Geog 216 Midterm 2 Flashcards

1
Q

what is demography

A

study of population characteristics important for considering future peoples needs

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2
Q

what is the demographic equation

A

r = b-d + i-e

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3
Q

what is the rate of natural increase

A

RNI = b-d

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4
Q

what is doubling time

A

time required for a population to double in size (70 divided by RNI)

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5
Q

what is the total fertility rate

A

average # of children a woman will have in child bearing years (15-44)

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6
Q

what is the replacement fertility rate

A

of children needed to have to replace ourselves
global number is 2.1

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7
Q

what is the infant mortality rate

A

of deaths that occur before age 1 for every 1000 live births, most progress in this

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8
Q

what is life expectancy, and what is the global average

A

of years expected to live at birth, average = 72

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9
Q

what were population drivers pre WW2 versus post WW2

A

pre ww2: increased food supply & basic living conditions/hygiene
post ww2: public health/medical advances & higher incomes

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10
Q

what is the demographic transition model and name the stages

A

a model of how the size of a population changes as a countries economy develops
1. pre industrial
2. transitional
3. industrial
4. post industrial

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11
Q

what is a population pyramid

A

population distribution by age & sex, can show increases, wars, famines, etc

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12
Q

what are pro natal and anti natal policies with examples

A

to manage fertility rates
pro natal: encourage children e.g. good childcare
anti natal: discourage children e.g. birth control access

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13
Q

decreasing population rates can be ___ or ___ (+ what is the slogan for anti natal)

A

coercive: one child policies
voluntary: educating women, birth control, etc
–> endogenous to devel process
“later, fewer, longer”

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14
Q

where is the biggest population growth and when is the world supposed to reach a stationary population
and how many ppl are added to the world per minute

A

in the developing world (asia & africa) and by 2100
158 to world, 90 in devel countries

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15
Q

does labor or capital move more freely

A

capital moves more freely than labor

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16
Q

who created + define push & pull factors

A

ravenstein created laws of migration (push & pull)
push factor (involuntary): unemployment, persecution, environmental
pull factors (voluntary): better job/weather

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17
Q

describe the wage differentials graph & what it means (and is it entirely true)

A

supply & demand curve meet at L or K
difference between L & K between countries is wage gap
migration leads to decrease in country A & increase in country B labor pools = convergence of wages w migration
–> more to do with industrialization

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18
Q

how many migrants are there, how many are worker migrants and how many are refugees

A

272 million migrants, 164 million migrant workers, 26 million refugees

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19
Q

is intl migration increasing? by what %? and what countries are primary senders / receivers

A

increasing from 2.5% 1995 to 3.5% 2019
senders: india, mexico, china
receivers: us, germany, saudi

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20
Q

what does the ‘stock of migration’ mean

A

of ppl in a country who have at one point migrated

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21
Q

what are the migration pathways and the % of migrants they contain

A

S to N: 40% –> most important
S to S: 33%
N to N: 22%
N to S: 5%

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22
Q

what is a refugee, what are refugee sending/receiving countries, and what pathway do they mainly us

A

displaced person crossing international border –> conflict is biggest driver
sending: syria, afghan, south sudan, myanmar, congo
receiving: pakistan, turkey, north sudan, uganda, germany
– S to S pathway, 81%

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23
Q

what are the drivers of north south migration REERS

A

R- return migration
E- economic opportunity
E- expansion of global companies
R- retirement migration
S- student migration

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24
Q

what are the 5 economic consequences of intl migration

A
  1. employment: need migrants to fill key job areas
  2. taxes & revenue: migrants bring money to govt
  3. brain drain/gain: sending loses educated ppl (haiti) but gains ideas sent back home
  4. well being: improve financially but not socially
  5. remittances
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25
Q

how/ from-to who does remittances flow and how big are remittances

A

remittances- money sent back home by migrant workers
- 4x amount of organized devel assistance
senders: US, UAE, saudi, switzerland, germany
receivers: india, china, mexico, phillipines, egypt

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26
Q

what are internal migrants, and what are the push/pull factors for them

A

permanent movement within same country (just as many as intl)
push: climate change, internally displaced persons
pull: economic - rural to urban

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27
Q

what is the greatest migration in history

A

220 million internal immigrants in china from rural to urban –> living costs high so they are going back

