MIDTERM 2 Flashcards
What is the rate of population increase formula
r=(birth rate-death rate) + (immigration-emigration)
What is globally the most important change in terms of rate
infant mortality rate
what is infant mortality rate
of death before the age of 1 or less per 1000
What is total fertility rate
number of children expected per mother
What is life expectancy and what happens with it from country to country, what is the current average
number of years someone is expected to live, it varies wildly from country to country, the current average is 70
What is RNI and where is it higher
Rate of Natural Increase (that is the birth rate-death rate), it is higher for “developing” countries
What is doubling time ? how is it calculated
the time for the population to double, the formulas is 70/growth rate
What are reasons for population increase
larger supply of food (for RNI) , transportation (for migrants)
What lays the foundation for population growth
economic growth
What usually causes death rate to decrease
health improvement
Why does the population increases (fundamentally)
because the death rate decreases
What is the FIRST stage of demographic transition, describe it
PRE-INDUSTRIAL :
- high birth rate
- high death rate
- long doubling time
- no society today (or at least that we know of)
What is the SECOND of demographic transition, describe it, what is its doubling time, give example
TRANSITIONAL:
- high birth rate (because no confidence children will survive)
- declining death rate
- doubling 20-30 years
- Kenya 2018
- Europe 1950s
What is the THIRD of demographic transition, describe it, what is its doubling time, give example
INDUSTRIAL:
- Declining birth rate
- Declining death rate
- Doubling time = 40-70 years
- Turkey 2018
- Brazil 2018
- Shri-Lanka
What is the FOURTH of demographic transition, describe it, what is its doubling time, give example
POST-INDUSTRIAL
- death rate below birth rate
- deficit
- will not double without immigration (infinite DT time)
- Germany 2018
What can we notice in the pyramid in the American population composition in terms of the civil war impact
There is a chunk of young males missing
Populations have ________, describe it
Momentum - tendency for growing populations to continue growing after a fertility decline because of their young age distribution
How does a country manage population growth ?
-Fertility rate is the main point, blocking migration doesn’t influence that much
Define Prenatal, its motivation and methods
-Desire to increase fertility rate
Why?
- children = assets for work on farm (for eg)
-security
-power
-social norms
-Methods ? … government policy (for political, cultural reasons) eg: Quebec prenatal policy, day-care, free mini-van
Define Antinatal , What is its Moto, What are the two different approaches
-Desire to decrease fertility rate
Moto:
- Later (delay), Longer (space), Fewer (less)
Methods:
- Coercive ( state says “no more than 1”, normative)
VS
-Voluntary (example: education)
Development process is endogenous to _______
birth rate
Which Antinatal method is the most effective
Voluntary
Rate of increase is decreased to reach ________
world population stationary
% of population in Asia and Africa
78 or 71 ???
Where will most of the new world population be located
developing countries
____/100 children added are in _______
90, developing countries
People move ____ freely than _____, why ?
move less , than capital
because policies, politics …
Immigration is growing by _____, why ?
50%
-more refugees, economical migrants (wanting a better life)
What are the two types of migration + describe them
Voluntary (war, moved without choice) and Involuntary (seeking new opportunities, higher income etc)
What are the two type of migration factors (+description), who coined them
- PUSH (political crisis, environmental, etc) and PULL ( better jobs, opportunities, condition)
- Ravenstein
In terms of economic opportunity, _____ differ _____
wages, widely
If the labor supply in Mexico decreases, the wages will ______
increase
If the labor supply in the USA increases, the wages will ______
decrease
In theory, wages should ______ between countries
converge
In practice, wages_______ but ______ and due to _______ in _______. This reality also comprises ____________
converge but not as much as in theory and due to progress in sending country.
Immigration Policies
What are the 4 migration pathways
- South to South (low income to low income)
- South to North (low income to high income)
- North to South ( high income to low income)
- North to North (high income to high income)
Who is migrating in South to North migration ? Why ?
-Youngs males, labor opportunities
Who is migration is South to South ? Why ?
-Very old, very young (?)
