Exam 1 Flashcards
(76 cards)
define capitalism; most importantly, know the KEY element of that definition that makes capitalism unique
The economic, social, political, and geographic system characterized by the private ownership of the economic means of production (resources, inputs, tools, and capital necessary to produce goods and services).
Characterized by the PRIVATE OWNERSHIP of the economic means of production
The fundamental institution in capitalism
The Market is the fundamental instrument of capitalism- where buyers and sellers interact through supply and demand on the basis of price.
the guiding force in the capitalist market
Profit - the difference between revenue and cost.
who are the “survivors” in a competitive market economy
In a competitive capitalist economy, the most efficient producers are the survivors
distinguish between the definitions of gross domestic product (GDP) and gross national product (GNP)
GDP is the sum of the value of goods and services produced in a given country in one year (GNP, or gross national product, includes the value of activities of domestic companies in other countries as well). (i.e. McDonald’s)
What figure is often used as the key measure in determining standard of living around the globe; know how this figure is calculated.
Per capita GDP: GDP/population, often used as a measure of “quality of life” or standard of living.
define laissez-faire capitalism
Free market with no government intervention, but it has never really existed
Be able to explain the concept of relative distance and how globalization is impacting it presently
the time it takes for us to interact over longer distance. The principal influence on globalization of culture is telecommunication. Borders are becoming less important, especially in trade. Globalization is decreasing the relative distance
Be able to broadly define which groups of countries were classified as First World, Second World, and Third World countries in that international economic order
First World was FVEY, Japan, S Korea, Western Europe. Second World were communists in Eastern Europe, the Third World was every country that didn’t pick a side, now it’s developing countries, and 4th world was just poorest of the poor.
Core
The First World, the leaders, they influence those in the periphery, economic growth and strength; a leader, influencing other economies
Periphery
Third World, weaker, dependent on decisions made elsewhere
dominant world power in 1800s
The British Empire
Know which national culture has been the dominant one in the globalization of culture (meaning which culture’s aspects and products are most represented in that process)
US has been the dominant economic power since WWII. US Shaped post WWII economy by creating institutions like the world bank. But has been eroding, in the 70s it was W Germany and Japan, and Post Cold War Era China
how telecommunications access often coincides with manifestations of wealth
Telecommunication is the principle actor that drives globalization of culture. It has enhanced this diffusion to spread quickly and widely. Technology and infrastructure that allow this to spread are manifestations of wealth. Disproportionate access creates disproportionate wealth. Wealth can be important for access but restrictions can be put in place for political control
define transnational corporation and explain the role they play in the globalization of the economy
TNCs. Drive globalization of the economy. They are For Profit Businesses. HQs located in Core countries, and conduct activities located in a number of different countries. TNCs operate where it’s more attractive to do so.
the general category of countries in which transnational corporations are headquartered
Core
explain the general purpose of development
to improve people’s standard of living or “quality of life”.
Explain the two critical issues that must be considered when studying development
1) Environmental Constraints- massive consumption & waste by Core, Being destroyed by periphery to survive
2) Disparities of wealth and well being- gap b/w wealthy and poor is increasing with both countries and individuals. Poverty is not restricted to the periphery, there are impoverished individuals in the core, just fewer.
Know the general lifestyle human beings have lived for about 95% of our existence on Earth
Hunter-gatherer
Know which organization was the dominant political/ideological institution in feudal Europe (BE SPECIFIC)
The Catholic Church
Know the name of the major trade route that brought innovations to feudal Europe from Arabia, India, and China
The Silk Road
Know the name of the disease that wiped out a quarter of Europe’s population in just 4 years in the mid-1300s
The bubonic Plague or “Black Death”
Know where capitalism in Europe is thought to have originated
Northern Italian city-states of Venice, Genoa, Pisa, and Florence and their trade with the Middle East.
Know the group that, having been the middle class in feudal Europe, became the ruling class under capitalism
The Merchant class in feudalism became the Bourgeoisie ruling class under capitalism
