Wealth Flashcards
(23 cards)
What is an economy
- Status of a country’s financial ($$$, pl, businesses, trades, taxes, exports, ressources)
=> set of connected production, consumption, distribution and trade
Goal of economy
Allowing people access to basic needs: maximizing efficiency of natural, human and capital resources
Factors that impact the economy
- Social Norms (cultural/religious and technological/inventions)
- Politics (Ideological Clashes and Corruption)
- Natural Events (Disease and Disasters)
- Conflict (Internal/Civil and External/International)
Types of Economy (+ examples)
- Free Market (little gov intervention=No taxes: Singapore and Hong Kong)
- Command (gov owns everything=total control: North Korea and Cuba)
- Mixed (mix elements=funded aspects: US, Canada)
- Traditional (Depends on agriculture, fishing, etc: Native)
Law of Supply and Demand
Demand exceeds supply, price rises
Supply exceeds demand, prise drops
= need to find balance (equilibrium price) avoid overstocks or shortages
How can a country make money?
- exports
- tourism
- import fees
- taxes
- business profits
- public investments
Business Productivity
The amount of ressources put into a business vs the output of the business
Regulating the exploitation of resources
- Adoption of Resource Use
- Preservation and Restoration Policies (standards for replenish & not exploit)
- Imposition of Sanctions (tax/law on use of something, penalty)
Factors that Limit Wealth Creation
- Resource Scarcity (Natural, Human - labour, Financial)
- Limited Infrastructure (Transportation & Communication)
- Inadequate Labour Force (Health, Education, Lack of Training)
- Limited Access (Energy sources not very accessible)
Economic Disparity Measured
- GDP (Gross Domestic Product): total value of goods and services produced (per capita=person)
- Gini Coefficient: Income distribution (0-1) lower = more evenly distributed
- HDI (Human Development Index): Quality of life (social & economic)
Causes of Economic Disparity
- Impact of Colonialism: wealth drained to colonial investments
- Lack of Investment & Foreign Debt: stops country from investing
- Population Growth: too many people to support, lower socio-ec class
- Disease: affect lower socio-ec class - health debt
- War: focuses on war investments (lose = money lost)
- Trade Inequities: trade benefits higher socio-ec class
- Lack of Local Control: bribery, police targeting specific, business controlling economy
- Leadership Issues: capitalism, priorities are different (corruption)
Addressing problem of wealth disparity
- New Fiscal Policies: adjusting gov spending & taxing
- Regulating work conditions: higher min. wage, better working conditions & more employed
- Ending economic colonialism: remove dependence on colonial power and taking $ from “colony”
- Reducing population growth: too many people
- Effective treatments for diseases
- Canceling foreign debts: allowing in-debt countries to prosper
- Giving local governments a greater voice: less corruption in small gov., more voices
- Re-examining Leadership: problematic fiscal policies (abuse of power)
Regional Org
- EU (European Union): 27 cntry, formed after WII; united front (currency & war)
- ASEAN (Asctn. South-East Asian Nations): 10 cntry, formed in 1967; collaboration, trade, support, stability
- USMCA (was NAFTA); free trade agreement
Global Org.
- G7: WII cntry; annually to dine solution to world problems
- WTO (Wrld Trd Org): 165 members; meet to discuss rules of trade
- World Bank: reduce poverty by lending $ to dev. countries
- IMF (Intr Monetary Fund): keep monetary system stable
Non-Gov Organizations (NGOs)
- OXFAM (21 NGOS within) in 1942
- Doctor without Borders: Humanitarian medical NGO
Intergovernmental Organizations (IGOs)
- UN (1945): general, secretariat, intrntl court of justice, security council, eco & social, trusteeship*
- Interpol: help police work together
- NATO (Eu + Can + US): agreement (war/threaten)
Dev Assistance (Pros & Cons)
Pros:
- Provides $ for crisis
- Reduce poverty
- Eradicates Diseases
- Increase Independence*
Cons:
- Corrput gov (use for own agenda)
- Undermines local business
- Creates debt (interest)
- “colonialism in disguise” = dependence
Reasons for Colonization
- Resource
- Power
- Culture Spread (Religion)
Economic Exploitation
Factors Leading to Decolonization
- Assertion of Identity: nationalist demand for autonomy (violent - revolution or peaceful)
- Education: more educated, increase demand for local control
- Control Resources: Reclaiming resources for local use
Aftermath of Colonization
- Ethnic Tensions: bad blood for favoured ethnic group (struggle collaboration)
- Political Void: Leadership gap
- Challenging Borders: Ethnic groups clash over borders
Neocolonization
A way for colonizers to maintain control, ensuring continuing dependence (economic, political, cultural or other pressures)
Colonized Mind
An internalized ethnic, linguistic or cultural inferiority complex imposed as a result of colonization
- superiority of colonizer (gaslighting)
Globalization (Definiton)
- Interdependence of countries ne their economies through cross-border trade of devices, goods, info, technology, etc
