Introduction to IB chapter 2 Flashcards
Three pillars
Cognitive pillar - how we act when we’re alone (taken for granted values and beliefs)
Normative pillar - mechanisms through which norms influence individual and firm behavior (how ppl influence us)
Regulatory pillar - how we act when the police is around (coercive power of governments)
Institutional transition
fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect organizations as players
Non-market strategy
political and social activities aimed at influencing the rules set in their host countries
Lobbying
Making your views know to the decision maker with the aim to alter political processes
Economic system
Rules of the game on how a country is governed economically
Market economy
An economy that is characterized by the ‘invisible hand’ of market forces
Command economy
An economy in which all factors of production are government-owned and controlled
Liberal Market Economy (LME)
A system of coordination primarily through companies reacting to price signals in the market
Coordinated market economy (CME)
a system of coordinating through a variety of other means in addition to market signals
Varieties of capitalism
view suggesting that different market economies have different inherent logics of how markets and other mechanisms coordinate economic activity
Common law
legal tradition that is shaped by precedents and traditions from previous judicial decisions
Legal certainty
Clarity over the relevant rules applying to a particular situation
Civil law
legal tradition that uses comprehensive statues and codes as primary means to form legal judgments
Case law
Rules of law that have been created by precedents of cases in court
Property rights
legal rights to use an economic property (resource) and to derive income and benefits from it.
