GLOBEEU2016 Flashcards

Question

**What characterized the period of Export orientation and the expanding welfare state (1957-1981)?**

Answer 1

* DK one of the fastest growing European economies from 1957-1970 due to: * Growth of export-oriented industries ⇒ EEC, EFTA and OECD playing a large role. * An explosive expansion of domestic service industries, particularly in the public sector * H.C. Hansen formed one of the only majority governments in Danish history (Social democrats). * Strongly increased public spending focused on improving health care, education, retirement support and infrastructure The economy gets more and more competitive again with public regulation.

Answer 2

* Immigrants from 3 % of population in 1980 to 9 % in 2007 whereas only ⅓ was from western countries (immigrants from especially Middle East and Africa) * Poul Schlüter’s government * Cutting public spending to improve government finances * Focus on liberalization and creating growth on private initiatives (attracting FDI) * Increased privatization of all industries (even state-owned companies) * European integration despite “no” to the original Maastricht treaty * Danish companies started merging (economies of scale), investing (R&D for productivity) and expanding internationally. * Arla Foods, Danske Bank, Danish Crown, ISS, * Flexicurity system * Improved the current account balance through “Kartoffelkuren”, which limited private consumption and of course also led to some unemployment * WTO Very competitive market formation with public regulation (common market).

Answer 3

The most important business man in Denmark in 1860s and 1870s. He focused on technology regarding infrastructure: Telegraphy, telephone and railways. Also part of founding DFDS (shipping), The Great Northern Telegraph Company ...and part of a lot of mergers with Privatbanken such as with: Tuborg Fabrikkerne, De Danske Spritfrabrikker, Faxe Kalkbrud, Burmeister & Wain etc.

Answer 4

* _Phase 1_: Preparing for international competition through a number of large mergers e.g. Danske Bank, Handelsbanken and Provinsbanken (1990) * _Phase 2_: Diversification through acquisition of national insurance companies, real estate agents and mortgage-credit institutions in order to create “financial supermarkets” catering to all needs of corporations and private customers * _Phase 3_: Internationalization - Had taken place since 1970, but the deregulation of national banking laws in Europe in late 1980 and the creation of EU in 1993 made large-scale international operations possible and attractive

Answer 5

* Very slow in implementing laws against monopolies * 1937: still legal to have cartels with price agreements but the agreements should be registered as the Danish state wanted to show power and be able to estimate taxes * 1989: No longer a monopoly law or council but a COMPETITION law.

Answer 6

* EU 28 is the biggest single market in the world measured by nominal GDP (US is close) * +500 mio. people (US 335, China 1.4 billion, India 1.3 billion)

Answer 7

* Low fertility rate and an elderly population * Neo-liberal policies since 1990 (after Soviet Union and Yugoslavia breakdown) * All threatened by the emerging markets around the world (especially Asia) in the perception of Europe being the old economic player now getting overrun by new players.

Answer 8

* Level of public spending and size of welfare state * Big difference in size of economies * Big difference in GDP per capita

Answer 9

1. Nordic model: high public spending, focus on active labor and flexicurity, high skilled labor and new technologies 2. Anglo-Saxon model: (UK and baltic similar) ⇒ Low unemployment protection, the free market, weak labor unions 3. Continental model: insurance-based benefits, strong labor unions (but weakening) - France, Germany, Belgium, Austria etc. 4. Mediterranean model: low social spending, family networks sharing the burden

Answer 10

* _Employment_: 75 % of 20-64 year olds to be employed * _R&D_\_ 3 % of GDP to be invested in R&D * _Climate change and energy sustainability:_ * Greenhouse gas emissions to be at least 20 % below 1990-levels * 20 % of energy to come from renewables * 20 % increase in energy efficiency * _Education:_ * Early school leavers rate to fall below 10 % * At least 40 % of 30-34 years old to have tertiary education * _Fighting poverty and social exclusion:_ 20 million fewer people to be in or at risk of poverty and social exclusion

Answer 11

* Northern European countries (Scandinavia, UK, Netherlands, Germany) ranks in the top of the world * Eastern European and Southern European are far from the same level Big difference in competitiveness; big part of what led to the EURO-crisis.

