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Flashcards in Test on Friday May 13, 2016 Deck (40):
1

What happens to countries that were colonized? 2

The colony would lose their economic , political, and cultural independence

Were forced to adopt the ways of the colonizer – for better or worse

2

A geographer once said that the tertiary industries are at the same time the most and least important segments of Canada's economy. Explain that statement.

They are not important because without the levels of industry below it, the tertiary industry can't exist. On the contrary, without them, the primary industry can't support itself with the funds that the tertiary industries do, which drives the economy.

Countries with a low per capita income are in an early state of development; the main part of their national income is achieved through production in the primary sector. Countries in a more advanced state of development, with a medium national income, generate their income mostly in the secondary sector. In highly developed countries with a high income, the tertiary sector dominates the total output of the economy.

3

What happened after WW2 with the colonies? 2

After WW2 the world experienced a wave of de-colonization

Former colonies gained independence – there was an explosion of new countries

4

What is Free Trade?

Free trade is a government policy of eliminating Tariff and other rules that are designed to restrict trade.

5

What is Globalization? 3

Refers to the increased harmonization (or connectedness) of the world’s economy – a move to market economies

Possible because of advances in transportation and communication as well as our system of credit and currency

Countries are losing their economic independence – borders are disappearing in terms of trade

6

What is Tariff? 2

A tariff is a tax placed on an import.

When countries impose Tariffs, it can make it more costly to buy foreign goods.

7

What is protectionism? 2

Protectionism is a government policy of using tariffs and other rules that limit imports.

This is done to give a country's local industries an advantage over foreign competitors

8

What are the products called when Canada receives it from other countries?

Import

9

When was there an explosion of new countries? 4

After WW2

Former colonies gained independence – there was an explosion of new countries

Led to many conflicts as new countries experienced civil wars and other disputes

The era of imperialism was technically over, but many would argue that the current trading system is still unequal between developed and developing nations

10

What are the products called when Canada sends it to other countries?

Export

11

Who benefits from global free trade? 5

People with capital who can now invest in opportunities and expand their business (ex. own a coltan mine in Congo) – large “multi-nationals”

Manufacturers can have greater access to raw resources and cheap labour

Savings can be passed down to the consumer

Encourages MORE economic development and creates more jobs and access to new goods

Developing countries can attract foreign investment and get access to new markets

12

What is a TRADE SURPLUS?

Occurs when imports of a country are lower than its exports.

13

A country's Balance of Trade refers to the ratio of imports to exports. What are the two terms related to trade balance?

Trade Surplus

and

Trade Deficit

14

What is Fair Trade? Name a company that sells Fair Trade certifies products.

A movement whose goal is to help producers in developing countries to get a fair price for their products so as to reduce poverty, provide for the ethical treatment of workers and farmers, and promote environmentally sustainable practices.

Ben & Jerry’s Ice Cream

The first ice cream company to use Fair Trade ingredients, Ben & Jerry’s launched their Fair Trade foray with their coffee flavors in 2005. Ben & Jerry’s plans on being 100-percent Fair Trade sourced by 2013. As a major company in the public eye, Ben & Jerry’s movement into ethical sourcing paved the way for other businesses to follow suit. A few of their current Fair Trade ingredients include cocoa, vanilla beans, coffee and espresso beans and nuts.

15

List the top products that Canada imports. 4

Canada's top 4 NET IMPORTS are:

~High technology products

~Motor vehicle parts

~Goods produced only in warmer climates (Fruits, vegetables)

~Low cost goods (Precision instruments, Textiles, Clothes)

16

What are Canada's top Export partners? 5

The top export destinations of Canada are the United States ($331B), China ($18B), the United Kingdom ($10.6B), Japan ($10.2B) and Mexico ($7.81B).

17

What is a TRADE DEFICIT?

Occurs when imports of a country are higher than its exports.

18

Name a company that sells Fair Trade certifies products.


Ben & Jerry’s Ice Cream

The first ice cream company to use Fair Trade ingredients, Ben & Jerry’s launched their Fair Trade foray with their coffee flavors in 2005. Ben & Jerry’s plans on being 100-percent Fair Trade sourced by 2013. As a major company in the public eye, Ben & Jerry’s movement into ethical sourcing paved the way for other businesses to follow suit. A few of their current Fair Trade ingredients include cocoa, vanilla beans, coffee and espresso beans and nuts.

19

What are Canada's top Import partners? 5

The top import origins are the United States ($241B), China ($50.6B), Mexico ($24.5B), Germany ($13.5B) and Japan ($11.7B).

20

What are the top exports of Canada? 5

The top exports of Canada are Crude Petroleum ($87B),

Cars ($45.2B),

Petroleum Gas ($15.8B),

Refined Petroleum ($14.9B)

and Vehicle Parts ($11B),

21

What are the top imports of Canada? 5

Its top imports are Cars ($26.9B),

Crude Petroleum ($21B),

Vehicle Parts ($20.4B),

Refined Petroleum ($17.9B)

and Delivery Trucks ($12.7B).

22

Define SECONDARY INDUSTRY. Provide 3 examples

An industry that converts the raw materials provided by primary industry into commodities and products for the consumer; manufacturing industry.

Manufacturing,
Construction,
Utilities.

23

Define the multiplier effect.

An effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent. Like one job in the primary industry will lead to multiple jobs as the level of industry rise.

24

List one Advantage and one Disadvantage of Canada importing goods from other countries.

DISADVANTAGE
It can be tough for Local business to compete with massive giants like Wal-Mart that rely on cheap foreign labour to produce inexpensive goods.

ADVANTAGE
Importing grants access to regionally exclusive resources --- Some of the resources you may need for your manufacturing process can only be found in certain
parts of the world. This includes everything from raw materials to special technologies. If these ingredients are vital to your production process, importing grants you immediate access to primary sources.

25

Define PRIMARY INDUSTRY, Why is this sector called PRIMARY? List 5 examples of PRIMARY INDUSTRies

Industry that take raw materials from the natural environment.

This sector called PRIMARY because resources must first happen before anything can occur.

Forestry,
Agriculture,
Fishing,
Mining,
Oil and gas extraction

26

With the secondary sector, there are two types of manufacturing. Name them.

Primary

and

Secondary Manufacturing

27

Identify the area in Canada that has the most manufacturing plants and

explain why. 2

The area in Canada that has the most manufacturing plants is Ontario.

It is because it is close to people where a lot of people lives and near the US where trade is easily accessible.

28

Define QUARTENARY INDUSTRY. List 3 examples

The sector of industry that involves the intellectual services:

Research,
Development,
and Information.

29

At one time a large amount of Canada's labour force worked in the Primary industries, what has happened to change this?

Machinery replaced human labor for many tasks

30

Define INDUSTRY.

Economic activities that drive the economy such as extraction and refining of natural resources, (Primary industry), manufacturing, (Secondary industry), provison of services, (Tertiary industry) or intellectual services, (Quaternary industry).

31

Define TERTIARY INDUSTRY, List 5 examples

The Industry that provides services to its consumers.

Health,
Wholesale trade,
Social Services,
Business,
Finance,
Retail,
Entertainment,
Pest control,
Government,
Consulting,
Gambling,
Waste disposal,
Franchising,
Real estate

32

Explain the difference between PROTECTIONISM and FREE TRADE

Protectionism is a government policy that tries to protect its local business by placing tariffs on goods imported.

Free trade is a government policy to make trading easier by taking out tariffs and other rules that are designed to restrict trade.

33

What is the WTO?

The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. Its goal is to help producers of goods and services, exporters, and importers conduct their business.

34

Define Consumerism 3

Consumerism -- the consumption of goods and services in excess of one’s basic needs, usually in greater
and greater quantities

The protection or promotion of the interests of consumers.

Today we are in a cycle of working, watching TV ads that tell us we suck so we buy stuff. A Work Watch Buy Treadmill.



35

What is NAFTA? 4

The North American Free Trade Agreement (NAFTA) is a treaty entered into by the United States, Canada, and Mexico.

On that day, the three countries became the largest free market in the world

NAFTA was created to eliminate tariff barriers to agricultural, manufacturing, and services

Small businesses were among those that were expected to benefit the most from the lowering of trade barriers since it would make doing business in Mexico and Canada less expensive

36

What are advantages to Globalization? 5

Free trade reduces the barriers that once stood between nations trading freely with one another.

World economic growth

Rather than being able to export to just a few countries, exporters can now sell their goods to wholesalers and consumers in a large variety of counties.

Free trade also allows nations and economies to specialize, producing higher quality goods at better prices. If a country, for example, has large oil reserves but little land that’s suitable for farming, it can focus on oil production while importing fresh food from abroad.

Companies can hire workers in foreign countries to work for them using online tools and telecommunications.

37

What are disadvantages to Globalization? 5

Free trade forces all countries to compete using an even playing field, which critics claim puts smaller, less developed countries behind their more developed counterparts.

Multinational corporations, which were previously restricted to commercial activities, are increasingly influencing political decisions. Many think there is a threat of corporations ruling the world because they are gaining power, due to globalization.

Lost of culture

Large multi-national corporations have the ability to exploit tax havens in other countries to avoid paying taxes.

Multinational corporations are accused of social injustice, unfair working conditions (including slave labor wages, living and working conditions), as well as lack of concern for environment, mismanagement of natural resources, and ecological damage.

38

What are disadvantages of FAIR TRADE? 3

High cost

There is a limited customer base around the world -=-Because the fees are high and because workers earn competitive rates, Fair Trade products have a premium price associated with them when compared to “regular” products that fall outside of this type of market. The higher prices weigh on consumers who are living paycheck to paycheck, usually causing them to choose a cheaper product of similar quality.

Big buyers aren’t generally attracted to the Fair Trade model -=-The biggest buyers of products in the world today are looking at the overall cost of their inventory purchase. If factory farming and assembly line production can create goods that are of a similar quality for a price that is 20-30% lower, then the big buyers will purchase the cheaper product. This makes it difficult for Fair Trade suppliers to get a real foot in the door and ultimately that harms the environment as well because profitable practices instead of sustainable practices are implemented.

39

What are advantages to FAIR TRADE? 5

Improved quality of goods produced

Improves the lives of producers and their families, eventually their community

Helps developing countries grow faster

There is no slave, child slavery involved

We make an ethical choice when buying our products

40

What is balance of trade?

It is the difference in value between a country's imports and exports.