Week 7: Alcohol Industry and Prohibition
42 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What characterizes a free floating exchange rate?

  • Its value is determined by market forces without central bank intervention. (correct)
  • It is evaluated based on geopolitical influences.
  • It is fixed by the central bank.
  • It targets specific inflation rates.

Which of the following statements is true about managed floating exchange rates?

  • Central bank interventions are frequent and large.
  • Central bank may intervene occasionally to influence the currency's value. (correct)
  • It is a rigid system with no flexibility in currency value.
  • Currency value is determined solely by external factors.

What defines a currency board system?

  • A monetary policy that targets domestic interest rates aggressively.
  • A system where the currency value fluctuates freely against foreign currencies.
  • A regime where domestic currency has no backing by foreign reserves.
  • A fixed exchange rate relationship with fully backing by foreign reserves. (correct)

Which currency is known for being pegged to the U.S. dollar in a fixed exchange rate system?

<p>Hong Kong Dollar (B)</p> Signup and view all the answers

How do financial sanctions, such as those on Russia's Central Bank, affect a country’s economy?

<p>They can drastically reduce imports and destabilize the economy. (B)</p> Signup and view all the answers

What is one potential negative impact of ecotourism?

<p>Threat to ecosystems (B)</p> Signup and view all the answers

What phenomenon is associated with environmental degradation and overuse of resources?

<p>Overtourism (B)</p> Signup and view all the answers

What characteristic defines commodity money?

<p>Valued for its intrinsic content (A)</p> Signup and view all the answers

How did post-WWII tourism primarily benefit the United States?

<p>Boosting US culture abroad (D)</p> Signup and view all the answers

What type of money is not backed by a physical commodity but by the issuing government’s declaration?

<p>Fiat money (B)</p> Signup and view all the answers

What is one challenge faced with the mislabeling of ecotourism?

<p>Loss of trust among consumers (C)</p> Signup and view all the answers

Which of the following represents token money?

<p>Paper notes representing silver (C)</p> Signup and view all the answers

What was a significant economic issue for the US due to the travel gap post-WWII?

<p>Growing US deficit in balance of payments (B)</p> Signup and view all the answers

What was a primary reason for the British ban on Indian textiles?

<p>To safeguard British industrial interests (A)</p> Signup and view all the answers

What type of economic policies did British authorities implement to restrict Indian textiles?

<p>Tariffs and import duties on textiles (B)</p> Signup and view all the answers

Which invention significantly contributed to the rise of fast fashion during the Industrial Revolution?

<p>The sewing machine (A)</p> Signup and view all the answers

What impact did British colonial policies have on Indian cultural identity?

<p>Reduced Indian cultural identity (D)</p> Signup and view all the answers

Which of these retailers is noted as being the longest running in the fast fashion industry?

<p>H&amp;M (D)</p> Signup and view all the answers

What led to much stronger regulation of banks in Canada after 1923?

<p>The failure of Home Bank (A)</p> Signup and view all the answers

Which year marks the end of the Bretton Woods system?

<p>1971 (C)</p> Signup and view all the answers

What significant change did the 1967 Bank Act in Canada introduce?

<p>It lifted the six percent interest-rate ceiling on loans. (A)</p> Signup and view all the answers

Who presented the 1970 Werner report and what did it highlight?

<p>European Commission; the gradual replacement of national currencies. (A)</p> Signup and view all the answers

What was a key recommendation of the Porter Commission in 1964?

<p>To create a competitive banking system in Canada. (C)</p> Signup and view all the answers

Which countries aligned themselves with the economist approach regarding the adoption of a common European currency?

<p>Germany and the Netherlands (B)</p> Signup and view all the answers

What was created in 1972 to stabilize member states' currencies?

<p>Currency snake (B)</p> Signup and view all the answers

What was primarily responsible for the conservative nature of chartered banking in British North America?

<p>Fear of large banking monopolies (C)</p> Signup and view all the answers

What is one of the main roles of upstream petroleum companies?

<p>Identify, extract, or produce raw materials (A)</p> Signup and view all the answers

What is one of the advantages of petroleum as an energy source?

<p>It has a high power ratio (C)</p> Signup and view all the answers

Which of the following is NOT a petroleum alternative mentioned?

<p>Natural gas (B)</p> Signup and view all the answers

How does OPEC primarily influence oil prices?