The flow of refugee is very _____ and happens mostly in the ________ pathway
small (5% of total migration), south to south
Drivers of North to South
- Economic opportunities
- Global companies
- Return Migration
- Student Migration
- Retirement Migration
Consequences of migration
- Employment in key sectors (some countries need migration + the productivity of an individual increase in a fluid economy )
- Taxes and Revenue (net gain of migrants by contribution to economy )
- Brain drain (best and brightest leave)
- Brain gain (by capital returns to family and inspiration)
Well-Being in South to North migration ________ but _______
-improves but loss in social status and emotional security
Well-Being in South to South migration _____
-does not improve, its a matter of survival
Well-Being in North to North migration _____
-improve
Money from migrant to home country = _______ and is ______
Remittance, is very important in size and effect, swamps foreign aid in family condition
What is Internal Migration ?
Flow within countries, example = rural to urban
What are drivers of internal migration ?
- PULL : high wages, better life
- PUSH : violence in country side
Which country has experience the greater human migration ? Which direction
China- interior to coast
Urbanization leads to …
- Dynamization, Creates cities
- Increase in income, wages and cost of living
- Return inland where prices are lower
______ also has a lot of internal migrants
India
________ is getting greater and more impactful than ________ (in terms of migration)
internal migration than international
Define “natural ressource”
useful resource coming from the environment (it is a economic, social and cultural construct)
What is the resource scarcity/substitution cycle
when resource is scarce (high price), R&D will try to find substitutes
what are the two types of resources
non-renewable- renewable
Define non-renewable ressources
Fixed stock, Measured by reserve, Private property , can be renewed by in more than a life time
Define the 3 types of reserves
- Estimated reserve (whole estimate)
- Proven reserve (profitable to extract at given price)
- Potential (would be available if price higher)
Define renewable ressources
Grow or Flow, cycle, state or common property, measure with replacement rate, aimed to extract below that rate
Issues with renewable resources
- ecosystems are not well-behaved
- not aware of long-term consequences of extraction
- Different/varying growth rate (ex: between different trees)
Define the “population bomb” view
growth will strip all resources from earth
Year of the oil crisis
1973
What is the club of Rome
scientist, industrials getting together to discuss the state of the world, first global conversation.
Ran simulations in terms of running out of resources
Origin of debate from concerns of resources
Coincides with oil crisis
Explain Malthusian view
From Thomas Malthus
“Population will increase exponentially while food supply will increase only arithmetically”
“Power of population is greater than the earth’s”
Very influential
Neo-Malthusian focuses on carrying capacity
Explain the Marxian view
Malthus is wrong- enough resources to go around- distribution is the issue
Technology transcends limits through innovation
We can change the carrying capacity (ex:trade)
solution = revolution
Explain the Ultimate Resource View”
Human ingenuity is the ultimate natural resource
Emphasis on technology and institutions (markets) to overcome problems
Population is the solution
solution = promoting markets
What are the 3 main cereals
RICE, WHEAT, MAIZE
we eat only ________% of what we could eat
0.005%
Depict importance of agriculture (5 factors)
- international trade
- income (very important in dev. countries)
- employment (direct = farming , indirect = irrigation)
- Livelihood
- Environment (water, green house gas, land use)
Trillions of dollars of international trade are invested in
agriculture
Agriculture employs _____ of the world population
1/3
______ of population depend of agriculture for their lively hoos
1/3
What are the 3 types of agriculture
- Substance (very rare nowadays)
- Cash Cropping (foot in both substance and selling), from peasant to specialized producers, able to bounce back)
- Industrial/commercial (large scale, intensive, very detrimental, capitalism)
What is the goal of agricultural innovations
Get as much out of land as possible, yields vary greatly
Geography of agriculture is guided by __________
the availability of relative factor endowment ( LLK)
What are the 2 strategies of agricultural innovation
Agricultural Intensification
Biological Innovation
What is agricultural intensification
increase in outputs by increase in input
Boserupian intensification = as population grows, farmers intensify cultivation
Turning Malthus around - POP creates FOOD
Explain Biological Innovation (2 forms)
- Green Revolution : 1960s, provide package to farmers (which requires fertilizer, insecticide, water control), doubled yields for farmers, various consequences (inequality, poor excluded)
- Biotech Revolution: GMOS, corn, soybean, changing through genes the ability to resist pest, weather …, increases productivity
The price of food is _______
declining because of increased productivity
Fossil fuels are the ______ of the economy
lifeblood
Energy and economic growth are _______
tightly linked
Recession matches ________
oil prices
Volatility is _______ for growth
not good
countries with extreme climate tend to
have high energy consumption (Iceland, Quatar, Kuwait)
In the global energy system, there are huge ________
conversion losses
What energy source led the way until WW2
coals
Why is oil so popular
high density fuel, easy to store, “safe” to transport, important in aviation and cosmetics
What are the challenge of natural gases
Transport
What happens to proven reserve of oil when price drops
they decrease
Largest consumer of coals is
China, domestic use because costly to transport , coals I the dirtiest most damaging source
No 1 producer of oil is_______ even if ______
USA - not abundant
Top 5 flow of oil (?)
