Finals: Transportation Significance Flashcards
Importance of Transportation
improving society’s welfare through appropriate social, political, and economic conditions
What are the expected outcomes in transportation?
Quantitative and Qualitative Improvements in Human Capital and Physical Capital
What is the difference between Human Capital and Physical Capital?
Human Capital is measured through the income and educational level
Physical Capital is measured through infrastructures: utilities, transport, telecommunications
What is the relationship of Human Capital and Physical Capital?
- Development cannor occur without both because the use of infrastructure cannot be effective without the proper operations and maintenance
- Economic activities cannot take place without an infrastructure base
- Transport sector uses infrastructures, that’s why it is an important component of economy and it is used as a tool for development
What are the three roles of the government?
- Initiate & maintain transportation systems
- Intervene the design of feasible routes of covering expenses
- Create regulation or law about transportation
What is the first program that will be initiated by the Government?
Pilot Project
Why should the Government intervene the design of feasible routes of covering expenses?
Because Government is responsible for aiding all passengers wherein the cost cannot be covered by the central group users
What are the three inherent power of the Government?
- Police Power
- Fiscal Power
- Eminent Domain
Explain Police Power
Power of government to implement the law
Explain Fiscal Power
Also known as Taxation Power; this is the power of the government to collect taxes
Explain Eminent Domain
Power of government to seize private property for public use; not for profit
What is a just compensation?
Fair payment; decided by court
What is the essence of the Ancient Egyptian civilization to the Historical Significance?
- they demonstrated how one form of transportation (water) can become the foundation of a great society
- Nile River became the means to transport goods, a way to communicate, and a method for the Egyptian soldiers to defend their country
What is the essence of the Roman Empire to the Historical Significance?
Roman Empire built its road system primarily for military purposes
What is the essence of the European Countries to the Historical Significance?
They developed ships to conquer uncivilized islands by water; Spain and Portugal discovered and influenced the culture of the inhabitants
What is the essence of the machines to the Historical Significance?
- In the Industrial Revolution, countries need to innovate their transportation sector in order to remain powerful; thus these machines led to victory on different wars
- advancement in technology gives a technical advantage to those who used it
What is the social significance of transportation?
- good transportation can help the health and welfare of population; example is the lack of sufficient and effective transportation networks in Africa that caused problem in the famine (scarcity of food) relief efforts there
- ensure that all members of society (young, old, poor, with medical conditions, banned from driving) are able to go to places even without driver’s license, through public transport
What are the 8 Environmental Effects of Transportation?
- Transportation Infrastructural Requirements
- Habitat Fragmentation
- Transportation of Hazardous Substances
- Urban Expansion
- Noise
- Bio-Security Risk
- Solid Waste
- Energy Crisis
Transportation Infrastructural Requirements
Construction of infrastructures need large spaces - cutting trees, shrinking agricultural areas
Habitat Fragmentation
Garbage dumping damage natural maritime - endangerment of water species
Transportation of Hazardous Substances
Fastest-growing emission sector - creates air pollution (contributor to global warming)
Urban Expansion
Urban sprawl leads to traffic congestion and several accidents - due to improper infrastructure usage
Noise
Causes mental disability, irritation, and lack of concentration
Bio-Security Risk
Air-conditioning unit in vehicles produces CFC’s - causing ozone layer depletion
Solid Waste
Transportation produces solid waste in bulk through maintenance of old parts and when vehicles become old
Energy Crisis
Transportation uses energy and burns most of the world’s petroleum
Safest way to travel is by?
Air
Differentiate Place Utility from Time Utility
Place Utility - availability of the product to bring them anywhere - to their destination
Time Utility - availability of product to bring them to their destination anytime
Give the Economic significance of Transportation
- life support of the system of its citizens
- determine the economic value of products or services
- major contributor to the economy and a competitive force in business
- physically connects business to its supply chain partners, which is a major influence on the customer’s satisfaction
- more vital economic activities for a business; can be blame for a company’s inability to properly serve customers
Two types of logistics, and which is more inclined with Transportation?
