Chapter 7 Flashcards
What motivated European countries to develop trade networks?
desire to get natural resources that were not available where they lived
International trade
interchange of raw materials and manufactured goods among distant groups of people.
Wh is the trading route from the Roman empire to China called?
The Silk Road
What did traders share besides goods on the silk road?
Knowledge, inventions, religious beliefs, artistic styles, languages and social customs.
What did the Chinese want from nomads?
camels and horses, in return the Chinese would give silk
Mercantilism
a system of government sponsored international business ventures designed to make European monarchs rich
What made mercantilism Eurocentric?
It benefited the europeans more than the colonies, from the 16th to 19th century
capitalism
an economic system for increasing individual wealth, requiring a relatively free market, open competition, profit motive, and at least some private ownership of the means of production.
Positive values of capitalism
competition, economic freedom, personal responsibility and consumerism.
Free market
a market in which government would regulate nothing and all businesses and property would be privately owned.
Why is canada a ‘relative’ free market
There is some degree of government ownership and control.
Who is Adam Smith?
A scottish philosopher and economist.He was a critic of mercantilism. He wanted a society of perfect liberty where economic grown would increase naturally and rapidly if entrepreneurs were free of government restrictions.
Entrepreneurs
People who take risks by launching business ventures.
How do entrepreneurs benefit society?
They reinvest their profits, imply people, donate to charity and they create a product that is of value to others.
Who supported capitalism?
Businessmen
exploitation
The use of a person or group for selfish purposes
What did Karl Marx believe?
He believed capitalism oppresses the ordinary workers who make the goods.
oppress
take advantage of
Communism
a planned economic system in which government owns all means of production and all people work for government-owned and government run enterprises. EX: russia, China and Cuba
Who is Deng Xiaoping
The leader of China for a decade or more who led his country to limited capitalism and consumerism in the 1980’s. I his view, communism didnt help China develop. He thought capitalism could do that. Since then it has become a major player in globalization because of opening its doors to investment and trade.
Positive results of China entering trade
- growing middles class, with disposable income that is larger than the US
- more prosperity for the majority living in rural area
- farmers have larger houses with a variety of styles that show their greater wealth and individualism
- farmers are buying their own tools and vehicles and are able to lease land for a longer time
- more choice about where to live, work and learn
Negative results of China entering trade
- reform and abolishment of state owned enterprise resulted in unemployment and demands for a social safety net
economic development has worked environmental degradation like the Three Gorges Project to dam the Yangtze River - other social problems have started like homelessness, social deviancy in youth, growing lack of ethical values
- more divorce
- one child policy created ‘little emperors and empresses who are selfish, unto-operative with the group and overweight
First industrial country
Britain
industrial revolution
The combination of social and economic changes brought about by the extensive use of machinery in production, especially in great Britain in the 18th and 19th century
