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Questions and Answers
What is a defining characteristic of services in the service economy?
What is a defining characteristic of services in the service economy?
What accounted for a significant change in the employment landscape in Canada from 1867 to 1987?
What accounted for a significant change in the employment landscape in Canada from 1867 to 1987?
How did technology impact the service economy?
How did technology impact the service economy?
During the economic transition, what proportion of the global GDP did services account for?
During the economic transition, what proportion of the global GDP did services account for?
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What major factor contributed to Detroit's decline as an automotive industry hub?
What major factor contributed to Detroit's decline as an automotive industry hub?
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In which year did the service sector employ only 33% of the population in Canada?
In which year did the service sector employ only 33% of the population in Canada?
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What effect did automation have on Detroit's job market in the automotive industry?
What effect did automation have on Detroit's job market in the automotive industry?
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Which historical economic belief undervalued the service sector prior to its growth?
Which historical economic belief undervalued the service sector prior to its growth?
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What factors contributed to the rise of global cities in the 1980s?
What factors contributed to the rise of global cities in the 1980s?
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Which income distribution pattern emerged as a result of the service sector's growth?
Which income distribution pattern emerged as a result of the service sector's growth?
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Which of the following sectors is primarily knowledge-based?
Which of the following sectors is primarily knowledge-based?
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How does offshoring differ from foreign direct investment (FDI)?
How does offshoring differ from foreign direct investment (FDI)?
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Which of the following is a significant environmental impact of the tourism sector?
Which of the following is a significant environmental impact of the tourism sector?
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What is a primary consequence of the income polarization resulting from service sector growth?
What is a primary consequence of the income polarization resulting from service sector growth?
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Which service sector is characterized by top-level decision-making impacting large populations?
Which service sector is characterized by top-level decision-making impacting large populations?
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What percentage does the service sector account for in the global economy?
What percentage does the service sector account for in the global economy?
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Which of the following is NOT a characteristic of services?
Which of the following is NOT a characteristic of services?
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What crucial role did technological advances play in the rise of global cities?
What crucial role did technological advances play in the rise of global cities?
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Which statement best describes the impact of cruise ships on the environment?
Which statement best describes the impact of cruise ships on the environment?
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Which factor greatly contributed to the modern offshoring boom post-World War II?
Which factor greatly contributed to the modern offshoring boom post-World War II?
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What is a key benefit of using dashboards in supply chain management?
What is a key benefit of using dashboards in supply chain management?
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In the diagnosis phase, which action is important for a complete risk description?
In the diagnosis phase, which action is important for a complete risk description?
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What is an essential action during the activation phase of supply chain management?
What is an essential action during the activation phase of supply chain management?
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What should be regularly updated to protect against future supply chain disruptions?
What should be regularly updated to protect against future supply chain disruptions?
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Which of the following actions contributes to tracking supply chains effectively?
Which of the following actions contributes to tracking supply chains effectively?
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What is a recommended focus area to enhance detection and diagnosis in supply chains?
What is a recommended focus area to enhance detection and diagnosis in supply chains?
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What is the primary purpose of developing emergency playbooks in supply chain management?
What is the primary purpose of developing emergency playbooks in supply chain management?
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What is a crucial strategy to excel in supply chain management according to the ADDAPT framework?
What is a crucial strategy to excel in supply chain management according to the ADDAPT framework?
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What was a key factor in the early origin of offshoring in the electronics industry?
What was a key factor in the early origin of offshoring in the electronics industry?
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Which of the following best describes the impacts of offshoring on developing countries?
Which of the following best describes the impacts of offshoring on developing countries?
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What was a significant outcome of the end of the Bretton Woods system?
What was a significant outcome of the end of the Bretton Woods system?
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Which phase of the ADDAPT framework focuses on systematically identifying known triggers and anticipating risks?
Which phase of the ADDAPT framework focuses on systematically identifying known triggers and anticipating risks?
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How did communication technology advancements impact global operations?
How did communication technology advancements impact global operations?
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What was a major reason companies moved their operations to tax havens?
What was a major reason companies moved their operations to tax havens?
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What are skilled labor availability and proximity to customers indicative of in offshoring decisions?
What are skilled labor availability and proximity to customers indicative of in offshoring decisions?
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What characterized the reaction of Loblaw during the initial stages of the COVID-19 pandemic?
What characterized the reaction of Loblaw during the initial stages of the COVID-19 pandemic?
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Which of the following best describes the concept of offshore finance?
Which of the following best describes the concept of offshore finance?
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What was a significant factor that enabled the growth of offshore banking in the 1970s?
What was a significant factor that enabled the growth of offshore banking in the 1970s?
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What challenge is associated with centralized global systems in production?
What challenge is associated with centralized global systems in production?
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Which of the following was a primary criticism of offshoring practices?
Which of the following was a primary criticism of offshoring practices?
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What aspect of production offshoring often remains domestic in higher-value tasks?
What aspect of production offshoring often remains domestic in higher-value tasks?
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What was the outcome of the Panama Papers leak in 2016?
What was the outcome of the Panama Papers leak in 2016?
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What was a primary consequence of Detroit's economic decline in the 1970s and 1980s?
What was a primary consequence of Detroit's economic decline in the 1970s and 1980s?
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Which factor contributed to Pittsburgh's transition from a steel hub to a health care dominant city?
Which factor contributed to Pittsburgh's transition from a steel hub to a health care dominant city?
