Intro to PE / capt origins Flashcards
what is capitalism?
capitalism is a socioeconomic system where private wealth is used in the distribution and production of goods
value is determined by the productive continuation of this process
when was the term capitalism first used?
in the early 19th century
who wrote ‘the wealth of nations’ and when was it published?
Adam Smith, 1776
what are the three key characteristics of capitalism?
Decentralisation
Commodification
Accumulation
How does capitalism impact the distribution of goods?
Capitalism relies on markets as mechanisms for the allocation and coordination of goods.
What is the significance of decentralization in capitalism?
Decentralization allows individuals and other collective actors to make relatively autonomous decisions, notably in terms of property rights.
What is commodification in the context of capitalism?
markets = mechanism for allocation and coordination.
Treats objects as commodities to be bought and sold.
What is accumulation in capitalism?
utilising resources for present investment in expectation of bigher future gains
What is the importance of understanding the origins of capitalism?
Understanding the origins of capitalism helps in comprehending modern economies, governance structures, and societal dynamics.
How does Marxist theory contribute to the understanding of capitalism’s origins?
Marxist theory provides a critical perspective, highlighting issues of exploitation, inequality, and class struggle in the emergence of capitalism.
Arguments for capitalism
promotion of innovation, efficiency, and individual freedom
Arguments against capitalism
exacerbation of inequality, exploitation of labor, and environmental degradation
Which dynasty expanded maritime trade during the period of 960-1279?
The Song dynasty expanded maritime trade, particularly in Southeast Asia, India, Arabia, and East Africa.
When did the shift away from sea trade occur, altering global power dynamics?
The shift away from sea trade occurred in the 1430s
What characterized the Age of Discovery in relation to capitalism?
The Age of Discovery in the 16th and 17th centuries expanded capitalist networks through exploration and colonization.
Which companies rose during the 17th and 18th centuries, marking a significant shift in capitalist enterprises?
Joint-stock companies such as the British East India Company and the Dutch United East India Company (VOC) rose during this period.
What territories did European powers control by the year 1500?
European powers controlled approximately 7% of the world’s territory by the year 1500.
What was the significance of the Dutch East India Company in the 17th century?
The Dutch East India Company was as large as 20 modern companies combined, indicating its immense economic power.
What percentage of the world’s territory was controlled by Europe by the year 1775?
Europe controlled approximately 35% of the world’s territory by the year 1775.
What impact did the expansion of capitalism have on wider society during the period of 1500-1900?
The expansion of capitalism during this period led to significant changes in production, governance, and colonization, shaping wider societal structures and interactions.
