1
Q
Symptoms of the resource Curse (6)
A
Resource wealth Slow growth High poverty Poor governance Weak states Revolutions & conflicts
2
Q
Econ symptoms of Resource Curse (4)
A
Boom (in resource sector) & Bust cycles
Deindustrialization
Inflation
Withering Agricultural sector
3
Q
The cause of the Resource Curse is due to the resources caracteristics wich are :
A
Non-renewable
Appropriable ( point-source )
Owned by state
Low porduction cost and High value
4
Q
3 causes of Income Volatility.
A
- Commodity price variation
- Rate of extraction
- Timing of Receipt ( variation in gov payments modes)
5
Q
The major consequence of Income Volatility is the Boom and Bust cycle, explain what it is :
A
Government borrow money for many projects (overaboundance) he started in the Boom but then has Debt in the Bust .
6
Q
Rent seeking (profit - cost) leads to _____, _____, _____, _____.
A
Corruption, Overconsumption ( you subsidies people to keep you position of power ), Underinvestment in other sectors than resouces, Taxation.
7
Q
What are the 4 economic causes of the Dutch Disease ?
A
- Boom( investment ) vs nonboom sector (underinvestment)
- Tradable vs nontradable
- Ressource allocation effect
- Spending effect
8
Q
Definitions of Ressource Allocation Effect and Spending Effect in the econ causes of the Dutch disease.
A
Ressource allocation : shifting of capital and labor into the boom sector ( oil & nontradable )
Spending effect : Because the currency has appreciated people are buying stuff from oversea because it is cheaper
9
Q
How differently does the Dutch Disease affects : 1. Industrialized countries 2.Developing countries
A
- Ind Countries have strong Legal System, strong Democracy and low corruption
- Devlping countries have higher corruption rate ofter dictatorship history and weak institutions. (ex: Nigeria )
10
Q
Norway escaped the Dutch Disease with a social agreement in the center of their strategy they are giving back to people the money they harvested form the resources wit
A
- sovereign wealth funds (invest elsewherein the
world)- High taxation of oil profits
- TRANSPARENT wage negotiations
- protection of manufacturing sector because of
their high money value they prefer to invest in
knowledge
11
Q
The main solutions to get out of dutch disease is (3)
A
- transparency & accountabilty 2. investment in other sector than the booming one (sovereign wealth funds)
- Direct distribution mechanisms
12
Q
3 causes of rising food prices
A
1- oil prices
2- weather events
3- trade shocks ( when prices rise panic that we’re running out )
13
Q
Spikes in food prices affect the production cost and the competition for land. What are the consequences of that ?
A
+ Greater policy attention
+ Food Riots/Revolts
+ Undernourishment & impovrishment
14
Q
What are the 3 drivers of food Demand ? Hints : a- About preferences b- From plant based to livestock c- Supermarkets
A
a)Population increase
b)Dietary transition
c)Change in food retailing
( how food is sold affect what type of food is sold )
ex: cheap food in USA changing the competition
15
Q
What being fat means in :
A) Developing countries
B) Industrialized countries
A
A) you are wealthy
B) you are unhealthy
16
Q
Sources of growth for food supply.
A
extensification ( new land )
input intensification
increase total factor of productivity ( input/output )
17
Q
Five big challenge for the food supply.
A
1) Crop yield and closing the yield gap
2) Climate change and crop yield
3) Dietary change
4) Food waste
5) World agricultural trade
18
Q
We are buying land since the colonisation but what is different now ? (4)
A
size and frequency
new actors ( China, Malaysia, India, UAE )
New crops ( biofuels )
Vertical Integration of agribuisness ( land has a strategic value )
19
Q
What are the drivers of the ruch to buy land ?
A
High food prices ( Striking in 2008 )
Competing land use ( because it becomes scarce)
Land is a god investment
20
Q
Why land is a good investment ?
A
a) It’s an edge point against inflation
b) Income and appreciation value ( huge range of prices in the world )
c) Price of land isn’t related with the volatility of the stock market.
21
Q
True of False People buy land for their agricultural value.
A
False It is primarly because it has the highestcapital growth
22
Q
Wich continent is a focus for large scale acquisition ? It is the fact for Canada.
A
Africa
23
Q
What can be a solution for the lack of information about the amount of land transaction ?
A
Transparency and the Land Matrix ( int’l land coalition that track land holding and verify what have been reported )
24
Q
True or False The aquisition of land is in majority for food production.