<p>By setting production quotas for its members (A)</p> Signup and view all the answers

What is the 'call on OPEC' related to?

<p>The amount of oil needed from OPEC to balance the market (A)</p> Signup and view all the answers

Which of the following statements about petroleum's environmental impact is true?

<p>Carbon emissions from petroleum are toxic to the environment (B)</p> Signup and view all the answers

What is one of the factors determining OPEC's influence on oil prices?

<p>The willingness of OPEC members to comply with production targets (A)</p> Signup and view all the answers

Which mutual fund is focused specifically on energy investments?

<p>Vanguard Energy Fund Investor Shares (A)</p> Signup and view all the answers

What was a significant consequence of Saudi Aramco's nationalization?

<p>Enhanced Saudi control over oil resources (D)</p> Signup and view all the answers

What was one of the main factors behind the US focusing on energy independence after 2008?

<p>Advancements in hydraulic fracturing and horizontal drilling (B)</p> Signup and view all the answers

What was a key lesson in business derived from Saudi Aramco's challenges?

<p>Ethical conduct as fundamental to long-term success (D)</p> Signup and view all the answers

Which factor significantly limited Canada's pipeline infrastructure compared to the US?

<p>Public opposition and environmental policies (B)</p> Signup and view all the answers

What was the primary objective of the National Energy Program (NEP) introduced in Canada?

<p>To achieve Canadian energy independence (A)</p> Signup and view all the answers

What event prompted Canada’s strong energy integration with the US?

<p>The need during geopolitical crises such as the Iranian Revolution (C)</p> Signup and view all the answers

Why did the Keystone XL Pipeline face delays?

<p>Environmental opposition and political changes (C)</p> Signup and view all the answers

What major legislative change did the US implement in 2015 regarding oil production?

<p>Lifting the 40-year ban on crude oil exports (D)</p> Signup and view all the answers

Flashcards

Ecotourism

Tourism focused on experiencing natural environments, often supporting conservation efforts and local communities.

Overtourism

Excessive tourism causing negative impacts on the environment, such as resource overuse and environmental degradation.

Commodity Money

Money with inherent value, like gold or silver coins, or other items with agreed-upon value.

Token Money

Money with face value higher than its intrinsic value; exchangeable for a commodity like gold or silver.

Signup and view all the flashcards

Fiat Money

Money not backed by a physical commodity; its value comes from government declaration and trust.

Signup and view all the flashcards

Money

A generally accepted medium of exchange for goods and services, enabling trade without bartering.

Signup and view all the flashcards

Balance of Payments

The record of all economic transactions between a country and the rest of the world.

Signup and view all the flashcards

Tourism as Soft Power

Using tourism to advance a country's image and influence abroad. Promoting culture and fostering goodwill.

Signup and view all the flashcards

Free Floating Exchange Rates

Exchange rates determined solely by market forces without central bank intervention.

Signup and view all the flashcards

Managed Floating Exchange Rates

Exchange rates primarily driven by supply and demand, but central banks might occasionally intervene to influence the currency's value.

Signup and view all the flashcards

Fixed Exchange Rates

A currency's value is fixed by the central bank against one or more other currencies.

Signup and view all the flashcards

Currency Board System

An exchange rate system where a country's currency is fully backed by a foreign reserve currency.

Signup and view all the flashcards

Financial Sanctions Impact

Financial sanctions can significantly restrict a country's ability to import goods and services, impacting its economy.

Signup and view all the flashcards

Canadian Banking System

A branch banking system in British North America, distinct from the US's looser system.

Signup and view all the flashcards

1923 Bank Failure

The Home Bank failure, leading to stronger banking regulations in Canada.

Signup and view all the flashcards

Porter Commission

A 1964 Royal Commission that recommended a more competitive banking system in Canada.

Signup and view all the flashcards

1967 Bank Act Revision

Lifting the 6% interest-rate ceiling on personal loans, allowing banks into the mortgage field in Canada.

Signup and view all the flashcards

Euro Adoption

EU states aiming for a common currency; some have opted out.

Signup and view all the flashcards

Treaty of Rome

The 1957 founding document of the EEC.

Signup and view all the flashcards

Bretton Woods System

An international monetary system replaced in 1971.

Signup and view all the flashcards

Currency Snake

A 1972 system of pegged exchange rates among European countries.