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28
Q

what are natural resources

A

material basis of subsistence & development
- economic, social & cultural concept
robert zimmerman –> resources do not become, they are defined (socially constructed)

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29
Q

what was the case of wild rubber

A

indigenous used rubber from trees, new world curiosity –> settlers find rubber useful
1839 goodyear vulcanizes rubber, creates demand –> henry whickam took rubber seeds and made plantations in asia –> easily accessible, reserves in amazon exhausted now synthetic rubber exists

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30
Q

what is the resource scarcity/substitution cycle 7 steps

A

new resource –> demand rises –> easily accessible reserves exhausted –> resource scarcity –> rising prices –> r & d –> substitution created

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31
Q

what are non renewable resources

A

resources w fixed stock (cant be replaced in human life span)
appropriable (private good)
measured in reserves (3 ways)
e.g. coal

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32
Q

3 ways of measuring reserves

A

estimate: how much exists in the world in total
proven: how much is available to easily economically exploit
potential: how much is available to exploit if prices rise
–> gold example

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33
Q

what is a renewable resource

A

can be renewed
usually state or common property
grow or flow –> measured in flux of resource rate
e.g. wood

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34
Q

what is the rate of regeneration

A

how long it takes renewables to regenerate e.g. little trees to big

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35
Q

whats a sustained yield

A

using renewable resources at a rate that does not impair or damage ability to be fully renewed on a long term basis

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36
Q

are we running out of resources? –> population bomb

A

long standing concern since middle ages, different perspectives
population bomb (paul erhlich 1968) suggests rapid population growth will outstrip resource base

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37
Q

what is the club of rome

A

1972 think tank used computers to simulate population crisis, found we dont have limits to growth, but limits to sustainability

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38
Q

what happened during the oil crisis

A

1973 oil crisis when OPEC refused to export oil to western countries made people fear resource depletion & prices skyrocketed

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39
Q

who was thomus malthus and what did he believe

A

1798 wrote malthusian theory
–> population increased exponentially, while food arithmetically
–> not egalitarian, like darwin, we cant all have babies
–> 1970s, neo malthusians

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40
Q

whats karl marxs view on population

A

malthus is wrong, enough resources, but distribution & access is issue
–> innovation & tech change transcending resource limits

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41
Q

what is the carrying capacity and is it fixed

A

largest # of a population that the environment can support
–> we can change carrying capacity

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42
Q

what is the ultimate resource

A

human ingenuity!: tech and innovations can overcome malthus’ issues
optimistic like marx

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43
Q

what was the simon-ehrlich bet

A

ehrlich bets prices of metal will be higher in the future, simon disagrees
–> simon wins bet price of metal decreases due to ingenuity

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44
Q

how are all three perspectives useful

A

malthus consider limits
marx considers access
ultimate resource considers importance of tech –> all use dynamic synergy

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45
Q

describe food as a resource

A

serves our physiological needs and cultural norms
use very narrow spectrum of plants from food world –> high reliance on few cereals

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46
Q

what is path dependency in food

A

dependence on crop you historically used
north america/europe = wheat
asia = rice
africa = root veggies

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47
Q

why is agriculture important for the global economy? - 5 reasons inele

A

international trade
national revenue
employment
livelihood
environment

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48
Q

why is agriculture important for international trade and who are the biggest exporters

A

1.7 trillion dollars from agriculture
8% of world merchandise trade
–> all global food exports r growing, biggest is fruit & vegs
exporters: US, Indonesia, Malaysia, Thailand, France, Brazil

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49
Q

what is canadas national revenue from agriculture

A

5% of GDP is from agriculture, some countries are more reliant (e.g. Rwanda, 50%)

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50
Q

how much of the worlds employees is employed in agriculture

A

1/3 of the worlds employees, second largest employment by sector

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51
Q

how does agriculture affect livlihood? reliant on for it for what, how much of canada relies on agriculture for livlihood

A

many rely on subsistence farming for food/fuel, but they also sell their agriculture
- only 1.9% of canadas pop is in agriculture, not very reliant

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52
Q

whats the environmental impact of agriculture

A

50% of water usage and 30% of greenhouse gases are from agriculture, also uses lots of land surface