Answer 12

Large MNCs and SOEs are important. SMEs are underdeveloped but still very important for the European market. State-owned enterprises (SOEs) also play a very important rule with 80 % of the value added for Russia and 48 % for Norway to give some examples.

Answer 13

European firms are central to the global services industry but are declining in importance in manufacturing.

Answer 14

* SMEs acts as vehicles for knowledge spillover which can be accessed by LSEs * SMEs creating an increased degree of competition in the input market which, in turn, promotes innovation and the spread of new ideas * Increasing the degree of diversity within the marketplace.

Answer 15

* Free trade area (FTA) * Tariff and quota-free trade between member states * Goods from third-party countries usually enters via the member state with the lowest tariff * Customs union * Free trade WITH a _common external tariff_ * Single market * Freer mobility of factors of production: Goods, services, capital, and labor * Cooperation of development of other policies such as competition and regional policies * Economic and monetary union (EMU) * Limits on the independent actions of states * Monetary stability as an accompaniment to economic unification achieved via fixed exchange rates or a single currency * More fulsome centralized supranational power * Policy harmonisation

Answer 16

With the Treaty of Paris back in 1951. Establishment of ECSC with Belgium, France, Italy, Luxembourg, Netherlands and West Germany.

Answer 17

Since the Treaty of Rome back in 1957 with the establishment of CAP; the Common Agricultural Policy

Answer 18

In 1960 with the creation of the European Free Trade Area (EFTA). UK, Norway, Sweden, Denmark, Austria, Iceland, Portugal and Switzerland joined.

Answer 19

SEA in 1985 ⇒ Focus on establishing the single market the Treaty of Rome back in 1957 had called for. * More qualified majority voting to the Council of Ministers ⇒ Making it easier to implement the program quickly * Increased role of the European Parliament ⇒ making it more democratic (voice of the people with bigger role). * Enhanced policy competence to the European Commission regarding environment, R&D, technology and economic and social cohesion. * Creation of a new court - Court of First Instance (CFI) to relieve the heavy burden on the European Court of Justice (ECJ)

Answer 20

Signed by most countries in 1992 despite Denmark who voted no with 50,7 %. Thus, the Edinburgh agreement was established with 4 opt-outs for Denmark and was finally signed and put into place in 1993 working from November 1, 1993. * The European Community governing and regulating the single market, CAP, and _new elements_ such as EMU * More power to European Parliament with a veto-right * Ombudsman created to receive complaints from citizens * European Court of Justice could now give fines to member states * Common foreign and security policy (CFSP) - a unified Europe * Cooperation in justice and home affairs (one of DKs opt-outs) * Includes asylum policy, controls on external borders, immigration policy and residence rights of third country nationals, police, customs etc.

Answer 21

1997. * Anti-discrimination became a key objective: * gender ,racial, ethnic origin, religion or belief, disability, age or sexual orientation * European Parliament's role further enhanced * President of EC gained rights to object to appointments of Commissioners and to allocate and reshuffle portfolios

Answer 22

(came into force in 2009) * European Council and Council of ministers formally separated * Powers of European Parliament to be extended via application of co-decision procedure to more policies, especially in areas of justice, security and immigration * MEPs to be reduced to 751 * Citizens’ initiative ⇒ If signed by a million EU citizens, an initiative can require the EC to submit proposals in specific policy areas * Common energy policy and a strategy on global warming * “Solidarity clause” if a member state is subject to terrorist attack or the victim of a man-made or natural disaster.

Answer 23

751. Germany (96) France (74) UK (73) ⇒ LEAVING = changes in the political structure within EP.

Answer 24

Jean-Claude Juncker (Luxembourg) from 2014-2019.

Answer 25

Based in Luxembourg. * 28 judges - one from each member state. * 9 advocate-generals who deliver preliminary opinions on cases brought before the Court to assist the judges in their deliberations.