Signup and view all the flashcards

British textile ban impact

The British banned Indian textiles to protect their own textile industry and gain control of India's cotton.

Signup and view all the flashcards

Fast fashion's Industrial Revolution link

The Industrial Revolution boosted fast fashion through advancements like the sewing machine, and mass production in mills.

Signup and view all the flashcards

Fast fashion outsourcing

Companies like Zara, H&M outsourced textile production to save money.

Signup and view all the flashcards

Industrial Revolution's impact on clothing costs

The price of clothing became cheaper, due to new technologies and mass production.

Signup and view all the flashcards

Mall stores' demise vs. fast fashion

Fast fashion's constant new inventory outpaced mall stores' ability to keep up with the demand, leading to closures or difficulties for mall stores.

Signup and view all the flashcards

Petroleum

A naturally occurring liquid found beneath the earth's surface, refined into fuel for vehicles, heating, machines, and plastics.

Signup and view all the flashcards

Upstream Petroleum Company

A company involved in the identification, extraction, or production of raw petroleum.

Signup and view all the flashcards

Downstream Petroleum Company

A company that processes and refines crude oil into usable products like gasoline and plastics.

Signup and view all the flashcards

Midstream Petroleum Company

A company that connects upstream and downstream companies by storing and transporting oil and refined products.

Signup and view all the flashcards

Petroleum Products Impact on Energy Consumption

Petroleum products account for approximately one-third of the world's total energy consumption.

Signup and view all the flashcards

OPEC's Role in Oil Prices

Organization of the Petroleum Exporting Countries (OPEC) can significantly influence oil prices by setting production targets for its member countries.

Signup and view all the flashcards

Call on OPEC

The amount of oil needed from OPEC countries to balance the market when demand exceeds what non-OPEC producers supply.

Signup and view all the flashcards

Petroleum's Environmental Impact

Petroleum extraction, processing, and transportation can have negative environmental consequences, including carbon emissions and habitat damage.

Signup and view all the flashcards

Saudi Aramco Nationalization

The process by which Saudi Arabia took control of its oil industry, reclaiming its valuable natural resources.

Signup and view all the flashcards

The 1990 Project

Saudi Aramco's strategy to cut costs and diversify its business beyond oil, venturing into fields like chemicals.

Signup and view all the flashcards

Leadership Misconduct

Ethical breaches by Saudi Aramco's leadership, harming the company's reputation and trust.

Signup and view all the flashcards

US Shale Revolution

The US's dramatic increase in oil production after 2008, driven by advancements in fracking and horizontal drilling.

Signup and view all the flashcards

Canada's Oil Sands Reserves

Canada's vast reserves of oil trapped in sand, providing a significant source of oil production.

Signup and view all the flashcards

Energy Security

A country's ability to secure its energy supply, often with the goal of being self-sufficient.

Signup and view all the flashcards

NEP (National Energy Program)

Canada's 1980 program to achieve energy independence, encountering resistance from Alberta and straining US-Canada relations.

Signup and view all the flashcards

Keystone XL Pipeline

A proposed pipeline to transport Canadian oil to the US, facing delays due to environmental concerns and political opposition.

Signup and view all the flashcards

Study Notes

Week 7: Alcohol Industry

  • Gin and rum were politically impactful during the 17th and 18th centuries.
  • Dutch introduced Genever in the 16th century, British shortened it to Gin.
  • Gin became popular in Britain due to its affordability and low tariff.
  • The Gin Act of 1751 was introduced in response to public drunkenness associated with Gin.
  • In the 1800s, Gin's popularity recovered when mixed with quinine water.
  • Rum popularity rose in the 17th and 18th centuries, particularly in Caribbean colonies.
  • Large sugar plantations in the Caribbean led to increased African slave importation.
  • British sailors and Canadians were required to drink Jamaican rum.
  • Americans were not allowed to drink whiskey on ships.
  • Bacardi became a major rum supplier to Spanish royalty from the 1880s.
  • Fidel Castro's actions led Bacardi to relocate to Puerto Rico.
  • Bacardi is still seeking compensation for these actions.