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53
Q

what is subsistence farming

A

farmers reliant on their crops for basic needs with little surplus for market
low input, low productivity, low output

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54
Q

what is cash cropping

A

small households doing medium scale farming for personal consumption and the market
–> usually developing world, big producer of exports

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55
Q

what is industrial/commercial farming

A

large scale, mechanized farming destined for the market
high input, high productivity/output
big greenhouse gas impact

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56
Q

give an example of differences in farmer productivity

A

amazon: 700 kilos per hector, pray and sow method = low productivity
java: 5000 kilos per hector, highly managed and controlled patty system

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57
Q

what is the role of relative factor endowments

A

want to economize on scarcest factors of LLK
so canada in praries has land, capital, but less labor –> highly mechanized
peru has land, less capital and labor –> shifting cultivation
java has labor, medium capital, but low land –> terraces

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58
Q

what are the 2 innovations in agriculture and what are traits of innovation

A
  1. intensification: increase inputs
  2. biological: change crops (GMOs)
    innovations are relative to factor endowments and endogenous (induced by response to specific issue)
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59
Q

what did esther boserup believe

A

as population grows agriculture intensifies –> population drives agriculture not other way around (anti malthus)

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60
Q

what are the 4 types of agriculture methods

A
  1. shifting cultivation: crop land and abandon until its fertile again
  2. bush fallow: leave regrowth for less time until u only have to cut down bush
  3. short term fallow: not leaving forests or rotating fields for regrowth
  4. permanent cultivation & multicropping: output per hector increases –> farm
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61
Q

what was the green revolution and who is norman borlaug

A

borlaug created green revolution in 1970s, change crops for productivity
- green rev package= high yielding crop variety, irrigation, fertilizer, pesticides
–> diffused globally, saved lives (india), but threatened rural farmers
–> now expanded to africa

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62
Q

what was the biotech revolution and where did it start

A

widespread application of bioengineering to increase food production & improve plant/animal strains
–> started 90s US, big GMO increase (st lawrence area)

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63
Q

whats the difference in agriculture growth vs population growth

A

2.4% increase in agriculture per year, more than 2.1% increase in population –> we are ok
–> increasing resources instead of land is issue now

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64
Q

which countries have increased in agriculture production

A

north east asia has surpassed north america/europe
south east asia & subsaharan africa have increased very little
russia has declined

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65
Q

what has happened to the price of food over time

A

price has fallen drastically since 1920s
price spiked in 1970s, and now increasing but still enough food for population –> so question what drives spikes and how we produce food

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66
Q

what is the relationship between energy consumption & GDP

A

strongly correlated
energy is input, when gdp rises input use rises so energy use rises
energy consumption steadily increasing since 1980s

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67
Q

what does a recession (lower gdp) mean for oil exploration and demand

A

oil demand and exploration increasing through 2000s but 2008 recession causes oil price to fall, and less rigs/exploration

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68
Q

who has the biggest energy consumption per capita & who are the biggest energy consumers and why

A

consumption per capita: iceland, canada, norway, us, sweden
energy consumers: iceland, trini, qatar, kuwait, uae, bahrain
–> all have extreme hot or cold climates

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69
Q

what are the inputs & outputs in the global energy system

A

585 EJs in 448 Ejs out –> 31% energy dissipates in global system

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70
Q

what are the largest and important imputs and outputs of the energy system

A

inputs: 1. oil, 2. coal, 3. natural gas
outputs: 1. industry, 2. transport, 3. residential

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71
Q

what era do we live in? how has energy use changed since ww2? what are pros and cons for largest inputs?

A

oil era, energy use skyrocketed
oil: high energy density, easy to transport
natural gas: popular, hard to transport
coal: most abundant, bulky, hard to transport, and pollutant

72
Q

who are the biggest oil producers vs biggest exporters? do reserve locations matter for producers?

A

more oil reserves does not mean main producers
biggest producers: US, Saudi, Russia, Canada, China
biggest reserves: Saudi, Iran, Iraq, Kuwait, UAE

73
Q

what are the 5 biggest oil pathways

A
  1. saudi to china
  2. saudi to southeast asia
  3. canada to us
  4. russia to germany
  5. saudi to india
74
Q

what is opec and how much oil do they produce and are they important?

