The Business of Alcohol: Gin and Rum

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Questions and Answers

What was a key requirement of the Werner Report for the creation of a shared European currency?

Adopt a single language for all EU nations.

Coordinate budgets among member countries. (correct)

Reinstate the gold standard for all currencies.

Establish a common military force.

What was the main reason for the failure of the Currency Snake in 1972?

Lack of interest from EU countries.

Oil crises and uncoordinated national responses. (correct)

High levels of trade between nations.

Introduction of the euro before the agreement.

When was the European Currency Unit (ECU) introduced?

1971

1989

1979 (correct)

1992

What significant event helped Germany agree to join the project for economic and monetary union?

The fall of the Berlin Wall. Signup and view all the answers

Which countries chose not to adopt the euro after the Maastricht Treaty was implemented?

The UK and Denmark. Signup and view all the answers

What was one outcome caused by Denmark voting against the Maastricht Treaty in 1992?

Speculation against weaker currencies causing economic trouble. Signup and view all the answers

In what year did the euro become a 'virtual' currency, primarily used in banks?

1999 Signup and view all the answers

What institutional body was set up in 1994 to prepare for the euro's introduction?

European Monetary Institute. Signup and view all the answers

What was the primary reason Ecuador and Gabon temporarily left OPEC?

To gain freedom from production quotas Signup and view all the answers

Which of the following is NOT a challenge faced by OPEC?

Inability to influence oil prices Signup and view all the answers

What is a key characteristic of Brent Oil?

Light, sweet oil from North Sea fields Signup and view all the answers

Why does West Texas Intermediate (WTI) trade at a discount to Brent Oil?

Due to oversupply in the Midwest Signup and view all the answers

What defines the pricing of oil sands products like dilbit?

Heavier oil priced lower than lighter oils due to quality Signup and view all the answers

The term 'bitumen netback' refers to what aspect of oil pricing?

Price after transport and diluent costs deduction Signup and view all the answers

What factor primarily affects Alberta's royalties from oil production?

The geographic distance of oil from markets Signup and view all the answers

To improve the value of resource production in Alberta, what solution is suggested?

Improved access to global markets Signup and view all the answers

What innovation did Eli Whitney create that significantly increased cotton output?

Cotton Gin Signup and view all the answers

In what way did Samuel Slater contribute to the textile industry in the United States?

He introduced British technology to the U.S. Signup and view all the answers

How did the Industrial Revolution influence gender roles in the workforce?

Women gained financial independence through factory jobs. Signup and view all the answers

What percentage of textile revenue qualifies as fair trade or environmentally stable as of 2007?

0.5% Signup and view all the answers

What was a significant societal change resulting from the Industrial Revolution?

Growth of a middle class Signup and view all the answers

What was one of the consequences of the transition from cottage industry to factories?

Greater overall production capacity Signup and view all the answers

What does the textile industry contribute to the global economy annually?

$450 billion Signup and view all the answers

What were the working conditions like in textile factories during the Industrial Revolution?

Long hours and exploitative practices Signup and view all the answers

What was the primary purpose of OPEC's oil embargo in 1973?

To cause a recession in western economies Signup and view all the answers

Which petroleum category involves the transportation and storage of oil?

Midstream Signup and view all the answers

What major impact does petroleum have on the environment?

Causes toxic emissions Signup and view all the answers

What was the main purpose of the establishment of the Bank of England in 1694?

To raise funds for government naval operations Signup and view all the answers

What aspect of petroleum is considered a major con?

It is a non-renewable resource Signup and view all the answers

What key function does the Federal Reserve serve in the United States?

Acts as a lender of last resort for banks Signup and view all the answers

Which of the following was a major role of Petrocanada when it was established?

To serve as a window on the industry Signup and view all the answers

When was the Bank of Canada established?

1935 Signup and view all the answers

Which country has one of the largest oil reserves as of 2022?

Venezuela Signup and view all the answers

What significant event in 1923 led to stronger banking regulations in Canada?

The Home Bank Failure Signup and view all the answers

What is a common way to invest in the petroleum sector?

Investing in oil futures Signup and view all the answers

What was the aim of the Royal Commission's recommendations in 1964 regarding Canadian banking?

To establish a more competitive banking system Signup and view all the answers

What process leads to the formation of petroleum?

Decomposition of organic matter Signup and view all the answers

Which of the following banks was established first in British North America?

Bank of Montreal Signup and view all the answers

What primary feature differentiates chartered banks in Canada from those in the US?