Week 7: Prohibition

  • Prohibition is the restriction or banning of alcohol.
  • It was influenced by Protestant moral beliefs and economic arguments.
  • The Dominion Alliance for the Total Suppression of the Liquor Traffic and the Women's Christian Temperance Union were prominent prohibitionist organizations.
  • In Canada, prohibition had varying levels of support and opposition across provinces, specifically in Quebec.
  • The 1898 referendum in Canada resulted in no major action.
  • WWI saw a push for prohibition, considered patriotic due to conserving resources.
  • Prohibition in the US started in 1920 with the 18th amendment.
  • The 21st amendment repealed prohibition in the US.
  • Prohibition resulted in numerous issues with jobs and organized crime.
  • The Canadian province of Ontario created the LCBO in 1927, a government-controlled outlet for alcohol sales.
  • The LCBO was a response to prohibit illegal selling of alcohol.
  • Global alcohol markets are controlled by a small number of multinational enterprises (MNEs).
  • AB InBev is the largest MNE in the alcohol industry.
  • The growth of alcohol companies is driven by familiar, established brands.
  • Profits depend on increased consumption; however, this is not a healthy trend.
  • Voluntary and non-voluntary restrictions on alcohol advertising are not highly effective.
  • France's Loi Evin regulates alcohol marketing.

Part 3: MNEs and Regulation

  • Smaller jurisdictions face difficulties in regulating large multinational enterprises (MNEs) due to lobbying efforts.
  • The global wine industry saw a shift in dominance from European countries (France, Italy) to other regions from the 1980s onwards.
  • Consumer demand and large distribution networks influenced these changes.
  • The USA and Australia saw early success in gaining market share but Australia's growth has been slower compared to other latecomers.

Part 3: Brand Stretch

  • Brand stretching is the extension of alcohol brands into non-alcoholic products.
  • This is done to boost brand visibility and association with everyday items for better recognition.
  • Some popular examples of brand stretching are (Jack Daniels BBQ sauce, Virgin airlines).

Week 8: Travel and Tourism

  • Tourism requires two factors to occur: security and resources to travel.
  • Significant travel expansion occurred after World War II, due to cheaper air travel and discount carriers.
  • The end of the Cold War opened up new tourist destinations, changing the global travel economy.
  • Cruise ships went from simple transportation to popular tourist attractions by the late-19th century.

Week 11: The Oil Industry

  • Gasoline is a refined product of oil.
  • The internal combustion engine led to an increased demand for gasoline, driving the need for more oil exploration and production.
  • Major players like John D. Rockefeller in the oil industry played important roles in establishing the industry's modern global form.
  • Wars, shifting political landscapes, and environmental concerns impacted the oil sector's dynamics.
  • Oil-producing countries and organizations (OPEC) significantly influenced global oil prices and production targets.
  • OPEC sought to stabilize global oil markets.

Week 9: Global Finance

  • Money is anything generally accepted as an exchange medium in society.
  • Money includes coins, paper money, and digital currencies (e.g., Bitcoin).
  • Potosi was a major silver-producing city that spurred early global capitalism.

Week 12: The Service Industry

  • The service industry is a large portion of the global economy.
  • Deindustrialization describes the decline of manufacturing industries.
  • Detroit's transition away from an auto-focused economy to a service-based economy is an example of deindustrialization.
  • Service-based economies have complexities that differentiate them from product-based ones.
  • Examples of the challenges include cultural difficulties, inconsistencies, and cost issues.
  • Offshoring customer service roles can lead to communication and cultural issues.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Quiz Team

Related Documents

Week 7: Alcohol Industry PDF

Description

Explore the historical impact of gin and rum in the 17th and 18th centuries, including their roles in politics, society, and the economy. Learn about significant events such as the Gin Act of 1751 and the effects of Prohibition on alcohol consumption. This quiz delves into the complex dynamics between the alcohol industry and its cultural implications.

More Like This

The Business of Alcohol: Gin and Rum
50 questions

The Business of Alcohol: Gin and Rum

WellBeingVigor avatar
WellBeingVigor
Business of Alcohol: Gin and Rum History
45 questions

Business of Alcohol: Gin and Rum History

ThrilledQuasimodo4161 avatar
ThrilledQuasimodo4161
Alcohol Industry: Gin and Rum Overview
24 questions

Alcohol Industry: Gin and Rum Overview

StunningPythagoras4121 avatar
StunningPythagoras4121
The Business of Alcohol: Trade and Politics
36 questions

The Business of Alcohol: Trade and Politics

ThrilledQuasimodo4161 avatar
ThrilledQuasimodo4161
Use Quizgecko on...
Browser
Open
Browser
Browser