Assignment #1

Q#1:

This week, we are going to explore the concepts of the law of one price and the theory of purchasing power parity. In brief, these tell us that in the absence of trade barriers, the same product should cost the same in all countries (the law of one price). However, there are transaction costs and not all products can be traded internationally. These make the law of one price less useful in practice than it is in theory—at least for many products.

The theory of purchasing power parity, on the other hand, does not have the limitations that the law of one price does. Purchasing power parity tells us that the same product should take the same amount of purchasing power to buy, regardless of the country and currency involved. This approach is useful for international comparisons of numerous economic variables.

This week, we are going to use it to look at currency exchange rates again. Think back to the currency you compared to the US dollar earlier in the course. Now we are going to ask the question: is that currency overvalued or undervalued?

That is actually a rather challenging question to answer. But The Economist has provided us with a rather interesting and quick way of reaching a surprisingly accurate answer to that question. The method is the Big Mac Index.

Following are links to an informative video, a more recent article with Big Mac Index values, and an interactive currency comparison tool. The last two are from The Economist.

Currency Valuation with the Big Mac Index

Read the 2014 Big Mac Index article: “The Big Mac Index.”

You will probably also want to use the interactive comparison tool: Global Exchange Rates, To Go

Questions to address

• Is the currency of the country you studied previously overvalued or undervalued relative to the US Dollar?
• What does your finding suggest for the future behavior of your selected currency: Is it likely to appreciate or depreciate? 

Q#2: 

Choose one of the following options for your Post: 

Option #1: Theme 1 – Information

After reading Cooke’s Fake News and Alternative Facts in the Required Learning Materials (Please see attached for article), please do the following: 

1. Provide a comprehensive definition of 1) misinformation and 2) disinformation by paraphrasing and using your own words. (Please see tips on paraphrasing here.)
2. Briefly explain three reasons mis/disinformation spreads online, according to Cooke’s discussions. Can you relate any of these reasons to technological determinism or social constructivism? Explain briefly.
3. Choose one article from the Theme #1: Information section of the Week 5 Discussion Resources and explain some new information it adds to your understanding of how mis/disinformation is legitimized and/or disseminated online and the effects of it. Be sure to point out anything you found that was surprising or particularly interesting.   
4. Use two quotes from any of your resources to support or explain your points. Make sure to provide in-text citations for both quotes in MLA format.  
5. Provide references for all sources in MLA format.    

Option #2: Theme 2 – Social Media 

After reading van Dijck’s chapter, “Engineering Sociality in a Culture of Connectivity,” in the Required Learning Materials (Please see attached for article), please do the following:  

1. Briefly explain how the progression from Web 1.0 to Web 2.0 created the conditions for computers to be used in new ways by both individuals and companies. Is there a role for technological determinism or social constructivism in this transition? Explain briefly.
2. Based on the information in van Dijck’s chapter, identify and explain one possible conflict or issue that can arise from the commodification of users by social media companies.  
3. Choose one article from the Theme #2: Social Media section of the Week 5 Discussion Resources and discuss how it relates to something mentioned in van Dijck’s chapter.   
4. Use two quotes from any of your resources to support or explain your points. Make sure to provide in-text citations for both quotes in MLA format.  
5. Provide references for all sources in MLA format.    

Option #3: Theme 3 – Community

After reading Bakardjieva’s chapter, “Virtual Togetherness,” in the Required Learning Materials, please do the following:  

1. Concisely describe what “virtual togetherness” is, according to the author, by paraphrasing and summarizing in your own words. 
2. Briefly (1-2 sentences) define each of the five forms of virtual togetherness and provide an example of each:  
   1. infosumption 
   2. instrumental
   3. interaction 
   4. exploring ideas & chatting   
   5. community as commitment  
3. Choose one article from the Theme #3: Community section of the Week 5 Discussion Resources and discuss how the community described in the article relates to at least one of the forms of virtual togetherness. Be sure to explain why you chose the form (s) of virtual togetherness you did and point to specific evidence in your chosen article that supports your choice.   
4. Use two quotes from any of your resources to support or explain your points. Make sure to provide in-text citations for both quotes in MLA format.  
5. Provide references for all sources in MLA format.