A
False only 34 % of land acquisition is for food prod
25
Who are the main actors in land acquisition ? (3)
Nationals (urban elite, diaspora )
Regional foreign investors
Global foreign investors
26
What are the 5major concerns of land acquisition ?
Food security ( displacing food crops )
Mechanized large scale agr. don't need a lot of labor
Locking out water
Big corporations buy the best land ( bad for smallholders )
Rich countries take land from poor vulnerable ( lack of governance ) contries.
27
What does large scale agriculture means in three points ?
Machinery use
Quick processing
Demanding production standards
28
What are the good concequence of becoming large scale agr. ?
Low labor input so good for places where there is a lack of labor
You have more market/political power
You have subsidies for farm technologies R&D
Easier access to credit and insurance
29
What can we do to reduce the land rush negative impacts ? (3)
Give a room to small farmers
Have a greater transparency in transactions ( ex : Blockchains )
Strenghtening land governance and better manage land investments
30
Why are we deforesting tropical forests ?
for new agricultural lands
31
Where tropical forest are deforested ?
North of South America
middle of Africa
South East Asia
32
What are the fourth kind of drivers of tropical deforestation ?
Proximate/ Underlying
| Environmental explanation/ Political economy
33
(5) Environmental explanation of tropical deforestation.
1) Population ( more ppl less forest )
2) Innapropriate techs
3) no clear propriety rights
4) incomplete markets ( do not include externalities environmental cost )
5) weak institutions ( need of policies )
34
Political economic explanations of tropical deforestation (6)
1- sociopolitical structure of society
2- distribution of wealth
3- opportunities for capital accumulation
4- role of the state (ex: military to democratic)
5- int'l context, connections of markets
6- rise of civil society ( NGOs put pressure on gov )
35
How does the deforestation in Brazil have changed with time ?
1960-80 ________ to 1990-2000 _________ .
```
Opening the amazon to Export oriented deforestation
importer to exporter of beef
economic problems( taking wealth form the amazon )
to major economic actor for soy and cattle
```
36
Is cattle the primarly reason of deforestation in Brazil ?
3/4 of deforestation is due to ranch cattle
| BUT soy field are pushing the cattle further into the woods so it is an underlying cause.
37
Deforestation rates of the Brazilian amazon are falling Why ?
Rise of civil society and democracy
Climate change mitigation
Depopulation of indigenous people (diseases)
38
We replant many trees but is it really a recovery for tropical forest ? YE/NOP
NOP we replant where it is dry ( not tropical )
| so the forest coming back are really different of those we are cutting down
39
Two Group of tropical forest people:
Amerindians and Folks ( metis )
40
What type of agriculture tropical forest ppl are doing ?
| Traditional agriculture and Forest Harvesting sold in markets
Cash cropping : specialized in a particular product and they sell for profits ( peasant )
41
What do we mean by : forest peasants are generalists ?
livelihood: pluriactivity everyone is doing a little bit of everything
42
How can we guess there is a high environmental diversity when we look at the forest peasant villages ?
We can guess by the different specialization of each distinct villages relative to their geography.
43
Do forest ppl have all equal access to land, labor and crop seeds ? YEP/NO
NO all of those inputs have limited or no market
Land depends on their heritage or the geography and the labor
Labor is accessible like a work web. It's cooperative and all about reciprocity
Crops Seeds are exchanged between households and tropical forest isn't an aboundant reservoir of it.
44
What is the pristine myth ?
the idea that nobody has ever touch a particular part of the forest because it is so big
But we have evidence of anthropogenic activities changing the forest with archeology in lanscape and black soil (terra preta soil )
45
Is the traditional forest use of forest ppl Sustainable ?
Not necessarly
yeah they use low inputs but it depends of the nature of the output
ex: charcoal made of wood
46
What does act as a safety net for the rain forest ppl ?
The Forest itself ( substenance, income smoothing )
| Mostly Fish when a weather event occurs ( because a lot of migration when floods )
47
Are environmental schokes bad for the poor ?
Of course disasters impact poorestpeople the moste but it is also an opportunity for change and restructuration to less inequalities
48
Prior to WW2 most trade agreement are _______.
Bilateral
49
in 1944 the first trade agreement is signed. It is called _______. It is there to reshape the postwar structure of World trade.
Bretton Woods
50
What are the objectives of the Bretton Woods.
Stabilize int'l financial situation
and
Rebuild war damaged economy by fixing an exchange rate (gold USA)
51
What institutions the Bretton Woods wants to establish.
