Political Economy
to stress that the political, economic, and legal systems of a country are interdependent; they interact with and influence each other, and in doing so, they effect the level of economic well-being
Political System
the system of government in a nation
Political System
can be assessed according to two dimension:
1) the degree to which they emphasize collectivism as opposed to individualism
2) the degree to which they are democratic or totalitarian
Collectivism
refer to a political system that stresses the primacy of collective goals over individual goals
Collectivism
Plato, the Republic
Socialists
Karl Marx
Socialists
few benefit at the expense of many where individual freedom are restricted
Communists
believed that socialism could be achieved only through violent revolution and totalitarian dictatorship
Social Democrats
committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship
Privatization
Parties sold state-owned enterprises to private investors
Individualism
Refers to a philosophy that an individual should have freedom in his or her economic
Individualism
Can be traced to Aristotle
Adam Smith
The Wealth of Nations
Democracy
Refers to a political system in which government is by the people, exercised either directly or through elected representatives
Totalitarianism
Form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
Representative Democracy
Most modern democratic states practice
Representative Democracy
In a ____ citizens periodically elect individuals who represent them, they form a government whose function is to make decisions on behalf of the electorate
Communist Totalitarianism
The most widespread,
Theocratic Totalitarianism
Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
Tribal Totalitarianism
Has arisen from time to time in African countries
Right-Wing Totalitarianism
Permits some individual economic freedom but restricts individual political freedom
Pseudo-Democracies
Many of the world's nations are neither pure democracies nor iron-clad totalitarian states
Market Economy
All productive activities are privately owned, as opposed to being owned by the state
Market Economy
If demand for a product exceeds, prices will rise, signaling producers to produce more
Command Economy
the government plans the goods and services that a country produces, the quantity in which they are produced and the prices at which they are sold
Mixed Economy
Certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning
Legal Systems
Refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained
Common Law
Based on tradition, precedent, and custom
Civil Law
Based on a detailed set of laws organized into codes
Theocratic Law
is one in which the law is based on religious teachings
Contract
A document that specifies the conditions under which an exchange is to occurand details the rights and obligations of the parties involved
Contract Law
the body of law that governs contract enforcement
United Nations Convention on Contracts for the International Sale of Goods (CISG)
establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business and different nations
Property Rights
refer to the legal right over the use to which a resource is put and over the use made of any income that may be derived from that resource
Private Action
refers to theft, piracy, blackmail, and the like by private individuals or groups
Public Action
To violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders
Foreign Corrupt Practices Act (FCPA)
following revelations that U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts
Intellectual Property
refers to property that is the product of intellectual activity, such as computer software, a screenplay, a music score, or the chemical formula for a new drug
Patent
Grants the inventor of a new product or process exclusive rights over intellectual property
Copyrights
Exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.
Trademarks
Designs and names, officially registered, by which merchants or manufacturers designate and differentiate their products
World Intellectual Property Organization
185 countries have signed international treaties designed to protect intellectual property
Paris Convention for the Protection of Industrial Property
oldest treaty - dates to 1883 signed by more than 170 countries
Product safety laws
set certain safety standards to which a product must adhere
Product Liability
involves holding a firm and its officers responsible when a product causes injury, death, or damage
Political Economy
to stress that the political, economic, and legal systems of a country are interdependent; they interact with and influence each other, and in doing so, they effect the level of economic well-being
Political System
the system of government in a nation
Political System
can be assessed according to two dimension:
1) the degree to which they emphasize collectivism as opposed to individualism
2) the degree to which they are democratic or totalitarian
Collectivism
refer to a political system that stresses the primacy of collective goals over individual goals
Collectivism
Plato, the Republic
Socialists
Karl Marx
Socialists
few benefit at the expense of many where individual freedom are restricted
Communists
believed that socialism could be achieved only through violent revolution and totalitarian dictatorship
Social Democrats
committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship
Privatization
Parties sold state-owned enterprises to private investors
Individualism
Refers to a philosophy that an individual should have freedom in his or her economic
Individualism
Can be traced to Aristotle
Adam Smith
The Wealth of Nations
Democracy
Refers to a political system in which government is by the people, exercised either directly or through elected representatives
Totalitarianism
Form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties
Representative Democracy
Most modern democratic states practice
Representative Democracy
In a ____ citizens periodically elect individuals who represent them, they form a government whose function is to make decisions on behalf of the electorate
Communist Totalitarianism
The most widespread,
Theocratic Totalitarianism
Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles
Tribal Totalitarianism
Has arisen from time to time in African countries
Right-Wing Totalitarianism
Permits some individual economic freedom but restricts individual political freedom
Pseudo-Democracies
Many of the world's nations are neither pure democracies nor iron-clad totalitarian states
Market Economy
All productive activities are privately owned, as opposed to being owned by the state
Market Economy
If demand for a product exceeds, prices will rise, signaling producers to produce more
Command Economy
the government plans the goods and services that a country produces, the quantity in which they are produced and the prices at which they are sold
Mixed Economy
Certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning
Legal Systems
Refers to the rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained
Common Law
Based on tradition, precedent, and custom
Civil Law
Based on a detailed set of laws organized into codes
Theocratic Law
is one in which the law is based on religious teachings
Contract
A document that specifies the conditions under which an exchange is to occurand details the rights and obligations of the parties involved
Contract Law
the body of law that governs contract enforcement
United Nations Convention on Contracts for the International Sale of Goods (CISG)
establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business and different nations
Property Rights
refer to the legal right over the use to which a resource is put and over the use made of any income that may be derived from that resource
Private Action
refers to theft, piracy, blackmail, and the like by private individuals or groups
Public Action
To violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders
Foreign Corrupt Practices Act (FCPA)
following revelations that U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts
Intellectual Property
refers to property that is the product of intellectual activity, such as computer software, a screenplay, a music score, or the chemical formula for a new drug
Patent
Grants the inventor of a new product or process exclusive rights over intellectual property
Copyrights
Exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.
Trademarks
Designs and names, officially registered, by which merchants or manufacturers designate and differentiate their products
World Intellectual Property Organization
185 countries have signed international treaties designed to protect intellectual property
Paris Convention for the Protection of Industrial Property
oldest treaty - dates to 1883 signed by more than 170 countries
Product safety laws
set certain safety standards to which a product must adhere
Product Liability
involves holding a firm and its officers responsible when a product causes injury, death, or damage