A

12 oil producing countries wanting to control price of oil
30 million barrels a day, 40% of worlds oil, 80% of reserves
less important because of big producers outside opec like canada or norway

75
Q

does oil have a lot of rent?

A

rent: space to make profit after cost of inputs
if oil barrel costs 5$ sells for 74$ 69 dollar rent is huge –> oil rich countries

76
Q

what has oils price volatility been like

A

oils first discovered and is very expensive, price then drops over time, but tends to spike drastically
–> countries seek energy sovereignty because dependence on oil causes social conflict

77
Q

what was the oil embargo

A

economic crisis of 1973 when opec refused to sell oil to western nations

78
Q

what was the oil shock (iran contra)

A

iranian revolution 1979 led to spike in oil prices –> also happened during arab spring

79
Q

what was the russia vs saudi arabia oil war

A

in 2020 saudi arabia and russia argued over oil prices and they both drove price down to compete –> price went negative

80
Q

what are the chokepoints for oil

A

panama canal, strait of hormuz are neccesary for oil transport

81
Q

when did oil production spike, and when will consumption peak

A

production spiked in 2010 and consumption will spike in 2030 –> looking for sustainable alternatives

82
Q

what is the future for energy?

A

china will be a major player
coal importance levels off, oil will be more important
oil alternatives & resource alternatives will be important

83
Q

what is non conventional oil & gas and what role does the US play

A

non conventional oil/gas uses fracking to dig into sandstone/shale for new reserves
US as the biggest producer, ran out of easily accessible reserves, and found this alternative (substitution cycle)

84
Q

what energy investment by sector has risen and whats fallen?

A

oil investment fallen, natural gas falling
energy efficiency rising, low emissions rising, grids and storage rising
coal and electrification rising very slightly

85
Q

what regions mainly use what energy source

A

china mainly coal & renewable, Eu mainly renewable & efficient, US & rest of the world mainly oil

86
Q

is there hope for fusion

A

lots of hope for fusion, small projects look for working reactor, large experiments look for big advances
–> may be the future

87
Q

what is the new world economy

A

recent 250 years since the industrial revolution

88
Q

what was the context before 1800 (IR) vs after

A

before 1800: malthusian trap- long term cycles of growth in/around one –> not much growth, tension between population and tech devel
1800s onward: huge divergence industrial rev seperates LIC from HIC
–> year vs income per person = huge increase

89
Q

what are the 5 key features of the industrial revolution

A
  1. shift to large scale production (factories)
  2. tech innovations revolutionize production (textiles)
  3. devel of new products (railways, food processing)
  4. penetration of new markets
  5. institutional/organizational structures (banking, labor unions)
90
Q

what are the 3 waves of the industrial revolution & when did the industrial revolution start

A

1760-ww1 = industrial rev
1st wave: britain (1760-1850)
2nd wave: continental europe (1850-mid1870s)
3rd wave: intermediate europe & n america (1870s-1914)
embryos (pockets of industrialization) start in UK

91
Q

when were the 3 phases of industrial revolution in britains wave one

A

phase 1 1760-1790
phase 2 1790-1820
phase 3 1820-1850

92
Q

why did the industrial rev start in britain

A
  1. favorable political/legal climate: no monarchy, no way, 1707 scotland & england, govt focused on private profit
  2. colonies: accumulate wealth, outlet for goods
  3. favorable geo
  4. tradition of industrial employment
  5. conditions ripe for tech devel
93
Q

what was the role of DoL in industrial rev

A

DoL: fragmentation of tasks in production process into different specialized functions
adam smith: pin making 18 steps 1776 looks to sources of labor productivity
increased large scale manufacturing –> DoL is key–> economies of scale, deskill workers, lower wages, control & discipline

94
Q

what was the first wave in britains first phase all about with 4 examples

A

tech innovations: artisans experimenting in workshops
1. newcomen steam engine 1712
2. john kays flying shuttle 1733
3. hargraeves spinning jenny 1764
4. cartwrights power loom 1780

95
Q

what were the embryos of phase 1 in britain?

A

north cornwall: south
south lancashire, east shropshire, southwesr yorkshire: spinning jennys
cydeside, tydeside: in the north
london: biggest city but not for manufacturing

96
Q

what happened in phase 2, and what were follow through innovations?