Involvement of federal government Signup and view all the answers

What significant change occurred in Canada with the 1967 Bank Act revision?

Introduction of mortgage loans by banks Signup and view all the answers

What year did the Treaty of Rome, which initiated discussions about a cooperative economic policy, occur?

1957 Signup and view all the answers

What common EU currency policy is not adopted by all EU member countries?

The Euro Signup and view all the answers

Which professionals are typically classified as gold-collar professionals?

CEOs and government officials Signup and view all the answers

What is the primary difference between offshoring and outsourcing?

Offshoring involves managing facilities in a foreign location, while outsourcing uses independent suppliers. Signup and view all the answers

What factors contributed to the rise of offshoring in the United States?

Technological improvements and favorable global trade agreements Signup and view all the answers

Which of the following best describes 'global production' as used in the context of offshoring?

A strategy of distributing production across multiple countries based on certain conditions Signup and view all the answers

When did US companies first begin offshoring production in East Asia?

1960s Signup and view all the answers

Which technology contributed significantly to the efficiency of the global freight network?

Advancements in ship design and air travel Signup and view all the answers

In what context did the semiconductor industry begin offshoring?

Starting from 1963 and expanding rapidly thereafter Signup and view all the answers

Which organization played a role in supporting economic development that facilitated offshoring?

The World Bank Signup and view all the answers

Study Notes

Part 1 - The Business of Alcohol

Gin Craze: Alcohol was mixed with juniper berries and other herbs for flavouring and medicinal purposes. The 16th century Dutch created "genever," which the British shortened to gin. Gin was inexpensive but also politically impactful. William III, the King of England in the 1600s, placed high tariffs on French brandy and wine, granting tax breaks to British gin distillers. This led to a gin craze, but also backlash with temperance movements and new government licensing to control production. In the 1800s, gin regained popularity, mixed with quinine water as an anti-malaria treatment.
Rum: Distilled from molasses, a byproduct of sugar manufacturing. Rum rose to popularity in the 1700s, driven by large sugar plantations in French and British Caribbean colonies. These required cheap labor, leading to an increase in the importation of slaves. British sailors received a daily ration of Jamaican rum, a tradition lasting until the 1970s. American rum producers later turned to whiskey. The rum industry played a political role throughout history.

Part 2 - "Every day's a Sunday” - The Temperance Movement and Prohibition

Prohibition: The act of forbidding the production, sale, or consumption of alcoholic beverages by law. Largely influenced by Protestant church moral beliefs. Economic arguments were also used.
Prohibition Movements in Canada: Similar to the US, influenced by British and American examples, largely a protestant movement. The Dominion Alliance for the Total Suppression of the Liquor Traffic, and the Women's Christian Temperance Union were 2 major organizations. Women's roles were prominent, linked to the suffrage movement.
The Politics of Prohibition: Scott Act and Local Option were debated. Reformers (Liberals) generally favored the movement. The 1898 referendum saw close results with Quebec strongly opposing prohibition; the Wilfrid Laurier Government didn't act. WWI saw significant prohibition movements, but Quebec did not join in, and only PEI maintained these laws through 1948. The federal government stopped the manufacture and importation of liquor in March 1918.

Part 3 - "Every day's a Sunday” - The Temperance Movement and Prohibition (American Experience), Lack of Success

American Experience: Prohibitionists successfully passed the 18th amendment in 1920, making alcohol illegal in the US. It remained illegal until 1933 when the 21st amendment repealed the 18th. Ken Burns, in a PBS documentary, noted that the initial economic effects of Prohibition on businesses were largely negative, eliminating jobs at breweries, distilleries, saloons, and related trades. The solution was to create a black market.

Article: Buzzkillers

LCBO: Created in 1927 during Prohibition in the US to regulate the sale of alcohol in Ontario, Canada. First day of operations was June 1st, 1927. Aimed to regulate alcohol sales and reduce public intoxication, generate government revenue, and regulate alcohol sales.

Part Three - Trends in the Alcohol Industry

Brand growth: The global market is controlled by a small number of multinational enterprises (MNEs). The largest, AB InBev, had annual revenue of $46.6 billion in 2017. The growth of alcohol companies was driven by heritage brands and familiar names. Technology was also a factor.

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Description

Explore the historical significance and impact of gin and rum on society and economy. From the gin craze in the 16th century to rum's role in the Caribbean slave trade, this quiz dives into the intertwined history of these popular spirits. Test your knowledge on the development and cultural implications of these alcoholic beverages.