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What type of jobs predominantly replaced steel jobs in Pittsburgh by 1980?
What type of jobs predominantly replaced steel jobs in Pittsburgh by 1980?
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Which cities emerged as global economic hubs in the 1980s?
Which cities emerged as global economic hubs in the 1980s?
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How did the income distribution trend change in service-dominated economies?
How did the income distribution trend change in service-dominated economies?
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What was a significant aspect of the service economy by the 21st century?
What was a significant aspect of the service economy by the 21st century?
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What event marked a significant economic crisis for Detroit?
What event marked a significant economic crisis for Detroit?
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What role did technology play in the transformation of the service economy?
What role did technology play in the transformation of the service economy?
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In the 1980s, what characterized the job market in global cities?
In the 1980s, what characterized the job market in global cities?
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What was the primary cause of the decline in Pittsburgh's steel industry?
What was the primary cause of the decline in Pittsburgh's steel industry?
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What social consequence is associated with the shift to service-dominated economies?
What social consequence is associated with the shift to service-dominated economies?
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What major shift occurred in the Canadian workforce from 1867 to 1987?
What major shift occurred in the Canadian workforce from 1867 to 1987?
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What challenge was faced by the steel industry during the 1980s in Pittsburgh?
What challenge was faced by the steel industry during the 1980s in Pittsburgh?
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Study Notes
Service Economy Overview
- The service sector, encompassing diverse activities like healthcare, education, and finance, is growing globally.
- Currently, services account for two-thirds of global GDP and 50% of global employment.
- Agriculture's decline and technological advancements (telegraph, telephone, internet) have facilitated the shift towards a service-based economy.
- The service sector's expansion has reversed historical roles, as in Canada, where agriculture's prior dominance has transitioned to services.
Deindustrialization Case Studies
- Detroit's Decline: The automobile industry's hub, Detroit, experienced deindustrialization due to U.S. automakers losing market share to Japanese competitors. Initial job losses due to automation happened earlier in the 1950s. A population decrease further hampered the city.
- Pittsburgh's Transition: Pittsburgh, initially a prominent steel producer, transitioned to health care as the steel industry declined due to economic recessions, oil crises, and automation. Health care's growth has rivaled steel's peak. However, this transition exhibited concerning socioeconomic trends like income inequality and precarious jobs.
- Global Cities (1980s): Global cities like New York, London, and Tokyo became economic powerhouses driven by advanced services (law, finance). Globalization through technology led to centralization of decision-making around multinational corporations (MNCs), separating high-paid expert roles from low-wage support positions, resulting in a U-shaped income distribution.
Technology and the Service Economy
- Historically, goods production was considered economically vital due to productivity gains and ease of trade.
- Technological innovations like the telegraph, telephone, and internet facilitated global trade and communication, enabling the growth of global service economies.
The Five I's of Services
- Intangibility: Services cannot be physically touched, seen, or owned.
- Inseparability: Production and Consumption happen together, and services cannot be stored.
- Inventory: Services cannot be stored like physical items.
- Inconsistency: Services differ each time they are performed.
- Involvement: Both the service provider and consumer actively participate.
Environmental Impact of Services
- The service industry, while intangible, has a significant environmental footprint.
- Tourism contributes to pollution and ecological damage; transportation sectors generate significant greenhouse gas emissions.
- The cruise industry exemplifies the environmental costs of polluting services.
Modern Service Sectors (Quaternary and Quinary)
- The quaternary sector involves knowledge-based activities like IT, consulting, and education, prominent in developed nations.
- The quinary sector focuses on high-level decision-making affecting large populations or global matters, dominated by top executives and government leaders.
Offshoring Overview
- Offshoring involves setting up production facilities outside a company's home market to manufacture goods sold back to the home market.
- It differs from foreign direct investment (FDI) which focuses on local markets, and outsourcing, which is purchasing services from foreign suppliers.
- Offshoring initially grew with European colonialism in the 1500s and amplified by post-WWII factors like GATT, the IMF and World Bank (promoting global trade and stability).
- Technological advances, especially in transportation and communication, were key drivers for offshoring.
Offshoring Challenges and Impacts
- Choices between centrally coordinated global systems and decentralized regional systems involve balancing efficiency against risk.
- High-value tasks like product development and R&D often remain in developed countries, influenced by factors like skilled labor availability and proximity to consumers.
- Offshoring has economic and social impacts, critiqued for weakening unions, lowering wages and impacting national regulations in developed countries, while developing countries have experienced varying outcomes.
Offshore Finance
- Offshore finance involves relocating banking and financial activities outside a country's regulatory framework to reduce taxes and avoid oversight.
- Tax havens (small economies with disproportionate financial services) have grown in importance.
- Examples include the Panama Papers scandal, revealing widespread use of offshore entities by politicians.
The ADDAPT Framework
- The ADDAPT framework aims to enhance supply chain resilience by anticipating, detecting, diagnosing, activating, protecting and tracking disruptions.
- It emphasizes systematic capabilities for managing disruptions both known and unknown challenges (e.g., pandemics).
- Case studies (e.g., Loblaw's response to the COVID-19 pandemic) showcase the reactive and often time-intensive nature of crisis management.
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Description
Explore the dynamics of the service economy and its growth globally, accounting for significant GDP and employment. This quiz also examines case studies of deindustrialization, particularly in Detroit and Pittsburgh, highlighting the transitions from manufacturing to service-based industries.