- Russia- Western-Europe
- Saudi Arabia - South-East Asia
- Saudi Arabia - Japan
- Saudi Arabia- China
- Canada- USA
Explain OPEC
-Cartel created in 1960 to stabilize oil market
-12 countries today
-33 million barrel/day agreement
-Supplies 40% of the world’s oil
(US-Norway-Russia= not in opec)
Why does Saudi Arabia makes so much profit
Because it has the lowest production costs in the world (4-6$ a barrel, where selling price is 70$= 65$ dollar profit per barrel)
Why do countries try to reduce their reliance on oil
Because oil is a strategic weapon, it moves by ship and have to pass choke points (ex: Hormuz holds US daily quantity)
The enormous shift in demand for energy is linked to ________
Economic development
What are “non-conventual” oil and gas
Tight sand gas for example (harder to extract)
What practice led the US to be a leader in oil ?
Fracking
Because of the oil reliance concern, there is a lot of interest in ________
non-fossil fuel (hydro, biofuels, renewable, nuclear)
Which innovation could change our world ?
Fusion
Explain the great divergence in the industrial revolution
It allows for CERTAIN countries to gather wealth
What is the general time frame for Industrial revolution
1760 to WW1
Name the 5 things characterizing the industrial revolution
- Shift to large scale production (artisanal to factories)
- Technological innovations revolutionize production
- Development of new products
- Penetration of new markets
- Developpment of new institutional and organizational change (trade unions for eg)
Describe the First Wave of Industrial Revolution
- Occurred in Britain- Uk as the top lead manufacturing region
- 1760-1850
- 3 phases
What are the 3 phases of the first Wave of industrial revolution
I = early development 1760-1790
II = agglomeration processes 1790-1820
III=expansion of railway system 1820-1850
Describe the Second Wave of Industrial Revolution
- 1850-1870
- Industrialization spread to Continental Europe (Belgium, France,Germany)
- Technological transfer from Britain
- Coal is key
Describe the Third Wave of Industrial Revolution
- 1870-1914
- Industrialization spread to intermediate Europe (Italy, Spain, Scandinavia, East Europe, Russia) and North America
- Technological transitions and innovation
- Expansion bolstered by tech refinements that continues time space compression
The three waves of industrialization represent a ___________
the frontier expanding outward
What are the 5 factors allowing Britain to be the first leader
- Favourable Political Climate (end of monarchy, no foreign invasion, spared warfare, government policy allowing private profit and economic development 1707:political union with Scotland and England= formation of a single economic entity)
- Colonies allowing to accumulate wealth
- Favourable geography ( canals for example )
- Tradition of industrial employment (wage earning class)
- Conditions ripe to technological innovation
Define “Division of Labor”
Fragmentation of tasks in the production process into specialized functions
growing _________ on ________ leads to DOL
reliance of large scale manufacturing
What are the consequences of DOL
- Increase in productivity
- search for economies of scale (cost of production decreases as productivity increases)
- deskilling of workers
- lower wages
- control and discipline
What are some innovations that facilitated DOL
- Newcomen Steam Engine (1712)
- John Kay’s flying shuttle (1733)
- Hargeaves’ spinning Jenny (1764)
- Cartwrights power loom (1780)
What are some of the first industrial hubs during the first phase of the first wave
- Cornwall
- Shropshire
- Lancashire
- Yorkshire
- Tyneside
- Clydeside
The second phase (II) of the first wave is defined by the __________ and __________
- the consolidation of agglomeration processes in North and West of Britain (industrial complex thickens , growing pool of (capital, labor, commodity), development of supporting industries and banking systems)
- follow through innovations (cotton, iron making)
The third phase (III) of the first wave is defined by the __________
expansion of the railway system ( labor more accessible, labor market widened)
When is the apex of industrial revolution in Britain ? why?
