M3 L2 Flashcards
A social institution that organizes the production, distribution, and consumption of goods
Economic Institution
The resources that individuals, groups, organizations, and nations need to survive
Services
[Any establishment whose activities have a bearing on society], whether these institutions are business or not
Economic Institutions
[Refers to a network of commercial organizations] (such as manufacturers, producers, wholesalers, retailers, and buyers) who generate, distribute, and purchase goods and services
Economic Institutions
Ways Economic Institutions are formed
- Informally
(Repeated interactions between individuals or organizations that establish expected norms of behaviour) - Formally
(Through deliberate design from a private enterprise or civil society)
The [movement of resources] or goods from where they are found or produced to where they will be used
Distribution
[Transfer of goods] between individuals or groups
Exchange
The voluntary [giving or taking of objects without the use of money] in the hopes that, in the future, they could be given back
Reciprocity
Government transfer or transfer payments
Transfer
[Required payments] that could take form through the collection of taxes, social services, pensions, housing, and healthcare
Transfer
What plays a crucial role in ensuring that transfer payments are collected successfully from participating citizens and institutions?
The Government
When individuals’ goods or services are pooled together by a central authority to be used at a later time
Redistribution
An exchange where goods are passed back and forth from one group to another
Reciprocity
A bigger setting where buyers or sellers simultaneously trade or exchange goods or services
Market
People involved in a market exchange
- One who has a product
- Another who has money
Two individuals agree upon a specific price for a specific quantity of the product
Market Exchange
Requirements in a market exchange
- A medium of exchange
- A rate at which products are exchanged for money
- Parties who are involved in the exchange
Contains mechanisms that are essential to the existence of markets themselves, and these mechanisms are not “natural” given
States
Wherein the material density of the state both as organization and administration is of relevance
Institutional Production Systems
This opens up the field of international political economy
Interaction between markets and states
Types of States According to Market Roles
- Laissez-Faire State
- Interventionist or Developmental State
- Welfare State
The economy functions best when [the government does not intervene] through regulations, subsidies, privileges, and other types of intervention
Laissez-Faire State
In this type of state, the state and market are closely intertwined
Interventionist or Developmental State
Their relationship is managed by a special bureau or department that coordinates the developmental efforts of the state on the economy
Interventionist or Developmental State
Type of state that [plays an important role] in the achievement and protection of the economic and social [well-being of its citizens]
Welfare State
Type of state aimed at [achieving a good quality of life for the citizens], rather than merely driving economic development
Welfare State
These may also contribute to providing welfare services
Businesses and organizations
Groups and organizations which [operate outside the support] of any state or government
Non-State Institutions
Examples of Non-State Institutions
- Banks and Corporations
- Cooperatives and Trade Unions
- Transnational Advocacy Groups
- Developmental Agencies
- International Organizations
A [financial institution] licensed to provide several financial services to different types of customers
Bank
An organization, created by a group of people known as shareholders, which is legally recognized to [act as a single person in carrying out certain goals and objectives]
Corporation
Types of Corporations
- Business Corporation
- Non-Profit Corporation
Created to operate and to generate profit
Business Corporation
Established with the purpose of serving the public rather than pursuing profits
Non-Profit Corporation
An [autonomous association of persons united voluntarily] to meet their common economic, social, and cultural needs and aspirations, through a [jointly owned and democratically controlled enterprise]
Cooperative
An organization with a membership composed of workers or employees from related fields, which [aims to represent the interests and rights of its members], both in the workplace and in the society
Trade Union or Labor Union
A collection of actors (individuals or groups) characterized by their fluid and open relations with each other
Transnational Advocacy Group
United by their commitment to work on and defend certain issues and causes that are relevant across several nations
Transnational Advocacy Group
[Vital in international relations] for people seeking to change the behavior of states or non-states because they create international awareness, thus causing global pressure for policy change
Transnational Advocacy Network
International and local non-governmental organizations that are tasked and [committed to pursuing certain developmental agendas of a state]
Developmental Agency
Institutions that provide help in support of a state’s economic growth and social progress
Developmental Agency
An umbrella term used to refer to institutions [established by three or more states as voluntary members]
International Organization
Its membership is entirely composed of national states or governments
International Organization
