The Sunday Brew #53
In this brew - In a Picture, Net FDI to China turns negative | Bucket Error & Affect Heuristics | Amazon - Meta Partnership, Moody's Downgrades US Debt and Tesla India Entry Fast-tracked
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two concepts - Bucket Error & Affect Heuristics
Bucket Error
Imagine you're trying to categorize or organize things, and you put them into different buckets or groups. But, since you have just three buckets, you lump together a bunch of things even if they arenโt really supposed to.
A Bucket Error occurs when you misclassify or wrongly assign something to a particular category.
In a broader sense, it's a mental model that highlights the pitfalls of oversimplification and the importance of careful classification. It's a reminder that sometimes things don't neatly fit into predefined categories, and there's room for error or misunderstanding when trying to organize complex information.
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Affect Heuristics
Affect Heuristic is a mental shortcut we often use to make judgments and decisions based on our emotional responses rather than a thorough analysis of the facts.
Here's how it works: When faced with a decision or evaluation, our emotions play a significant role in shaping our perceptions. The affect heuristic involves relying on our immediate emotional reactions to a situation to guide our judgment. This can be efficient in certain scenarios, as emotions can provide quick and automatic responses. However, it can also lead to biases, as our emotions might not always align with objective reality.
For instance, if we have a positive emotional response to a brand, we might be more likely to trust and support it, regardless of the specific details. On the flip side, a negative emotional reaction could lead us to quickly dismiss an idea or option without fully considering its merits.
THREE NEWS FROM THE WEEK
Amazon & Meta Partner for in-app Shopping
Amazon & Meta have partnered to allow Meta platform users to shop for Amazon products directly from Facebook and Instagram without having to leave the apps. Customers can link their Amazon accounts to their Meta accounts and then checkout with their saved Amazon payment information and shipping address.
The partnership is still in the testing phase, but it is expected to be rolled out to all users in the coming months. Read More ยปยปยป
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Moodyโs Downgrades US Government Debt to Negative
Moody's Investors Service downgraded the outlook on the US government debt to negative from stable on November 10. This was the first time that Moody's had downgraded the US outlook in ten years.
The key reasons cited by the Moodyโs for the downgrade are: large fiscal deficit, decline in debt affordability & political polarization.
The downgrade of the US outlook is a significant development, as it could lead to higher borrowing costs for the government and businesses. It could also damage the US's reputation as a safe haven for investors. Read More ยปยปยป
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Indian Government to Fast-track Tesla Approvals
Tesla has been in talks with the Indian government for several years about setting up a manufacturing plant in the country. However, the talks have been stalled due to disagreements over import duties and other issues.
The Indian government has recently made some concessions to Tesla, including reducing import duties on electric vehicles and components. This is seen as a sign that the government is serious about getting Tesla to invest in India.
Now, the Prime Minister's Office has reportedly instructed government departments to expedite approvals for Tesla's proposed investment in India by January 2024. Read More ยปยปยป
The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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