A

consolidation of agglomeration processes: north/west britain industrial complex thickens growing pools of capital, commodities & labor (supporting industries & banking)
follow through innovations: cotton industry, iron making,= relocate industry

97
Q

what happens in phase 3 and when is the apex of industrial rev in britain

A

expansion of railway system: broaden market outside of existing regions
–> 1851= apex of industrial rev in britain, competitve advanatge over european rivals –> great exhibition

98
Q

what was the second wave and what held it back from happening

A

technological transfer from britain to continental europe –> depends on which regions adapt
before: IR held back by revolutionary wars & political fragmentation

99
Q

what regions did the second wave effect most

A
  1. sambre et meuse (belgium) strong banking sector
  2. nord pas de calais (france) mining
  3. ruhr rhine (germany) steel & coal
    high correlation between coal mines & industrial activity
100
Q

what happened during the third wave, how was expansion bolstered? –> (bolstered is a good thing)

A

spread to intermediat europe and north america
– expansion bolstered by tech refinements eroding barriers for transport costs
–> tsc uneven in IR

101
Q

what do regions across britain and europe have during the IR?

A
  1. different tech traditions
  2. different forms of industrial organization
  3. signifigant institutional differences –> different convergence/divergence across regions
102
Q

post fordism is also known as….

A

post industrialism, knowledge or info based economy, neoliberalism, advanced capitalism –> all synonyms

103
Q

what are kondratiev waves and how long are they and how do prices fluctuate w growth/decline?

A

kondratiev tracked price data points in russia and europe in 19C and found cycles of growth & decline
long waves: 40 years 4 since IR started
in periods of economic growth, prices go up and in economic decline prices go down

104
Q

what are industrial divides/ruptures

A

transition between waves

105
Q

what are the 4 kondratiev waves since the start of the IR

A

IR –> 1815 (good feelings) –> hungry forties –> victorian boom –> 1865 (gilded age) –> depression of 1890s –>fordism
–>roaring 1920s –> great depression –> post fordism (swinging 60s) –> 1980 regan era –> 2000s

106
Q

what is real business cycle theory

A

business cycles result from changes in tech and resource availability
short waves; 7-10 years

107
Q

what is kuznets cycle

A

20-25 years short waves focused on economic booms

108
Q

what is regulation theory and is it perfect

A

framework to describe & explain historical changes in ‘macro structures’ of capitalist economies
heuristic –> not perfect

109
Q

where does rt emerge and what does it emphasize

A

emerges in france 1970s
emphasize historical devel & geography –> focuses on structures of capitalist world economy space
e.g. transition from rust to sun belt why happening and why there

110
Q

what are the 2 lenses of RT glasses

A

called eyeglasses cuz it scans history to find commonalities
regime of accumulation & mode of social regulation

111
Q

what is the regime of accumulation

A

macroeconomic regularity, a common and temporarily coherent way of distributing, producing, and exchanging commodities
- assumes different shapes at different times
- transition from one ROA to another (rupture) closely parralels tech devel

112
Q

what are the 6 characterizations of the ROA

A
  1. set of production techniques
  2. key/leading edge industry sectors
  3. organization of labor (unions)
  4. competitions predominent form
  5. distribution mechanisms of profit
  6. specific spatial forms of expression (geo, clustering vs decentralization etc)
113
Q

what is the mode of social regulation

A

socio political counterpart of ROA –> norms institutions conventions governing ROA
regulatory framework

114
Q

2 key functions of MOSR

A
  1. reflects reproduction of social relations
  2. regularizes overall process of economic reproduction –> mosr is keel and roa is hull
115
Q

when does fordism happen and what starts it

A

1920s-1970s, starts when henry ford reorganizes auto industry in 1913 highland park MI assembly line

116
Q

what is taylorism and what are its 2 goals

A

scientific management devel by f taylor (mech engineer obsessed w efficiency)
1. seperate management & production jobs
2. further seperate production jobs into production lines –> fragmented, highly controlled, deskilled, standardized DoL

117
Q

what is the river rouge complex?

