lec 17 & 18 - Changing organization of economies

Question 1

Key element of Taylorism

Answer 1

Division of Labor

-mass production, economies of scale

Question 2

Through which 3 elements did the Bretton Woods compact (signed 1944) bolster Fordism internationally?

Answer 2

1 - US $ = world reserve currency (gold standard)
2 - fixed exchange rates between currency
3 - regulated flows of capital across borders

Question 3

What were the 60s & 70s characterized by during the undoing of Fordism? (4)

Answer 3

1- Rigid mass production systems
2- strikes & labor disruptions (increased production costs)
3- Pressure on KWS entitlement programs
4 - Inflation

Question 4

What was the most important economic event in 1973?

Answer 4

Oil crisis

Question 5

Name 4 key characteristics of Post-Fordism

Answer 5

1- economies of scale -> economies of scope
2- surge in services, decrease in mfg (transition blue -> white collar)
3- Move to lean production systems (Just in case -> just in time)
4 - competitive global conditions

Recall: post-fordism is characterized by globalization!

Question 6

4 consequences of Post-Fordism

Answer 6

1 - Vertical disintegration of firms
2- geographic decentralization (globally, but also agglomeration at local scale)
3- shift in societal values: mass consumption to individualized culture
4 - increased labor market uncertainty (bringing inequality & polarization)