Definitions Flashcards
Joint stock companies
A system where the capital of a company is divided into shares which can be bought and sold by shareholders meaning that the company is owned jointly by the company and the share holders. The shareholders are not responsible for the company’s debts.
The corporation (CBCA)
Canada Business Corporations Act says that a corporation is a legal entity that can be sued or sue, or hold property in their name.
A corporation provides a permanent structure.
A corporation is separate from their shareholders and separate from the owners and managers.
Legal personality
The “nexus of contracts”. The recognition of a corporation being a legal entity with the law giving corporations legal rights and duties of being a human. It separates the corporation from the people who own it, providing protection for the owners (debt).
Corporations can own things, sign contracts and get into trouble just like a person can.
Limited liability**
Shareholders are not liable for the obligations of the business entity. The shareholders are not responsible for providing any of their personal assets if the company declares bankruptcy.
Provides contracts between a firm and its creditors where the creditors are limited to making claims against assets that are held or “owned by” the firm itself
Corporate charter
A written grant by a country’s legislative power by which an institution (company, college or city) is created and its rights and privileges are defined. It also outlines the purpose, structure and basic rules for how the institution will operate.
Publicly traded corporations
A corporation that sells shares of their company to the public allowing for people to invest. (Ex. Apple, McDonald’s, Tesla)
If the company does well, the share prices go up and the investors make money.
If the company does poor, the share prices do down and investors lose money.
Privately held corporations
A corporation that does not sell their shares to the public. The company is owned by a small group of peoples like investors, founders or family members. (Ex. Chik fil a, IKEA)
These corporations get their money from private investors, banks or its own profits.
These corporations company has more control over it’s decisions
Industrial policy
A set of policy initiatives that seek to redirect productive resources in the economy for the purpose of enhancing productivity and increasing the total wealth generated by providing improved infrastructure, support for research and development and educational programs.
The National Policy
Introduced by John A. MacDonald in 1879. It was inherently a protectionist policy that sought to reduce imports from the United States and the United Kingdom to develop national industry and increase domestic production and independence by protective tariffs, building the Canadian Pacific Railway.
Canada beat America by a year in their antitrust/combines Act.
Comparative advantage
A rationale for free trade between nations. A country had a comparative advantage of any good it can produce with the smallest sacrifice or some alternative good(s) that has a lower opportunity cost than the rest of the trading world. (Ex. Things that can’t be outsourced. China producing apparel cheaper than Canada)
National champions
Large corporations that vital to the country’s economy and global competitiveness that are expected to strive to achieve profit but also to serve a socio economic function for the nation as well. (Ex. Basic industries, technology)
Interlocking directorates
When a corporation shares members of their board of directors with other companies board. This can be dome as a way to create networks and have control over the decisions in the specific economy. (Ex. Google and Apple shared board of directors)
Big Tech
Big tech companies comprise of 25%. The most dominant and largest technology companies in their sectors. (Ex. Google, Apple, Microsoft, Meta)
Intellectual monopoly capitalism
Big corporations make money by controlling ideas instead of physical goods. This exercises knowledge and value predation. Leading corporations plan corporate production systems integrated by different structures including GVCs and platforms. These capitalists plan and harvest from knowledge production processes.
Refers to the expansion of intellectual monopoly of property rights and the inclusion of knowledge. When an economic system is dominant, corporations gain excessive control over intellectual property which restricts competition.
Competition Act
Throughout Canada’s history competition law has been created to deal with anti competitive activities through criminal law. Competition law was a protectionist policy that was used in combines to control prices.
The first version was created in 1879 and was inherently protectionist. In 1889 the first Canadian antitrust statute was introduced and predated America’s antitrust law by a year. In 1910 the act included monopolies and mergers. By 1919 and 1935 legislations were created to regulate industry standards for competition.
Global oil dilemma
A economic, political, social and, environmental issue related to the production and exportation of oil and keeping a balance between cheap oil, economic stability and environmental security.
The supply and demand of oil: when the supply of oil is high the price drops which is bad for the oil producing country (making less money) and good for oil purchasing countries (lower prices).
When the supply of oil is low the prices increase which is good for the oil producing country (making more money) and bad for the oil purchasing countries (high prices)
High oil prices is bad for oil consuming countries because everything else becomes expensive.
Countries such as Saudi Arabia and Russia have the most oil and export it to countries such as Canada and the United States. Oil rich countries want higher prices, while oil dependent countries want low prices.
Oil is also about power in setting prices to keep prices high.
Oil production causes global warming.
Settler colonialism
A territorially acquisitive and ongoing process that takes away economic and political power away from the Indigenous community.
European settlers came to Canada and used violence to force the Indigenous Peoples off their land and used their natural resources for economic gain.
Petroculture
A culture that is dependant on oil. Oil shapes the political, social, cultural and economic life of the country of a petroleum exporting country.
Countries with lots of oil have lots of political and economic power (Saudi Arabia and Russia).
There is a large and persistent economic and political inequalities which foster demographic deficits.
Petro state
An oil rich country with weak political institutions and a concentration of wealth and power in the hands of a few. The leaders of oil producing countries may use the money to continue staying in power instead of helping the people. The economy of petrostates is heavily dependent on the extraction of oil.
OPEC (organization of the petroleum exporting countries)
An organization consisting of 12 countries with a statute that coordinates and unifies petroleum exporting policies to ensure the stability of oil markets to secure an efficient, economic and regular supply of petroleum.
If oil prices are too low, OPEC produces less oil making it rarer and more expensive.
If oil prices are too high, OPEC produces more oil, making it cheaper.
OPEC controls oil prices.