Answer 26

* European Court of justice; making sure that member states adhere to the laws * The European Economic and Social Committee (EESC): * Involve representatives of civil society in the creation of the common market. 353 members from employers, workers and groups representing professional and community associations, youth organizations, women’s groups etc. * The Committee of the Regions * The European Central Bank (ECB) * Focus on the EURO and price stability * Major role in the banking union as supervisor or systematic banks (Single Supervision Mechanism (SSM)). * The Court of Auditors * Ensures that spending takes place in line with the Union’s budgetary rules and for the purposes for which it was intended. * The European Investment Bank (EIB) * Provides long-term loans for capital investment to promote EU development, integration etc. * The European Investment Fund (EIF) * Ombudsman

Answer 27

Article 50: when you want to leave the EU, you have 2 years to negotiate some agreement with the EU. If you don’t come to an agreement you are OUT as in only having the same rights or links to EU as any other country in WTO.

Answer 28

* **UK:** * Internal market access * Leading financial center (capital) - they will most likely lose this position * FDI in UK (services) ⇒ UK headquarter hub (will move to Germany, France etc.) * 50-70 % of business related laws/regulations are made in the EU * **EU:** * Losing UK is already a HUGE backlash to the EU. The mission failed so to speak. * UK is one of the biggest markets

Answer 29

* Mobility of goods * Mobility of services (EX+IM of services + freedom for FDI) * Mobility of capital * Mobility of labor (migration, business travel, exchange of students) * Mobility of data, ideas and information (digitization of goods and services + data and communication flows)

Answer 30

* EU commission: Ireland only gave state-aid to Apple. If they gave the same rights to ALL companies it would be okay * Apple: “acted in good faith” + has been going on since 1991. Of course mad as they are asked to pay back 30 billion euros. * Ireland: sets the Irish government in a bad lighting, * US: EU is according to US targeting only American companies

Answer 31

Monetary Union since 1998 with the Euro as a single currency. 19 of 28 current EU countries adopted the euro.

Answer 32

* Monetary Union (9/10 now) * Banking and financial union (6/10 now) * Fiscal Union (3/10 now)

Answer 33

Monetary union: ECB sets policy, monetary and exchange rate policy focused on price stability and growth * _Working quite well (9/10)_

Answer 34

Financial supervision, policy set for euro-area as a whole, objective is stability of the European financial system * A distinguished systemic banks (large such as Deutsche Bank, Nordea, Raiffeisenbank etc.) and non-systemic banks (small banks supervised by national central banks) has been made * The banks supervised by ECB (the systematic) works well * The banks supervised by national central banks under ECB guidelines often does not work as countries do not follow the guidelines in all cases * In Italy, the government wants to save their banks at the moment by government takeovers (due to the close link between national government and small national banks, issues have a hard time being solved quickly as if a French bank bought the small Italian banks - the ECB best practice is not enforced). * _6/10 - half of the way_

Answer 35

Enforces sustainable national government budgets * the 3 % yearly public deficit rule does not always apply to big countries in practice as the small countries can benefit from the higher spendings (first the commission has to accept a budget - if they don’t you can take it to the member states (where you need the majority to accept your budget) or make a new budget. * the budgets are based on cash-basis accounting = an investment in new highways fx. will ALL be accounted the same year * _3/10 not working yet_

Answer 36

* EC: right of initiative, voice of EU as a whole * European Parliament: Share legislative power with the council. The voice of EU citizens. * European Council: Shared legislative power with the parliament. The voice of state.

Answer 37

First a proposal by the European COMMISSION that has to be approved by both the European Parliament and the European Council: * First reading: amendments can be made by both EP and the EU Council (67 % of all proposals has been approved in the first reading since 1999) * Second reading: amendments can be made by both EP and the EU Council * ⇒ In case the proposal is NOT approved by both parties in the second reading, a conciliation process will start * Conciliation: members of the EP and EU Council meet to negotiate a compromise to set up a new proposal * The proposal can only be FULLY approved or FULLY disapproved, whereas parts can be approved and disapproved under the first and second reading. * 9 % have been concluded through conciliation since 1999.

Answer 38

* 1 President * 7 Vice presidents * 20 Commissioners One commissioner per member state, whereas each commissioner is responsible for a given area.