1851- competitive advantage at its best
What is holding back the second wave of industrialization on the continent
wars (Napoleon Wars) and political fragmentation (ex Prussia)
Which regions were better suited than others for the technological transfers of the second wave
- SAMBRE-ET-MUSES (Belgium) - banking sector favouring coal field
- NORD-PAS-DE-CALAIS (France)
- RUHR-RHINE (Germany) - steel developed quickly
Regions Across Britain/Europe during the industrial revolution have 1.______ 2.________ 3._______
which implies ________
- distinct tech. traditions
- different forms of industrial organization
- significant institutional different
different patterns of divergence and convergence across regions
What are Kondratiev waves
40-60 years cycles of rise, flat, fall
What is regulation theory, when/where was it developed
Framework to describe and explain historical changes in macro-structures of capitalist economies. Developed in France in late 70s
What are the two lenses of RT
Regime Of Accumulation and Mode Of Social Regulation
Define ROA
a macroeconomic regularity, a common and temporarily coherent way of producing, distribution and enhancing commodities
(how firms organize, how workers organize)
example : Fordism and Post-Fordism
Transition from a ROA to another involves ________ , for example ________ were very important
ruptures - techn changes
Name the 6 characteristic of a ROA
- Certain set of production techniques (ex: assembly line in Fordism)
- Key industrial sectors
- How labor relations are organized (unions ? negotiations ?)
- Predominant form of competition (1000 small firms or Oligopoly ?)
- Distributional mechanism of profits (inequality ? where do profits go?)
- Specific Spatial from of expression (ex: agglomerations)
Define Mode of Social regulation
-Sociocultural and political counter of ROA ; it englobes law, labor, norms, traditions and habits. Set of norms, institutions and conventions that support the ROA
What are the 2 functions of MOSR
- Reflect the reproduction of relations
2. Regularizing the overall processes of economic reproduction, that is to provide stability
ROAs and MOSRs allow us to _________
investigate “varieties of capitalism”
Dates of Fordism
1920-1970
Who was the creator of Fordism and where was the first assembly line
Henry Ford- 1913, Highland Park
Fordism incorporates insights of _______
Taylorism
Define Taylorism (3 points)
- Seperation of management from production jobs
- Fragment of production, into controlled, deskilled, standardized tasks.
- Facilitates mass production and realization of economies of scale
Taylorism aims to reach the __________
Minimum Efficient Scale
Define Fordism (3 points)
- Mass production <=> Mass consumption
- Requires significant market base and some degree of cultural uniformity in terms of consumption (standardized goods)
- 5$ dollar a day program (getting consumers to buy by doubling their wages)
When was the golden era of fordism
1945-1968
The 6 factors that led the golden age of Fordism
- Rise of Keynesian economic planning (government regulation of economy)
- Suburbanization => mass consumption possibility
- Mature of mass production techniques
- Key industries= cars, heavy equip, steel, petrochemicals, electrical appliances
- New R&D in key sectors (aviation ..)
