Sample Questions for Midterm

Short answer answers can be in point form 1 in the

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Short Answer (answers can be in point form) 1. In the Case of INCO, the head offices moved from one city to another. Name those two cities. (2 marks)
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New York City to Toronto 2. What is “Dutch Disease”? (4 marks) This is the concept of the decline of a country’s manufacturing sector as it increases its exploitation of its natural resources. Increased revenues from natural resources strengthen a country’s currency value which in turn hurts manufacturing. Coined in 1977 by The Economist detailing what happened in the Netherlands after the discovery of natural gas deposits in 1959. The Theory of Comparative Advantage would seem to imply countries should focus their attention on their natural resources if that is what they are strongest in. The natural resource sector is very volatile however, so a country may not want to rely on it. Offset this decline by boosting the competitiveness of manufacturing. 3. What is the National Energy Program? List its main elements and the effects it had on the country (both economic and political). (8 marks) In 1979-80, there was a 160% increase in global oil prices. Inflation was high, as was unemployment in Eastern Canada The federal government, in an attempt to garner more of the economic benefits being generated by Alberta oil, introduced the National Energy Program. The main elements to this program were: Oil self-sufficiency Maintain oil supply A greater Canadian ownership of the oil industry Lower prices
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Increase revenues by raising taxes on oil and gas Encourage the use of alternative energy sources Under the BNA, natural resources falls under the domain of the provinces. Albertans felt that this was an intrusion into provincial affairs by the federal government. It was seen as a benefit for the eastern provinces at the expense of the west. This was brought in by Pierre Elliott Trudeau and the Liberal Party, who at that time did not hold a seat west of Manitoba. Was this a crass political move to shore up Liberal support in the east, or a sound public policy? During the years of the NEP, it has been estimated that Alberta lost between $50 billion and $100 billion. Housing prices in Alberta dropped almost 40% The bankruptcy rate in Alberta rose 150% Brian Mulroney successfully campaigned on ending the NEP and won the support of the West in the 1984 campaign The NEP further alienated the West from the Liberal Party and was a contributor to the rise of the Reform Party, forever altering Canadian electoral politics. Case Questions (Answers in essay format): Target's Canadian launch expected to spark price wars http://www.ctvnews.ca/canada/target-s-canadian-launch-expected-to-spark-price-wars- 1.1181765#ixzz2Mm8ipowI CTVNews.ca Staff Published Tuesday, Mar. 5, 2013
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The arrival of U.S. discount giant Target in Canadian markets will introduce some much- needed retail competition, providing shoppers with more opportunities to benefit from price wars, experts say.
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