Inbound and Outbound Logistics (more inclined because we are not a manufacturing industry)
What is backtracking?
Might effect in issues of time and other resources that may lead to lost profit
Faster modes of transpo generally cost more than slower modes, but not in tourism industry, why?
Because we give promos
Define Congestion and why is it not always bad?
It is an unintended consequence but it is an indication of a growing economy because people have the purchasing power
Two levels wherein the economic importance of transportation can be assessed and differentiate the two
Macroeconomic level - importance of transpo for a whole economy
Microeconomic level - importance of transpo for specific parts of the economy
What are the 3 impacts to stakeholders?
- Direct
- Indirect
- Induced
3 Types of impacts?
- Core
- Operational
- Geographical
Geographic concentration of interconnected businesses, suppliers, and associated institutions in a particular field. Clusters are considered to increase the productivity with which companies can compete, nationally and globally
Business Cluster
The major impacts of transport on economic factors can be categorized as:
Geographic specialization
Large-scale production
Increased competition
Increased Land Value
- are a monetary measure of what the transport provider must pay to produce transportation services.
- They come as fixed (infrastructure) and variable (operating) costs
Transportation Cost
Factors Affecting Transportation Cost
– Geography – Type of service – Energy – Economies of scale • are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output – Infrastructure – Mode – Competition – Regulations • Principle or rule employed in controlling, directing, or managing an activity – Surcharges • an extra fee added onto another fee or charge
- managing the usage price of a transport asset, such as the fare paid by users
- to maximize profit in the context where the transport supply is fixed.
Transportation Yield Management
Three Conditions for Yield Management
–A fixed transport capacity
–Unused transport capacity loses all of its utility
–Transport users are willing to pay different rates for the same capacity or service,
What are under those 3 type of Impacts?
Core -cost -capacity Operational -time -reliability Geographical -location -accessibility
is a small scale preliminary study conducted in order to evaluate feasibility, time, cost, adverse events, and effect size (statistical variability) in an attempt to predict an appropriate sample size and improve upon the study design prior to performance of a full-scal
Pilot Project
Policy which 6 seats on plane is available
Overbooking
Economic level that deals with large scale of country
Macroeconomic level
Network of all components, organizations, resources, activities involved a tourist Product
Supply chain
Category of type of impacts where passenger reach destination on scheduled time
Operational
Where CFC’s are coming from
Air Conditioning unit of vehicle
Development of closer economic cultural and political relations
Globalization
Condition of transport network; slower speeds, longer trip times, increase; example: physical use of roads
Congestion
Factor affects cost of transportation that affects how passengers can be carried
Mode
A region will thus tend to specialize in the production of goods and services for which it has the greatest advantages
Geographic specialization
When transport is efficient, the potential market for a given product increases, and so does competition
Increased competition
Land which is adjacent or serviced by good transport services generally has greater value due to the utility it confers to many activities
Increased land value
Principle or rule employed in controlling, directing, or managing an activity
Regulations
An efficient transport system offering cost, time and reliability advantages enables goods to be transported over longer distances and facilitates mass production thus larger markets can be accessed
Large-scale production
Factor that affects cost of transportation that has added fee
Surcharge
Improving intermodal and modal capacity through infrastructure investments is a core strategy to promote economic opportunities
Capacity
Transport developments are commonly associated with lower transport cost, implying that mobility becomes more affordable
Costs
Economic benefits of time improvements are multidimensional
Time
Commonly involves a higher probability that a passenger will reach its intended destination within a schedule time frame
Reliability
An important impact of transportation concerns influencing the location of economic activities since specific sites in proximity to modal or intermodal infrastructure are likely to generate higher value than less accessible sites
Location
The capability to access to a wider market base is a common economic benefit for firms
Accessibility
