Made 31 percent profit
8. Repeat
11. 1. Dollar to Won (KRW) rate is 1 to 1,176
2. Cell Phone in U.S. is $600
3. Same Cell Phone in South Korea is 600,000
4. Cost to ship is $5
5. What should you do and how much will you
make? Dollars and percent?
13. 1997 2020 $40,000
Increased by
167%
You get 0.375
of a degree
$148
Decreased by 99.0%
You get 100 TVs
Large-Screen TV
$15,000
College Degree
$15,000
In the past 23
years a college
degree has
become 267 times
more expensive
relative to TVs
100 ÷ .375 = 267
14. 1997
2020
Large-Screen TV
1997 2020
Nominal Price $15,000 $148
Average Hourly
Income
$12.50 $24.60
Time Price
in Hours
1,200 6
Time Price
Declined by 99.5%
Resource Abundance Multiplier: 200
Percentage Change in Personal
Resource Abundance: 19,900 percent
31. The reason there will be no change is because
the people who stand to lose from change
have all the power. And the people who stand
to gain from change have none of the power.
-Machiavelli
43. "Happiness is the object and
design of our existence; and will
be the end thereof, if we pursue
the path that leads to it; and this
path is virtue, uprightness,
faithfulness, holiness, and keeping
all the commandments of God.
"In obedience there is joy and
peace . . . and as God has
designed our happiness . . . , He
never has — He never will . . .
give a commandment to His
people that is not calculated in
its nature to promote that
happiness which He has
designed."
44. For the earth is full, and there is enough and
to spare; yea, I prepared all things, and have
given unto the children of men to be agents
unto themselves.
- D&C 104:17
46. Minor - 5 classes
Concentration - 6 classes
Economics
47. Minor Concentration
ECON 200 Microeconomics
ECON 201 Macroeconomics
ECON 350 Development Economics
ECON 353 Money, Banking, and Business
ECON 360 International Economics
Electives - Pick 1 from 4 options
