Emerging Markets and Global Finance Overview

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Questions and Answers

What was a significant consequence of the fabric restrictions during World War II?

Increase in home-based sewing operations

Growth of standardized production for clothing (correct)

Rise in the popularity of haute couture

Decrease in the number of garment factories

How did the practice of using 'sweaters' in the 1800s influence modern clothing production?

It led to the outsourcing of labor for low wages (correct)

It promoted the establishment of large factories

It increased the demand for handcrafted garments

It abolished home-based clothing production

What was the primary reason fashion trends accelerated in the 1960s?

Increased prices of high-end fashion

Lack of interest in clothing by young consumers

Decline in the quality of fabric materials

Rejection of traditional sartorial styles by youth (correct)

Which company is recognized as the longest running fast fashion retailer.

H&M Signup and view all the answers

What is a shared issue associated with the Triangle Shirtwaist Factory and Tazreen Fashion Factory?

Tragic fires highlighting unsafe working conditions Signup and view all the answers

What was a driving factor for companies outsourcing labor to developing countries?

Cost-cutting measures and saving money Signup and view all the answers

What term did the New York Times use to describe Zara’s expedited fashion model?

Fast fashion Signup and view all the answers

What motivated the founder of H&M to open his store?

Observation of U.S. high-volume retail establishments Signup and view all the answers

What is the main factor that determines the value and processability of petroleum?

The molecular weight of its hydrocarbons Signup and view all the answers

Which category of petroleum companies focuses on the extraction of raw materials?

Upstream companies Signup and view all the answers

What is one of the pros of using petroleum as an energy source?

It has a high power ratio Signup and view all the answers

How are petroleum reserves defined in geological terms?

The amount that can be extracted and refined Signup and view all the answers

What percentage of the US economy was estimated to derive from knowledge-based activities in 1985?

40% Signup and view all the answers

What process is used by geologists and engineers to research geographical structures that hold petroleum?

Seismic reflection Signup and view all the answers

Which of the following best describes the quinary sector?

Involves top-level decision making Signup and view all the answers

Which type of drilling is specifically conducted to find new oil reserves?

Exploratory drilling Signup and view all the answers

What is one of the environmental concerns associated with petroleum extraction?

Extraction can be harmful to the environment Signup and view all the answers

Which professions are considered part of the quaternary sector?

Consultants and researchers Signup and view all the answers

In the petroleum industry, what is the role of midstream companies?

To store and transport oil and refined products Signup and view all the answers

How much of the Australian economy was estimated to be made up of quaternary and quinary sectors in 2015?

59% Signup and view all the answers

What is a primary challenge in managing supply chain disruptions according to the content?

Implementing new technology without training Signup and view all the answers

Which of the following is NOT a characteristic of the quaternary sector?

Focuses on manual labor Signup and view all the answers

What term is commonly used to refer to high-level professionals in the quinary sector?

Gold collar professionals Signup and view all the answers

Which of the following activities is traditionally part of the service sector?

Transportation services Signup and view all the answers

What characterizes the employment structure in the healthcare industry compared to the steel industry?

Healthcare jobs are often part-time and non-union. Signup and view all the answers

What type of economy is reflected by the precarious jobs in healthcare?

Surplus economy Signup and view all the answers

How did Pittsburgh's economy change over time?

It grew as a hub for service sector industries. Signup and view all the answers

What is a notable feature of service-dominated economies regarding pay distribution?

They often exhibit a U-shaped pay distribution. Signup and view all the answers

What percentage of the cotton used in France accounted for the total cited?

90% Signup and view all the answers

What was a significant consequence of the U.S. Civil War on the global cotton market?

England became reliant on cotton from India and the Middle East Signup and view all the answers

In the 1980s, what was a significant economic trend in the global cities of New York, London, and Tokyo?

Growth of advanced services like law and finance. Signup and view all the answers

What system replaced slavery in the South after the Civil War?

Sharecropping Signup and view all the answers

What role did technology play in the changes observed in global cities during the 1980s?

It improved communication and complexity of the world economy. Signup and view all the answers

What tragic event occurred at the Triangle Shirtwaist Factory in New York?

A fire led to the death of 146 workers Signup and view all the answers

What was a direct result of the growth of multinational corporations in the 1980s?

Centralized and specialized workers became necessary. Signup and view all the answers

What prompted some sympathy for the South in England during the Civil War?

Famine in India due to cotton production demands Signup and view all the answers

What other low-wage jobs were needed alongside expert knowledge workers in global cities?

Service jobs such as cleaning and child care. Signup and view all the answers

Why did the owners of the Triangle Shirtwaist Factory padlock the doors?

To prevent theft and unauthorized breaks Signup and view all the answers

What ultimately contributed to the global reach of the cotton industry after the Civil War?

Increased diversity of cotton sources worldwide Signup and view all the answers

How did the Civil War affect relations between the United States and Canada?

Friction developed between the countries Signup and view all the answers

What was the primary reason Standard Oil was forced to break up at the beginning of the 20th century?

It was declared a monopoly. Signup and view all the answers

How did Henry Ford's Model T affect car production?

It enabled mass production through assembly lines. Signup and view all the answers

Which region became increasingly significant for oil exploration due to the rise in gasoline markets?

Oklahoma Signup and view all the answers

What societal change resulted from the widespread availability of automobiles?

More suburban development. Signup and view all the answers

In addition to land exploration, what was a major consequence of gasoline becoming crucial in warfare?

Access to oil became a strategic resource. Signup and view all the answers

What effect did the internal combustion engine have on the oil industry?

It increased market demand for gasoline. Signup and view all the answers

What infrastructure was necessary to accommodate the surge in car ownership?