A

vertically integrated production factory in dearborn MI –> all aspects of production under one roof, biggest at the time
- 90 buildings from 1917-1928, car factory

118
Q

what are the changes in fordism from 1920-70 –> consumer uniformity

A

taylorism facilitates mass production & realization of economies of scale
ford realizes mass production = mass consumption
–> use consumer uniformity to create signifigant market base

119
Q

what is the 5$ per day program

A

ford pays workers 5$ per day, more than competition good for 2 reasons
1. lots of turnover on prod lines, workers accept monotonous jobs for higher pay
2. increased worker salary = more purchasing mass produced goods

120
Q

what are the 6 developments enabling fordisms golden era from 1945-69 (all ROA)

A
  1. rise of keynesian economic planning
  2. suburbanization
  3. maturing mass production techniques
  4. key industries: cars, heavy equipment, steel, petro, biotech, electrical appliances, highways and airways
  5. R & D in key sectors
  6. competition: oglipolistic & domestic
121
Q

what is the keynesian welfare state and how is it important for fordism MOSR

A

capital & labor negotiations –> through state for predictable compromise
capital & labor work together to float fordist mass production through state intervention
social contract/mass economic democracy –> benefits white men

122
Q

what are keynesian economics

A

theory based on john maynard keynes stating govt spending should increase during business slumps and decrease during booms

123
Q

what is the regional geography of fordism

A

us mass production concentration in the rust belt

124
Q

what is intl geo of fordism and the marshall plan

A

fordism needs mass expansion of world trade & intl investment
marshall plan: us heavily invests in rebuilding europe post ww2

125
Q

what are the 2 things expanding world trade during fordism allows for

A
  1. us commodities to be consumed overseas
  2. new globalized sources of raw materials
126
Q

what is the bretton woods agreement and what does it do

A

mosr needs to be intl because keynesian economics plays role in intl rules
bretton woods: compact for intl economic rules in 1944 (harry white uk & keynes us)
1. us $ = worlds reserve currency backed by gold
2. fixed exchange rates between currencies
3. regulated flows of capital across border –> world bank, imf, gatt

127
Q

how does gdp grow making fordism golden age of capitalism

A

world gdp grows 4-6% during fordism, after fordism slows down, now grows 2-4% per year (recessions it goes negative)

128
Q

what is stagflation

A

a domestic root of crisis for fordism, when theres rising inflation and stagnating output

129
Q

what were the late 1960s and early 1970s characterized by (4)

A
  1. rigid mass production: assume stable consumer markets
  2. strikes and labor distributions: increased production cost
  3. pressure on KWS entitlement programs
  4. monetary inflation
130
Q

what are the 2 intl roots of crisis for fordism

A
  1. abbrogation of bretton woods agreement (1971) too many us $ circulating out of us, bank runs out of gold
  2. 1973 oil crisis forces tech and org changes (japan cars instead of us)
131
Q

what are the ten post fordism characteristics

A
  1. decrease core manufacturing
  2. growth of peripheral fordism
  3. more telecom tech for global prod
  4. economies of scale to scope
  5. surge in services –> FIRE
  6. more high knowledge/tech jobs
  7. key industries: telecom, biotech, medical, cultural, semiconductors
  8. highly competitive conditions
  9. flexibilization of jobs
  10. just in case to just in time
132
Q

whats the difference between just in time and just in case production

A

just in case: stockpile inventory in warehouses
just in time: lean production systems, coordinate/rely on suppliers for parts only when needed
(started in japan)

133
Q

what are 3 consequences of the post fordist ROA

A
  1. just in time changes production process: focus on team efficiency instead of assembly line speed
  2. switch to vertical disintegration of firms
  3. geography changes to centralization (clustering) of firms –> sillicon valley, and decentralization (stretching) of production process & industrial activity due to globalization
134
Q

what are the 3 consequences of the post fordist MOSR

A
  1. switch from KWS subsidy state to entrprenurial workfare state
  2. state deregulate business –> collective bargaining through unions is replaced by individuals
  3. shift in societal values from mass cosumption to yuppie individidual cultures
135
Q

what are the 3 negative consequences of post fordism

A
  1. increased labor market uncertainty
  2. increased social polarization/inequality
  3. increased competition between individuals and between regions
136
Q

who was hayek and what did he believe

A

austrian economist from 1970s, believes in free market capitalism –> anti keynes

137
Q

who was milton friedman and what was his economic school

A

from chicago school of economics –> believed in free markets and that market forces should be primary driver of economic growth and the govt should ahve minimal intervention