Answer 39

* The face of the EU - Foreign Trade policy * Proposes new laws * (to be approved by EP and EU Council) * Budget supervising of states and supervisor of parliament members * Implementation and enforcing * (the “police/law enforcer” of EU)

Answer 40

* Trade relations with global powers * Fx. TTIP on the moment * Foreign policy to meet ongoing crisis * Fx. ongoing migrant crisis at the moment * Expansion policy for new members * Talking to Kosovo, Serbia, Turkey at the moment

Answer 41

* Brexit * The growing issue of nationalism * Risk of Brexit being precedent for other EU members such as DK. * Article 50 - 2-year negotiation process * Refugee crisis migration agenda * Clear asylum policies * “Youth Wing” with 100,000 strong youth-corps * Europe 2020 Growth Strategy * Overcome the financial crisis of 2008 * Smart, sustainable and inclusive growth

Answer 42

* 751 members * 8 different groups of parties

Answer 43

* Legislate * Can reject proposals by the EC and approved by the EU Council * Supervise * Elects commission president (since Amsterdam 1999) * Question and review reports on commissioners * The president of the Parliament can speak before all council meetings * Budget * Amendment and final approval of the EU's long-term and annual budget Previously just advising but has grown to be a more powerful entity over time.

Answer 44

* First direct election for the EP in 1979 * Treaty of Amsterdam in 1999 ⇒ Got equal say in the codecision process. Appointing members of the commission. * Treaty of Lisbon 2007 ⇒ Extended budgetary capabilities

Answer 45

* Declining voter-turn at European elections from 62 % in 1979 to 43 % in 2014 * The positive image of EU has declined radically to only represent 30 % of EU-population * Scepticism appears to be growing in all countries including traditionally supportive countries

Answer 46

* Belgium: 89 %, Luxembourg 85 %, * DK 56 %, Germany 48 %, Greece 59 % * Czech Republic 18 %, Slovakia 13 %, Poland 24 % (post-communist countries but are they really against the EU?)

Answer 47

1. 44 % of the population in post-communist countries have a positive attitude towards the EU which is higher than 37 % average in other member states 2. Voter turnout for national elections is also very low 3. 50 % are satisfied with the EU compared to an average 44 % in the EU 4. The post-communist countries that have had most EU elections (those becoming members in 2004), has only had 3 elections and is therefore not used to casting a ballot. 5. Lack of strong political party identification reduces the voter turnout as EU citizens, in general, don’t vote for the MEP as a person but more for the party they are a member of.

Answer 48

Split into two: * The European Council( The prime ministers of the 28 EU member states) * Instruct the council of the EU * Nominate people for the European commission * The council of the EU (ministers of EU states that form “expert” groups within their field * Take part in the codecision making with the European Parliament after proposals by the European Commission

Answer 49

* EU and globalization: focus on introducing trade and business policies to protect EU states * TTIP * Euro commitment * Migration throttle * mass migration from Middle East due to ISIS * Heavy strain on social and economic systems * Unity and collaboration * Disparity from Brexit * National elections in France and Germany

Answer 50

* Basel 3 * Voluntary * Capital requirement, liquidity, leverage ratio * Aim is to strengthen banking industry’s resilience * Dodd-Frank (US) and MIFID 2 (Europe)

Answer 51

* 1973: Recognition of “National treatment” principle * 1977 First banking directive - home country regulatory responsibility * 1989: Second banking directive - mutual recognition of member state authorization * 1999: European System of Central Banks (ESCB) * Article 105 * 1999: Financial services action plan * 2002: Lamfalussy process * 2009-xxxx: Common rules (Single rulebook) + Banking union discussed * Stricter rules regarding liquidity; holding more cash * Sustainable portfolios reducing risk * Higher protection of savers of up to 100,000 euros * 2014: Single Supervision Mechanism * 2016: Single Resolution Mechanism * Future: European Deposit Insurance Scheme (EDIS)

Answer 52

Welfare-policies focused compensating people who have their jobs because of increased competition by providing job training, generous unemployment and pension benefits, and national healthcare insurance.