Development of gas station networks. Signup and view all the answers

Which of the following was a consequence of the Standard Oil monopoly on the oil industry?

There was little competition in the oil sector. Signup and view all the answers

Study Notes

Big Emerging-Market Economies

Borrowing in local currency is better in times of crisis for big emerging-market economies
This reduces currency devaluation risk, as the lender bears some of the risk

Financial Support for South Africa

The US, UK, and EU agreed to financially support South Africa's ailing power utility, Eskom
This is both an energy transition strategy and a way to alleviate the pressure on South Africa's government account from Eskom's debts

Wall Street Consensus

Investment bankers, fund managers, and borrowers maintain the dollar-based global financial network
In major crises, this system becomes an overt public-private partnership secured by liquidity swap lines from the Fed

Strong US Economy

A strong US economy supports global capital accumulation and the prosperity of American capital
It requires a tighter stance from US monetary policy to control inflation

Textile Industry

The cotton industry prioritizes low costs.
T-shirts are a common example of cotton's history and are inexpensive; ethics associated with their production are often discussed.
Cotton has been used in South and Central America since 5000 B.C.E.
Cotton was widely used beginning in the Indus River valley by 3000 B.C.E.

Cotton Spread to Europe

Herodotus described cotton as a wool superior in quality and beauty.
Alexander the Great introduced cotton to Europe.
Muslim traders and later conquerors spread cotton spinning and fabric-making techniques. Columbus encountered cotton in the Bahamas.

Cotton in America

Cotton was cultivated in Virginia beginning in the 1610s, with the Spanish earlier in Florida.
The slave trade and demand for a large, cheap workforce were key to cotton production's expansion.

Colonialism and Indian Textiles

The British restricted Indian textiles to ensure a stable supply of raw cotton
This was done to strengthen Britain's dominance in the global textile trade.

Fast Fashion

Fast fashion brands like Zara emerged in the 1800s
Mass production and new textile equipment led to lower costs, increased speed of production, and a wider range of options

Industrial Revolution & Textile Production

The invention of the Spinning Jenny by James Hargreaves enabled automated spinning of thread in 1764. The thread was still weak
Richard Arkwright created the water frame in 1769. This improved the strength of the thread and introduced water-powered systems (which enabled 1 person to do the work of many)
The invention of the power loom in 1785 by Edmund Cartwright facilitated the automated manufacturing of cloth.
Improvements in technology and machinery drastically changed the levels of textile production

First Industrial Revolution

Increased textile output in England from 21 million to 347 million yards, 1796 to 1830
Led to Britain's dominance in the global cotton industry for decades

Lowell's Mills

Lowell, Massachusetts was established as a planned textile manufacturing town in the early 1820s
The mills employed thousands of textile workers who were predominantly women and children.
The Lowell girls went on strike over reduced wages in the 1830s and 1840s with some legislative support to remedy the situation in Massachusetts.

U.S. Civil War and Cotton

The Civil War restricted cotton exports from the South to other parts of the world
This had major repercussions on global economies (such as famine), resulting in global turmoil.
Sharecropping became a widespread practice replacing previous practices like slavery.

Slavery and Cotton

Slavery was a central component of the most dynamic and far-reaching production complex in human history.
It was deeply entrenched in the South and troubled many in the North and other regions.

The Textile Industry - Evolution

Estimates show humans started wearing clothes 500,000-100,000 years ago
The Textile industry has been evolving for thousands of years
The industry spread across the region of China, Turkey, India and became heavily linked to the Silk Road

Oil and Gas Industry

Gasoline was initially a byproduct of oil refining.
In the 1800s, gasoline was often disposed of in rivers, and not commonly used until the internal combustion engine was developed.

Gasoline's Impact

Gasoline's political and economic influence are substantial.
William Knox Darcy exploited resources in Persia, now Iran, and founded British Petroleum.
John D. Rockefeller's Standard Oil controlled much of the world's refining capacity in the late 1800s.
Henry Ford democratized auto manufacturing.

Service Industry

The service industry is a large part of all employment (over 50%) and a major part of global GDP. In Canada and in the U.S., it is estimated to be around 67%.
The service sector was a small part of economies that focused on agriculture.
The service sector grew as urban populations grew.
Detroit experienced de-industrialization in the late 20th century, with manufacturing jobs declining

Global Cities in the 1980s

Global cities, such as New York, London, and Tokyo, emerged in the 1980s as centers of finance, law, and global production.
Global financial centers are major beneficiaries of outsourcing and offshoring

Offshoring

The process of moving production or manufacturing to a different country for a lower cost.
Offshoring and outsourcing often overlap in practice
Some companies move jobs offshore to escape regulations, minimize taxes, or enhance production methods.
Critics suggest that offshoring can lead to lower wages, exploitation of workers, and reduced benefits.

OPEC

OPEC was formed in 1960 to coordinate petroleum policies among its member countries
The formation of OPEC resulted from an attempt from members (like Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela) to coordinate and unify the petroleum policies, prices, and supply to ensure fair and stable prices.
OPEC became increasingly global in the 1970s controlling approximately 56% of the global market
Geopolitical events had a destabilizing effect on oil markets.

Supply Chain Disruptions

The COVID-19 pandemic exposed vulnerabilities in global supply chains
Organizations need to establish specific protocols to anticipate, diagnose, detect, activate resources, protect against, and track threats to avoid supply chain disruption.
The ADDAPT framework can help companies establish these capabilities.

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Description

Explore the dynamics of big emerging-market economies and their strategies during crises. Learn about the financial support provided to South Africa's Eskom and the role of the strong US economy in global capital markets. This quiz also highlights the interconnections within the dollar-based financial network and the textile industry's priorities.