- Competition = oligopolistic (and domestic- pre globalization)
What is the MOSR of fordism , describe it
Keynesian Welfare
- capital and labor work together to float Fordist mass production through state intervention
- State regulate business, labor, finance and produces for physical infrastructure, education, health care.. etc
- Form of mass economic democracy, a social contract
Who usually benefits from Keynesian Welfare
White male workers
What is the geography of Fordism on a regional scale (US)
Manufacturing belt (Detroit, Boston, New-Jersey.. )
What is the geography of Fordism on a global scale
Fordism requires massive expansion of global trade and international invention- following world WW2 and rebuilding of Europe
What is the Marshall Plan, what does it signifies for US markets
- Investing in reconstruction, providing global infrastructure
- It provides a new market for US commodities + new resources search
In the age of Fordism, what does expansion of trade allows (2 factors)
- Us commodities to be absorbed overseas (new market for surplus)
- new globalized sources of cheap raw materials (eg oil ) for Fordist production
What defines Fordism’s international rules, in what year was it established
- Bretton Woods system
- in 1944
Describe the Bretton Woods system (4 factors)
- US$= world’s reserver currency (backed by gold)
- Fixed exchange rates between currency (peg national currency to US$)
- Regulated flows of capital across borders
- Creates stable financial sphere upon which world trade could proceed ( state based mosaic of financial spaces )
Explain the relation between Keynesian Welfare and Bretton Woods
Same kind of regulation philosophy
Fordism leads to a world _____ increase until _____
GDP - 1972-73
What phenomenon led to the undoing of fordism
Stagflation : combination of increasing inflation and stagnating output
The late 60s and early 70s are characterized by (4 factors)
- Rigid mass production systems precluding flexibility of design and presuppose stable consumer market
- Strikes and labor disruptions(due to unionized expectations) leading to increase in production cost
- Pressure on KWS entitlement programs, that is an increase in their cost
- Monetary inflation (because printing more money)
What are the international roots of crisis in the undoing of fordism
- Abrogation of Bretton Woods in 1971, Nixon pulls the plug because to many US$ are circulating (Cold War, Vietnam, multinationals etc) and there is not enough gold to support it all
- The 1973 oil crisis -> forces tech and organizational change
Post-Fordism signifies _______ (7)
- decreasing of large scale mfg activity in cars countries; firms relocate
- From economies of scale to economies of scope
- Surge in services/FIRE
- increased use of telecom tech to articulate production requirements across globe
- increased role of scientific high-tech knowledge
- Flexibilzation of work (growing part-time job, individualized contracts with employers, sweatshops)
- Highly competitive conditions (global competition)
What is FIRE
Finance
Insurance
Real Estate
white collar jobs
Define economy of scale and scope
Scale = increased level of production leads to decreased production cost - achieved when increased level of output (quantitative measure) Scope = Based of level of productive variety (qualitative) , increased cost advantages when producing two or more activities together
Define internal vs external economy of scale
- Internal= function of production within firm
- External = Function of individual producers sharing costs (technopark example)- outside a firm but within an industry
Define internal vs external economy of scope
- Internal= function of different tasks undertaken under one roof
- External= function of different producers in a given industrial complex
What are the key industries of post fordism
Telecoms, semi-conductors, biotech, medical devices, cultural industries (Hollywood)
(fordism to post-fordism) From ______ to ______ inventory and production methods, a shift from _________ to ___________
Just-in-case (JIC) to Just-in-Time (JIT)
Vertically integrated to Vertically disintegrated
What does JIT implies in post-fordism
It changes the production process: requires increased coordination, time precision and considerable flexibility for subcontractors and workers
Parts only used when needed
Need for fluidity -> team work efficiently replaces assembly line speed
Explain decentralization and centralization in post-fordism
- decentralization = activity relocation
in tension with - Centralization = clustering, close to part delivery- increasingly important because coordination between subcontractors and suppliers and untraded interdependencies
Depict post-fordism as a MOSR
Move away from KWS to workforce state, from state regulation to de-regulation, from collective bargaining to greater individualization.