Answer 53

1. The common market making the European economies more and more dependent on each other such that supporting the EU has become more and more important 2. The European Court of Justice as it has made it clear that national governments were not going to be able to protect national firms by ignoring the treaty of Rome and European Law. It thereby encouraged member-state governments and their firms to increase their cooperative activity in Brussels and create more legislation. 3. Lobbying groups and the creation of policy fields in Brussels ⇒ EC relies on the expertise of member-state governments, consultants and the representatives of lobbying groups.

Answer 54

* _Negative integration_: this implies the elimination of barriers that restrict the movement of goods, services and factors of production. * _Positive integration_: this refers to the creation of a common sovereignty through the modification of existing institutions and the creation of new ones.

Answer 55

_Positive integration:_ this refers to the creation of a common sovereignty through the modification of existing institutions and the creation of new ones.

Answer 56

_Negative integration_: this implies the elimination of barriers that restrict the movement of goods, services and factors of production.

Answer 57

The common agricultural policy (CAP) that accounted for 70 % of the budget in 1992 and around 50 % in 2005. Still a big player though declining.

Answer 58

40 % of GDP on average. Higher for smaller countries. Over 70 % of exports from the countries that make up the EU are to other EU-members.

Answer 59

There are very few internationally owned big corporations. The big corporations are still typically fully British, German, French, Swedish or Italian. ⇒ This makes it hard to make agreements about property rights.

Answer 60

* Property rights: * Who has claims on the profits or firms, issues of the relationship between shareholders and employees, local communities, suppliers, and customers and the role of the state * Governance structure: * Competition, cooperations and definitions of how firms should be organized. Antitrust, anti-cartel, reduce barriers to entry and promote competition. * Rules of exchange: * Who can transact with whom and under which conditions. * Shipping, billing, insurance, the exchange of money (banks/financial market) * Health and safety standards ⇒ Product standardization * Conceptions of controls: * Reflect market-specific agreements between actors in firms on principles of internal organization (hierarchy), strategies regarding competition and cooperation. * The role of the state and its sovereignty

Answer 61

Not fully. There are no set of rules defining property rights and there are some differences in rules of exchange across states.

Answer 62

Around 40-50 %. 73,2 % of the trade of EU-countries is between EU-members - the most concentrated trade area (Asia 51 % and North America is 56 % - all numbers from 2003).

Answer 63

Cautious: Data from 1997. Nonetheless the data is old, this shows that UK is less dependent on EU than the other two superpowers within the EU ⇒ Explains the bigger skepticism in the UK (they are simply not as connected to the EU-market as most other countries.

Answer 64

* Defines who has the claim on the profits of firms * Issues of the relationship between shareholder and other stakeholders: employees/local communities/suppliers/customers * The role of the in investment and owning firms * A continuous battle/not the outcome an efficiency process EU is lacking this area. + USA is also lacking some rules in property rights.

Answer 65

* General rules that define relations of competition, cooperation and how firms should be organized * Two forms: * Law-based * Informal institutional practice * Some societies support corporation other enforce competition * Competition is regulated both within and across societies (anti-trust, anti-cartel etc.) * Tariffs and trade barriers to help national industry to compete

Answer 66

* Who can transact with whom and under which conditions? * Shipping, billing, insurance, * Health and safety standards, and product standardization/compatibility standards

Answer 67

The dominant worldview that makes it possible to interpret the actions of others in 4 levels: 1. The market specific relations between key actors in firms (hierarchy/structure) 2. The tactics for co-operations and competition (survival/strategy) 3. The relations of firm dominance in the sector 4. The perception of how a particular market should work Conceptions of control are historically (specific to a certain industry/society).

Answer 68

* Middle class’ real income was stagnating and they increased their debt to keep the same living standard * Both periods were characterized by an extreme inequality. Top 1 %. * Speculation: 1930s due to stocks and gold, 2008 due to property

Answer 69

* Provide key collective goods that markets won’t such as e_ducation, infrastructure, courts, basic scientific research_ * _Reduce pollution_ and other negative externalities * _Encourage shared knowledge_ (positive externalities) * _Regulate the market to protect consumers and investors_ * _Provide or require certain insurance protection in regards to health care, retirement etc._ * Soften the business cycle and _reduce the risk of financial crises_

Answer 70

Rich countries with small governments (despite some minor oil states). The visible hand (the government) is crucial for the invisible hand (the market) to work.