Int'l Bank for reconstruction and development ( later the World Bank )
Int'l monetary funds ( never existed )
52
1947 : creation of GATT ( General Agreement on Trade and Tariffs )
It operates through rouds of negociations setting an agenda in terms of binding tariffs ( toward trade liberalisation )
What it its goal ?
to reduce trade barriers/ tariffs by acting collectively
53
With Gatt we pass from bilateral to ______ trade agreements.
Multilateral
54
Does GATT focus on developing countries ? Yea/ No
No it is more focused on Industrialized countries but include developing as a geopolitical strategy to spread Capitalism,
55
Provisional General Agreement on Trade and Tariffs (GATT) become the ______.
World Trade Organisation ( WTO )
56
What is new in WTO that wasn't in GATT ? (+5)
- Full-fledge ( À part entière ) int'l organization
- Rules on trade and services
- defined intellectual
- property rights (TRIPs)
- has a tribunal ( for affairs like unfair subsidies )
57
In what year the DOHA Round appears ?
2001
58
DOHA Round concern a major issue in int'l trade: the unfair competition in agricultural products.
What is the goal of DOHA Round ?
Reduce the government support (subsidies) of the agriculture sector.
59
Did DOHA Round successfully acheived its goal ?
| Ye/Na Give an exemple why.
No ex: Cancun 2003 Developed countries backtrack on their pledges ( promesses ) .
60
To liberalize trade, Regional Trade Agreements include ___________, ________ and _______.
Free Trade Area, Customs union and Commun markets
61
In Regional Trade agreement, Free trade Area (FTA) means that :
Tariffs free trade among member countries but those are still ableto make their own agreements with non-members
62
True of False : NAFTA is an exemple of FTA.
True NAFTA is the world's largest FTA guided by the principle of national treatment ( gov cannot discriminate on the basis of a firm's nationality.
63
What are the 3 major points included in NAFTA.
1) Elimination of tariffs by 1999/national treatment to foreign investments
2) Cultural Protection, trade restriction are GRANDFATHERED or have sunset clauses ( continue beyond their limit of time
3) Some good remain subject to non- tariffs trade restrictions
64
In Regional Trade agreement, what Customs union has more than Free Trade Area (FTA) ?
Member countriesagree to establish a common trade policy with the rest of the world.
65
MERCOSUR is part of ______ in the Regional Trade Agreement.
Customs union
66
What as Commun markets ( part of Regional Trade Agreements ) more than Customs union?
Commun markets also has free movement of labor and capital
67
What is the world's largest exemple of Commun market ?
European Union
68
What are the two latest Free Trade Agreement ?
CETA ( Comprehensive Economic and Trade Agreement ) FTA between CAN & EU (2004-2014)
and
TPP ( Trans Pacific Partnership ) world's largest FTA including 12 countries (2008)
69
What is the major problem we need to fix in Environmental Economy ?
How to put a value on natural resources.
70
In the conventional economic approach nature is considered a ________ so is ________ of the economic system.
In the conventional economic approach nature is considered a _commodity_ so is _exogenous_ of the economic system.
71
With the conventional economic approach how do we value Nature knowing that we consider it as a commodity ?
We value it through market exchange (demand/supply system)
72
What are the Global stock market for:
Agriculture (2)
Metals (1)
Energy (1)
Agriculture 1) Chicago Mercantile exchange (meat prices) 2) Dalian commodity exchange (include plastic)
Metals : 1) London Metal Exchange (steel, computers, automobiles)
Energy : 1) New-York Mercantile Exchange (oil & precious metals)
73
Trading at commodity exchange (markets) can be for ______ purchase or ______ deliveries at garanteed price. ( time )
Trading at commodity exchange (markets) can be for _immediate__ purchase or _future_ deliveries at garanteed price.
74
Conventional approch has a practical (good) aspect and 2 criticisms. What are those?
It is a good price setting mechanism (equilibrium)
But 1) anything that is not quantifiable isn't included
and 2)economy is seen as separated from the natural world (treating nature as an object )
75
There is two known/popular ways to make Nature Endogenous of the economic system. Name it.
Commodification of Nature
| commodification of environmental degradation
76
In Commodification of Nature, nature is considered a ______ of _____ . (provider/receiver) (outputs/inputs)
In Commodification of Nature, nature is considered a __provider_ of _inputs_.
77
In Commodification of Environmental Degradation, nature is seen as a _____ of ____. (receiver/provider) (inputs/outputs)
In Commodification of Environmental Degradation, nature is seen as a _receiver_ of _outputs_.
78
In commodification of Nature how do we value natural resources ?
Valuation is based on the use value of nature or its exchange value.