Shift in societal values : from mass standardized consumption to yuppie or individualized cultures (want to be different, flux in demand)
What negative consequences of post fordism (3)
- increased labor market uncertainty (change in jobs)
- increased social polarization and inequality (no middle class)
- increased competition between individuals and regions (race to the bottom, trying to attract firms with tax, subsidies etc)
Not _________ of Fordism for Post-Fordism, rather, _______ of both
wholesale destruction
proliferation
Now, fordism is found in _____ and post-fordism in _____
peripheries - core
What does Regulation Theory offers now
a synoptic view of very complicated macrosystem
Name some examples of New Industrial Spaces
- Lyon
- Bangalore
- 3rd Italy
What the 3 component of the new industrial spaces
- Geography and Division of labor
- Transactions
- Growth Dynamics
The shift in world space economy created by _________- explain it + explain which shift it leads to
- window of locational opportunity = pressure on collective agreements (decreased demand in a world of unions and stickiness) leads firms to seek locations where collective agreements are not present
- Leads to shift from frost-belt to sun belt
The window of locational opportunity eventually closes but ______ (silicon valley example)
Sillicon valley’s growth did decline but remains a hot bed regardless of high rents. Firms are willing to pay to tap into the knowledge
What are the 2 geographical forces of new industrial spaces
- (Decentralization) Dispersion to suitable places (time space compression)
- (Centralization) agglomeration
What is the division of labor
Separation of tasks within the labor or production process and the allocation of these tasks to different workers
What are the two types of DOL- explain them
Technical = intra-firm, vertical integration, production precess broke down in different tasks, hierarchy of transactions
Social= Inter-firm, vertical dis-integration, different tasks to different independant firms , price mechanism determine transactions
What are upstream flow and downstream flows in the input-output system
- USF = closer to raw material
2. DSF= closer to consumer
Define roundaboutness
- measure of complexity in production (the higher the more complex).
- number of interconnected steps between the education of raw materials on which the economy is based and the production of final outputs
Name the 5 locational needs in the window of locational opportunity
- Pro-Business environment
- Tax incentives
- Lack of labor/union organizations
- Strong university linkages (r&d)
- Cheal land/rents
Forward linkage =
Backward linkage =
downstream flows
upstream flows
Average cost =
total cost/x
The goal of producers in terms of average cost is to reach
the minimum efficient scale (lowest point on AC curve)
When should a firm integrate ?
if f(x) + g(y) > h(x,y) (considering transaction costs)
Fordism focuses on economies of _____
Post-forfism focuses on economies of ______
- scale
- scope
Why integrate ( 3 factors)
- Managerial efficiency (oversee and coordinate production)
- Infrastructure savings and moral hazards ( oil infrastructure and intel protection of information)
- Technological interdependencies (feedback processes)
Why firms disintegrate (3 factors)
- Negative overspills
- Possible labour relation problems
- Uncertainty of markets (greater flexibility)
Positive relationship between vertical disintegration and _______
the proliferation of externalized transactional activity
more roundaboutness= more transactions
collaboration between competing firms in a cluster only possible if
dense agglomeration
Capital wants to ________ through input-output systems SO need to reduce ________- by __________
quickly circulate
transaction costs
clustering
What are codified and tacit knowledge
codified = easily transmitted tacit = less tangible, have to be there
Industrial complexes are
large assemblage of specialized and flexible producers interconnected via an intricate web of external transactions
what are the 3 forces of agglomeration
- Increase the efficiency of linkages between firms
- Pools of labor
- Existence of industrial atmosphere ( untraded interdependencies )
define untraded interdependencies
knowledge flows, can’t be valued in dollars
marshalls forces of agglomeration are … (5 points)
- Bolstered by industrial infrastructure (physical= airport, non-physical= trade union)
- Involve cumulative processes, feedback loop (more firms attract more firms )
- Lead to lock on certain developmental trajectories (path dependences)
- they reinforce competitiveness of industrial complexes
- they are not isolated, rather a mosaic of interconnected regional agglomeration
Positive relation between distance and _______ but possibility of _______
cost
bulk saving
Transaction characterized by
- physical content(weight, shape..)
- temporal and spatial variability (often ?)
- necessity for face to face contact
What the 4 Bosruptian ideas of agricultural intensification
- Shifting cultivation
- Bush Fallow
- Short-term fallow
- Permanent cultivation and multi-cropping
