Chapter 3 HISTORY OF GLOBAL MARKET INTEGRATION Flashcards
(23 cards)
-people learned how to domesticate plants and animals,
Farming helped societies
build surpluses, meaning, not everyone had to spend their time producing food.
Agricultural Revolution.
-e rise of industry came new economic tools, like steam
engines, manufacturing, and mass production.
INDUSTRIAL REVOLUTION (1800s)
popped
up and changed how work functioned.
Factories
True or False
In industial revolution productivity went up, standards of
living rose, and people had access to a wider variety of goods due
to mass production
True
The workers in the factories – who were mainly poor
women and children
As a result, 19th century industrialists were known as
– with more productivity came greater wealth, but
also greater economic inequality.
robber barons
In the late 19th century, what group began to form.
labor
unions
These organizations of workers sought
to improve wages and working conditions through collective
action, strikes, and negotiations.
labor unions
labor unions gave way for minimum wage laws,
reasonable working hours, and regulations to protect the
safety of workers.
Inspired by Marxist
principles,
is a system in which all natural resources
and means of production are privately owned. It
emphasizes profit maximization and competition as the
main drivers of efficiency. (private ownership)
Capitalism
Who is This is what economist in the 1770s called the “invisible hand”
Adam Smith
The idea is that if one leaves a capitalist economy alone, consumers
will regulate things themselves by selecting goods and services that provide
best value.
Invisible hand
– the means of production are under collective ownership. It
rejects capitalism’s private property and hands-off approaches. Instead, in
socialism, property is owned by the government and allocated to all citizens,
not only those with money to afford it. Thus, the government plays an even
larger role in socialism. (public or government ownership)
SOCIALISM
This is marx hope for In practice, this has not played out in countries that have
modeled their economies on socialism, like Cuba, North Korea,
China, and the USSR. Why?
Marx hoped that as economic differences vanished in
communist society, the government would simply wither and
disappear, but that never happened. If anything, the opposite did
has reduced the
role of human labor and shifted it from a manufacturing-based economy to one that
is based on service work and the production of ideas rather than goods.
INFORMATION REVOLUTIOnTechnology
But today, much of
their economy is centered on the
tertiary sector or the service industry
includes jobs that provide many benefits to workers,
like high incomes, job security, health insurance, and retirement packages. These are
white-collar professions, like doctors, accountants, and engineers.
PRIMARY LABOR MARKET
include jobs that provides fewer benefits and
include lower-skilled jobs and lower-skilled jobs and lower-level service sector jobs.
They tend to pay less, have more unpredictable schedules, and typically do not offer
benefits like health insurance and tend to have less job security. This sector are
sometimes called as blue collar jobs
SECONDARY LABOR MARKET
are defined as organizations that exist as legal entities and
have liabilities that are separate from its members. They are their own thing.
Corporations
All are
dependent to some degree on international trade for their own prosperity.
Companies can produce their goods and services across many different
countries.
GLOBAL
CORPORATIONS
they can be identified as either
multinational or transnational corporations (MNCs or
TNCs)
do not have coordinated product offerings
in each country. adapting their products and services to each
individual local market. Basically, they are just national companies that have
subsidiaries.
It’s like their original products from home country are brought to introduced to other
cultures.
MULTINATIONAL CORPORATIONS (MNCs)
a central corporate facility but give
decision making, research and development (R&D) and marketing powers to each
individual foreign markets.
TRANSNATIONAL CORPORATIONS (TNCs)