Answer 71

The visible hand (the government) is important to make the invisible hand (the free market) work properly. The US did great in the 20th century with a mixed economy that made the US the richest country the world had even seen with all layers of society getting better off in terms of wealth, education, health care etc. By diminishing the role of the government, US has led itself into a very tough economic situation once again with low growth, increasing frustration etc.

Answer 72

_Early liberalism (1850s-1880s)_: weak states, small public sector, conflicts internally in the state, liberal markets, SMEs, economic periphery = Germany, UK and USA as drivers. All big corporate founders had been abroad in their 20s to these countries to get inspiration.

Answer 73

Organized capitalism (1890s-1920s): More active states, organized labour markets cartelization and export. Everything got more organized.

Answer 74

_Welfare capitalism (1930s-1970s):_ Triangle of welfare states, organized labour and industries (mixed economies)

Answer 75

_Market-based capitalism (1980s-xxxx)_: Economic integration, strong state emphasis on markets capitalism.

Answer 76

A social construction Restrictive vs. competitive Private regulation vs. public regulation

Answer 77

People from less fortunate countries can take advantage of the social benefits in other countries. Fx. Romanians getting free education, SU etc. in Denmark and then afterward a minimum wage in UK etc.

Answer 78

To make sure that the transactions going on in EU, will be under a competitive and public regulated market. * State-aid: (the state will try to make “plan economy” by helping domestic corporations) * Anti-trust (companies will try to move down to the cartel economy)

Answer 79

That there is compensation around EU of people suffering from creating the common market.

Answer 80

There is no social tax integration ⇒ No tax integration in Europe. The different tax systems depend on the different government-systems: * Nordic * Continental * Southern ⇒ CULTURE

Answer 81

The United States of Europe; the 5 freedoms + everything is integrated. ALSO tax integration and social policy integration (welfare system) vs. Intergovernmental market integration; focused on free-trade-area.

Answer 82

* Middle class’ real income was stagnating and they increased their debt to keep the same living standard * Both periods were characterized by an extreme inequality. Top 1 %. * Speculation: 1930s due to stocks and gold, 2008 due to property

Answer 83

* Incremental: improving or combining existing technologies to something new (Facebook using the internet, Instagram using Facebook’s idea of photo-sharing) * Radical: completely new (the internet)

Answer 84

* Internet (WWW 1989) * Information technology * Big data * Artificial intelligence

Answer 85

* First machine age: Electrification (engines, telephones, electricity) * Second machine age: digitization

Answer 86

* More choice, greater variety, and higher quality in many areas of our lives

Answer 87

Bounty: everybody is getting better off all the time But… We see a larger economic spread = inequality.

Answer 88

About ¼ of the decline in America’s factory-industry can be allocated to outsourcing to China and other third-world countries. That being said, however, China’s factory-industry has also declined in size looking at the number of workers employed ⇒ Automation is causing the primary decrease.

Answer 89

* The basic income principle (giving everyone a lump-sum so they can act as consumers and have a minimum living standard) * Probably a bad idea anyway, due to the Three Great Evils and the importance of working * The negative income tax (Milton Friedman’s idea of 1968) * If you earn less than a given number X, the government will subsidize you instead of taxing you. * This also helps avoid the black labor market * Artificial artificial intelligence * Humans working cooperative with computers

Answer 90

Boredom, vice and need. The basic income principle will only take care of the “need”. ⇒ Related to the 3 motivations from Drive: Mastery, Autonomy, and purpose

Answer 91

* Create a national mutual fund distributing the ownership of capital widely * Use regulation, grants, taxes etc. to incentivize technical change toward machines that augment human ability rather than substitute for it * Pay people via NGOs etc. to do “socially beneficial” tasks * Start a “made by humans” labeling movement (just as organic and fairtrade) * Provide vouchers for basic necessities such as food, clothing, and housing to eliminate extreme poverty and let the market manage income above that level.

