YORK UNIVERSITY FACULTY OF LIBERAL ARTS & PROFESSIONAL STUDIES SCHOOL OF ADMINISTRATIVE STUDIES AP/ADMS 1010 3.

0 A BUSINESS IN THE CANADIAN CONTEXT FINAL EXAMINIATION WINTER 2010 April 10, 2010 7:00 10:00 p.m. ________________________________________________________________ WEIGHTING OF GRADES MID-TERM ASSIGNMENT PARTICIPATION FINAL EXAMINATION 60% SECTIONS M,N,O,P, Q, R,S,U,V,W 40% 35% 10% 55% SECTIONS T

TIME ALLOWED: THREE HOURS INSTRUCTIONS: 1. This is an OPEN BOOK FINAL EXAMINATION. Electric aids, including cell telephones, pagers, electric dictionaries, etc., are not permitted. 2. There are two Parts to this final examination. Answer the two questions in Part 1 and the two questions in Part 2 for a total of four questions in as much detail as possible. All questions are equally weighted. 3. Extensive use and visible reference to course theoretical content are expected and necessary for a satisfactory grade. 4. Number and answer each question separately. 5. When directly quoting from a source, cite the author(s) and page number(s). 6. Write only in pen.

PART A PROPOSED REGULATIONS TO MORTGAGES ANSWER QUESTIONS 1 AND 2 BONUS QUESTION 3 On February 16, 2010, amid a growing clamber from the banking sector for some sort of government action to prevent a bubble and dissuade Canadians from taking on too much debt, Canadas Finance Minister Flaherty unveiled three changes effective April 19, 2010 intended to help prepare borrowers for interest rate increases widely anticipated later this year. In particular, it was announced that effectively April 19, 2010, government backed mortgages will face three new restrictions: 1. All mortgage applicants for a five year fixed rate mortgage will have to qualify when calculating gross debt service and total debt service ratios. 2. The maximum refinancing level for a high ratio mortgage in Canada will be lowered from 95% to 90%. 3. The minimum down payment for a non-owner occupied property will increase from 5% to 20%. Critics of the Ministers actions have suggested that the restrictions will hurt the housing market and as a consequence harm Canadas economy. Others have suggested that there was no need for the government to act since the banks themselves could have taken the same actions on their own accord. QUESTION 1 (25 marks) Based on your knowledge of the characteristics of the Canadian economy and its competitiveness as outlined in the assigned articles in Tom Wessons Canada And The New World Economic Order (Third Edition) and your knowledge of the role of government in the Canadian economy, discuss whether this intervention is appropriate.(Do not apply A General Model of Government Intervention in answering this question.) (25 marks) QUESTION 2 (25 marks) A. Identify and explain the stakeholders who will be affected by these changes in the regulations to mortgages. (10 marks) B. With detailed explanations of principles, which one ideology best explains the proposed changes to mortgages? (15 marks) BONUS QUESTION 3: You can choose whether or not to answer the following bonus question. What is the primary responsibility of the Minister of Finance? (5 marks)

PART B SOLID WASTE MANAGEMENT IN TOROTNO ANSWER QUESTIONS 4 AND 5 QUESTION 4 During last summers municipal workers strike, there were discussions of privatization of many of the Citys services, including the management of household solid waste. With reference to the case study Solid Waste Management in Toronto and applying A General Model of Government Intervention, present one intervention that would demonstrate how the City of Toronto would benefit from privatization of household solid waste management. (Apply all five Quality Determinants to measure the effectiveness of your intervention.) (25 marks) Hint: Think about the Ontario governments reasons for Privatization of Highway 407. QUESTION 5 Based on the case study Solid Waste Management in Toronto and applying A General Model of Government Intervention, how can the City of Toronto Council encourage private sector entrepreneurs to be inventive in using recycled and composted solid waste for new products? By applying all five Quality Determinants, will your intervention be effective? (25 marks)