138
Q

who was kieth joseph and what did he believe

A

he was a conservative uk economist in late 60s who supported hayeks free market and influenced margaret thatcher

139
Q

who are some politicians that impacted the switch to post fordism

A

thatcher: british pm who implemented free market policies and pulled away from subsidy state –> winter of discontentment (1979) but saves economy
jimmy carter: high point of keynesian behavior (it wasnt working)
ronald regan: shares thatchers beliefs, elected as president 1980, hard to implement

140
Q

what shifts occured in the world space economy during the rupture from fordism to post fordism and how does that effect new industrial spaces

A

the rupture –> windows of locational opportunity, firms no longer held to manufacturing sites, seek out new locations to escape rigidity
led to new industrial spaced (e.g. sun belt)

141
Q

what are 5 things firms are looking for in the new post fordist era

A
  1. pro business environment
  2. lack of unions
  3. favorable tax policies
  4. cheap land/rents
  5. university linkages
142
Q

what are 2 geographical forces at work during the post fordist point of departure

A
  1. decentralization: dispersion to suitable places (globalization, vertical disintegration)
  2. centralization: clustering/agglomeration of firms
143
Q

define the division of labor and define a ‘moment’ within it

A

seperation of tasks within the labor/production process and the allocation of these tasks to different workers
–. fragment tasks, specialize production functions
–> moment = one specific task in DoL with transaction leading to it

144
Q

what is the basic input output DoL model and what are the types of linkages

A

input: initial steps in production
output: final good produced
hockey stick DoL is example of input-output DoL
upstream linkages: steps closest to raw materials
downstream linkages: steps closest to finished product

145
Q

what is vertical integration/disintegration and what does it effect

A

vertical integration: one firm carries out all moments in DoL
vertical disintegration: multiple specialized firms carry out different tasks
-affects the geography of DoL (where moment occur)

146
Q

what is roundaboutness and what does increasing it lead to

A

the # of interconnected steps between the production of raw materials on which the economy is based, and the production of final outputs
–> increased roundaboutness means more complex DoL, more steps, more linkages, more transactions, and more geo differentiation

147
Q

what is the technical DoL

A

within a firm, production processes are broken down into specialized tasks and theres a vertical heirarchy of transaction processes internal to the firm

148
Q

what is the social DoL

A

between firms, parceling out different tasks between independent firms in patterns of vertical disintegration
–> specialized producers buy and sell through externalized transactions governed by market forces

149
Q

what is average cost and how does it change with output

A

total cost divided by # of goods produced (output)
high cost w little output, drops until reach minimum efficient scale, then rises again with even more output

150
Q

what are total costs, variable costs, fixed costs, and sunk costs

A

total costs = variable costs + fixed costs
variable costs = costs that change based on output e.g. labor, more inputs
fixed costs = costs that exist regardless of output level e.g. warehouse, electricity, utility
sunk costs = costs already put in and cant be recovered

151
Q

what are economies of scale versus dieconomies of scale

A

economies of scale: reducing costs by increasing ouput, advantages of higher output
diseconomies of scale: average costs increase again when output is increased past minimum efficient scale (level of output w lowest possible costs)

152
Q

should you vertically integrate or disintegrate? use the basic formula

A

VDI system: AC = f(x) & AC = g(y)
VI system: AC = h(x,y)
if f(x) + g(y) > h(x,y) then integration is cheaper
if f(x) + g(y) < h(x,y) then disintegration is cheaper

153
Q

what are economies of scale and what are the differences between internal and external ones

A

economies of scale are produced by quantitative increase in output levels to decrease average costs
internal: function of production is within firm
external: function of individual producers sharing costs (producers in similar industry, e.g. technopark montreal)

154
Q

what are economies of scope and what are the differences between internal and external ones

A

economies of scope are based on the level of productivity variety (i.e. qualitative) with cost advantages from producing 2 or more activities together
e.g. dairy farm makes milk, yoghurt, cheese
internal: different tasks under one roof
external: range of different producers in given industrial complex

155
Q

what was the switch in type of economy from fordism to post fordism

A

fordism = economies of scale
post fordism = switch to economies of scope

156
Q

in scenario one looking at economies of scope, is it more cost efficient to have a disintegrated system or integrated and is that an internal or external economy of scope

