Chapter 13 - Global Economy

Question 1

capitalism;

Answer 1

private ownership of the means of production, from which personal profits can be derived through market competition and without government intervention

Question 2

socialism;

Answer 2

public ownership of the means of production, the pursuit of collective goals, and centralized decision making, primary motivation is the collective good of all the citizens

Question 3

Name the 4 features of ideal capitalism

Answer 3

private ownership of the means of production, pursuit of personal profit, competition, and lack of government intervention

Question 4

mixed economy;

Answer 4

combines elements of a market economy and a command economy, considerable government involvement in rules, policies and objectives

Question 5

Out of pre, mid and post industrial societies, which have the highest level of inequality?

Answer 5

inequality is higher in post-industrial societies where people are stratified based on the type of job they have

Question 6

Why is Canada so dependent on the US for trade?

Answer 6

87% of our exports go there, 40% of our GDP comes from trade with them

Question 7

Name a few of the negative effects of so called free trade

Answer 7

free trade agreements have resulted in losses of jobs in Canada, decrease in unionization rates

Question 8

transnational corporation (TNC);

Answer 8

a large scale business organization that is headquartered in one country but operates in many countries, which has the legal power to enter into contracts, buy and sell property, and engage in other business activities

Question 9

multinational corporation (MNC);

Answer 9

a corporate operation that is integrated into its host country in order to better market its products in the local culture

Question 10

What are the ways TNCs turn their economic capital into power?

Answer 10

they determine what will be defined as news, which universities get funding, what technology will be developed and which political parties get funded

Question 11

Going into the recession in 2007, how many Canadians were living in poverty?

Answer 11

more than 3 million, 1 in 5 Canadians

Question 12

What percent of unemployed Canadians get help from EI?

Answer 12

approx 40%, almost 60% of the employed receive no help from EI

Question 13

deficit;

Answer 13

when a government’s spending exceeds its revenues in a given year

Question 14

What is the ratio of tax revenue contribution between Canadian citizens and businesses?

Answer 14

whereas in the 60s when citizens and businesses contributed to tax revenues 50-50, today citizens account for over 92% of tax revenues and business only 8%

Question 15

corporate welfare;

Answer 15

when the government helps industries and private companies in their economic pursuits, ex. public subsidies and protection from competition

Question 16

How does corporate welfare effect society?

Answer 16

around the world this doesn’t promote economic growth or influence location choices, but rather just decreases revenues available to support government spending, creates politically driven investments, is unfair, and undermines Canada’s faith in democracy

Question 17

What are the 4 functions of the government? Functionalist

Answer 17

maintains law and order, plans society and coordinates other institutions, meets social needs, and handles international relations (ex. warfare)

Question 18

corporate rich; Conflict

Answer 18

a ruling class, privileged people who wield power over political processes and serve capitalist interests

Question 19

power elite; Conflict

Answer 19

composed of business leaders, the executive branch of the federal government, and the top of the military

Question 20

elite model; Conflict

Answer 20

power in political systems is concentrated in the hands of a small group and the masses are relatively powerless, ex. public policy reflects the views of the elite, not everyday people

Question 21

pluralist model; Functionalist

Answer 21

power is widely dispersed throughout many competing interest groups within our government