Answer 92

* Always been extremely international * Large corporation (skyscraper) during the 20th century

Answer 93

15 years from started in 1897-1912; grew to 5,000 employees. Why? * Not build upon creating wealth but build upon the challenge of making Copenhagen important for international trade (the vision) * Got funding from the market (the community as owners - the same way Elon Musk funds his companies. Including the community to make big ideas come true) ⇒ Funded by Glückstadt (the former CEO of Landmandsbanken ⇒ Danske Bank). * About to go bankrupt due to lack of corporate governance ⇒ War between Russia and Japan created a demand for transportation/supplies by the Russian military, which got the company back running (coincidence here) + hired an experienced board of directors

Answer 94

Was the largest company in Scandinavia but disappeared In 15 years between 1977 and 1992. Why? * Paradox: “the more globalization and trade in the world, the smaller Østasiatisk Kompagni became” * The main competence was being able to beat the market and selling knowledge about distance markets. To do this on behalf of others, barriers to trade is benefitting you. As barriers decreased, it was possible for other businesses to navigate international trade themselves * The most diversified company (took part in shipping, services, industry, motorbikes in SEA etc. ⇒ all over the world during everything. They diversified to limit risk but as competition grew they got outcompeted due to the limited focus on each business area (lack of key competence) * External funding but kept internal control ⇒ In 1992 on 9/11, the investors claimed to become part of the board of directors.

Answer 95

There haven’t been any since the mid 1990s.

Answer 96

* Increased affordability and accessibility of existing technologies * Supermarket checkout systems, traditional robotics (production and assembling lines), cleaning robots, accounting software * New disruptive technologies * 3D-printing, AI, self-driving cars, robots, drones, autonomous cargo trucks

Answer 97

* Exponential growth of technologies. * Will transform the world and the economy. * Up to 47 % are in the high-risk category of losing their jobs.

Answer 98

We have seen it all before - automated jobs for the last 40 years. We should not worry too much but we, of course, have to adapt our societies to the changes and keep all business sectors aligned with the new technologies.

Answer 99

Total workforce is 2,7 million but 1,1 million can be automated (37 %) (number is higher in US due to bigger service-sector)

Answer 100

* _Post-graduation uncertainty_ (uncertainty about future knowledge-demand (NEG) * _Displacement_: risk of losing current job if majority of tasks can be automated (NEG) * _Replacement_: alternative to displacement is redefining the job description and tasks (POS/NEG) * _Digital interactions_: physical points of contact in citizens’ everyday life will evolve from human interaction to digital touchpoints (POS/NEG)

Answer 101

* Disruption of traditional industries (POS/NEG) * New emerging industries (POS/NEG) * Localization of production: automation will enable localization of production, creating an upside in high-wage countries (POS)

Answer 102

* Potential labor resources that can be allocated to other sectors (POS) * Rising inequality (NEG) * Increasing qualification gap (NEG) * New regulatory challenges (new industries and markets without regulation require a quick response from the government's) (POS/NEG)

Answer 103

Incumbents are being attacked from all sides ⇒ Those we did not think of as competitors before is suddenly competitors. Fx: banking industry: (Source: CB Insights - unbundling of a bank)

Answer 104

* First: 1760-1840: railroads, steam engine * Second: 1880-1920: mass production; electricity and assembly line * Third: 1960-1990: semiconductors, mainframe computing (60s), personal computing (70/80s), internet (90s) * Fourth: digital revolution and transformation (now); smart and connected machines, gene sequencing, nanotechnology, renewables, quantum computing. Artificial intelligence

Answer 105

* Physical * Autonomous vehicles * 3D printing * Advanced robotics * New materials: renewables, self-healing, self-cleaning, * Digital * Internet of things * Big data * Artificial intelligence * Blockchain (bitcoin) * Platforms (supply and demand meets) * Biological * Genetic sequencing * Synthetic biology (writing DNA and customizing organisms)

Answer 106

Technology will increasingly enable citizens, providing a new way to voice their opinions, coordinate their efforts and possible circumvent government supervision. (the opposite might happen as well – new surveillance technologies can give rise to all-too-powerful public authorities).

Answer 107

Less security due to disruption. On-demand jobs + more flexible work hours.