Week 7: Alcohol Industry and Prohibition
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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</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.</p> Signup and view all the answers

    What is one potential negative impact of ecotourism?

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

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

    <p>Overtourism</p> Signup and view all the answers

    What characteristic defines commodity money?

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

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

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

    What is one challenge faced with the mislabeling of ecotourism?

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

    Which of the following represents token money?

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

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

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

    Which year marks the end of the Bretton Woods system?

    <p>1971</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.</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.</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.</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</p> Signup and view all the answers

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

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

    Which of the following is NOT a petroleum alternative mentioned?

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

    How does OPEC primarily influence oil prices?

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

    Which mutual fund is focused specifically on energy investments?

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

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

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

    Why did the Keystone XL Pipeline face delays?

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

    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.

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    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.

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