A

because the integrated system has a lower minimum than the disintegrated system, a internal economy of scope is more cost efficient –> so have both moments produced in same factory setting

157
Q

in scenario two looking at diseconomies of scope, is it more cost effective to have a DI or I system and is this system internal/external

A

when disintegrated system has lower minimum than integrated, external economies of scope are cheaper, –> so have both moments produced at different factory settings

158
Q

in scenario three, by adding transaction costs to the vertically disintegrated firm average costs, what type of economy of scope is now more efficient

A

now the minimum is lower for the vertically integrated firm than the vertically disintegrated firm considering transport costs

159
Q

what does geography matter for?

A

transport costs –> why firms want to locate close to each other if vertically disintegrated so transport costs dont make vertical integration better option

160
Q

why would you integrate production functions (generally speaking & 3 specifics)

A

general: stability & predictability –> strong synergetic interaction
1. managerial efficiency
2. infastructure savings (oil refinery) & moral hazards (secrets leaking)
3. technological interdependencies (feedback loops)

161
Q

whats a moral hazard w example

A

related to info assymetry and who takes on risk (intel, TSMC are chip manufacturors that dont want to leak secrets)

162
Q

why would you disintegrate production function (general and 3 reasons)

A

general: more flexibility and ability to adapt to changing markets
1.negative overspills (noise from printing)
2. possible labor relation problems (UK auto industry parking disputes –> offroad HQ & management
3. uncertainty in final markets –> look for greater flexibility (actor jean example)

163
Q

what are the 3 components of uncertainty in final markets

A
  1. instability in final demand
  2. intense competition
  3. product differentiation
164
Q

what is the tension characteristic of post fordist economies

A

vertical integration vs disintegration

165
Q

why is there a formation of industrial complexes with example

A

because there is a positive relationship between disintegration and proliferation (increase) of externalized transaction activities
e.g. t shirt industry (adam smith shows extent of DoL is limited by demand of market)

166
Q

why would you want to reduce transaction costs in input-output system (t shirt example)

A

so capital investments go through transactions as quickly as possible

167
Q

what are industrial complexes

A

large assemblages of specialized & flexible producers interconnected via an external web of transactions
–> cluster firms in related industry = more roundaboutness

168
Q

what is marshalls industrial district and its 3 forces of agglomeration

A

alfred marshall: focused on 1890-1920 jewlery cluster in UK
1. increase efficiency of linkages
2. create labor pools (job matching/seeking)
3. industrial atmosphere (smth in the air)
–> flows of knowlegde/knowledge spillovers

169
Q

what are the 5 factors encouraging the 3 forces

A
  1. bolstered by institutional infrastructure
  2. cumulative process - feedback loops
  3. developmental trajectories - path dependency
  4. agglomeration reinforces competition
  5. industrial complexes not isolated (mosaic of regional/global complex connection)
170
Q

what are the characteristics of the nature of transactions –> main and 3 more

A

main: positive relationship between distance & cost
1. physical content variability (size, weight)
2. temporal/spatial variability (routine shipping vs special order)
3. neccesity for face-to-face contact (industrial atmosphere)

171
Q

examples of key industrial clusters

A

US: silicon valley, NYC, LA, etc
Montreal: 3 main aerospace clusters
major industrial complexes: different districts e.g. clothing district, within cities

172
Q

what is the schematic representation of industrial complexes

A

agglomeration clusters are not isolated from other agglomerations
post fordist key spatial characteristic: industrial complexes, but sitll connected over global space economy

173
Q

industrial complexes characterized by small firms vs large firms

A

small firms: deep DoL, complex transactions, face to face contact –> agglomeration
large firms: shallow DoL, standardized/predictable transactions, less face to face –> spatial dispersion

174
Q

what are physical transactions (aka traded interdependencies)

A

$ transactions (all that weve discussed above)

175
Q

what are untraded interdependencies

A

trading hard to quantify, knowledge spillovers (3rd force of agglomeration)

176
Q

what are techno optimists and who do they relate to

A

believe scarcity exists, but market signals will alert people abt the scarcity and the substitution cycle will kick in with and human ingeuinity (related to ultimate resource) solves issue