79
In Commodification of Environmental Degradation, How do we value the envr degreadation ? (2)
Valuation with
a) Markets trading emission credits ex: ( Kyoto, National (ERU), EU ( ETS) )
b)Growth of certification programs in resources industries. ( with the goal of showing eco-friendly nature of certain products )
80
What are the 5 factors that determine the history and geography of nature commodification?
1. Tech & science knowledge
2. Economic circumpstances (proven resources)
3. Location of raw material
4. Post extraction geography ( ex: where we protect diamonds )
5. Investments requirements (government)
81
What are the 4 different kind of ownership in Commodification of Nature ? Because if you value nature by its eschange value someone needs to own it first but who ?
1- Communal access ( Fisheries )
2- State Ownership and exploitation (shared benefits: Hydroquebec)
3- State Ownership but Private exploitation (corps pay fees)
4- Private ownership and exploitation (Farmers)
82
Stock Markets is where ______.
stocks ( shares ) are sold or bought.
83
True/False : Stock Markets need to have a Physical floor.
False it is more and more likely that stock markets only exists Virtually.
84
Why companies decides to sell parts of their ownership ? (3)
To be more Competitive. To raise Capital and to develop new R & D.
85
In Stock markets, when buyers of share want their cash back they ____ their shares.
sell. It is contrary to debt.
86
Until 1970 stock exchange are mostly oligo/monopolistic. Post 1970, with the globalization of the financial system Stock Exchanges are now Buisnesses. It has 3 concequences:
1____ 2_____3____
1__higher level of MultiNationalCorporations
2__It's Harder to Regulate
3__There is Higher Competiition between the stock exchanges
87
Stock Markets are open __/24H
24H
88
```
Top 10 of the world Stock Exchanges :
N___Y__
NA____
T____
E___N____
L____
H___K___
S____
T_____
SHE____
F____
```
```
NEW YORK (blue chips firms)
NASDAQ
TOKYO
EURONEXT
LONDON
HONGKONG
SHANGHAI
TORONTO
SHENZEN
FRANKFURT
```
89
The world's largest crisis happened in ____. The second biggest is in ____. (years)
The world's largest crisis happened in __1929__. The second biggest is in __ 2007-2009__.
90
The 2009 Financial crisis is called the ____.
Great Recession
91
The collapse of housing markets because of the house price bubble and the risky funds of mortgages is the major causal factor of the Great Recession. What are the 4 others ?
1) Increased debt burden/ diminishing savings
2) Deregulation of banks/ more risk taking
3) Growing imbalance in world trade
4) Commodity bubble ( increasing oil prices )
92
When can we call a financial crisis a Recession ?
When it has 2 consecutive quarters of negative GDP growth
93
Wich countries escaped the Great Recession ?
Syria (oil)
India
China
94
In the New Spacial Organisation of Post-Fordism what are the two Geographical Forces ? ____ with a greater concentration and ___ with a greater dispertion.
Local ( a) economic activity cluseter to benefit from agglomerationeconomies/Marshall b)localized industrial production complexes )
Global ( a) TNCs b) Financial flows c) Trade flows d) New institutions )
95
GLOCALIZATION describes ______ movement of ______ and _______.
GLOCALIZATION describes _dialectical_ movement of _globalization_ and _localizations__.
96
Recaling : we focus less on the nation state relations but on the connection between ____ .
big cities
97
In The Wolrd City hypothesis Hall introduced it in 1966 by saying that cities are the center of ___, _____, ____ and dissemination.
trade, political power, knowledge creation
98
In the World Cities Hypothesis Friedmann and Wolff added to Hall in 1982/1986 that we identify world cities based on what ?
their degree of enmeshment into the world econ activity.
99
MNC did inventories of the New World cities seen as command and control centers of the global economy. this Index is called :
GAWC
| Globalizaton And World Cities researsh network
100
GAWC use 4 corporate services that as the dispersion of production and the concentration of advanced producers services necessary to manage and organize the disperion fo key economic activities. Whare are those.
1) Accountancy services
2) Advertizing agencies
3) Banking/financial services
4) legal services
101
GAWC separate the ranking in three category.
1. Alpha World Cities
2. Beta World Cities ex : Toronto
3. Gamma Wolrd Cities ex : Montreal
102
Name the Alpha World cities (L,P,NY,T,C,F,HK,LA,M,S)
London, Paris, New-York, Tokyo, Chicago, Frankfurt, HongKong, Los-Angeles, Milan, Singapour.
GEOG 216 McNuggill
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