political economy (final) Flashcards
what are the factors of production?
- land
- labor
3.capital - enterprise
define political economy
study of how political and economic systems interact
define political system
process of how laws are made and how resources are allocated in society
how is the political economy considered
through external factors around businesses
types of democracies
- totalitarian
- democracy
define totalitarian
government is the only decision-maker
types of totalitarianism
- communism
- theocratic
- tribal
- socialism
define democracy
people have the power to make decisions either directly or by electing representatives to do so
what is communism?
all property is owned by the government, aiming for a society without social class
example of communist country
china
what is socialism?
the government owns and controls the means of production and distribution of goods, aiming for reduced income inequality
what is theocratic
laws and policies based on religious beliefs
example of theocratic country
saudia arabia
what is tribal
when tribal leaders hold power, which can lead to a system where they have complete control
what is collectivism?
needs of a society as a whole are more important than individuals
what is individualism?
the interest of individuals taken over the interest of the state, individuals have the freedom to pursue their economic and political goals
what is the economic system?
governments organize and distribute available resources, goods, and services across a country
types of economic systems
- command economy
- mixed economy
- free market
what is command economy?
all resources are owned by the government
what does the government decide in a command economy?
- what to produce
- for whom (domestically or internationally)
- how much
disadvantages of command economy
- lack of profit
- low economic growth
- bureaucracy
examples of command economies
- egypt
- north korea
leaning towards command
what is a free market?
private ownership of all resources; supply and demand decide what’s produced
advantages of free market
- higher efficiency because businesses are profit-driven
- the government oversees the functioning of the economy
examples of free market
- usa
- gulf countries
leaning towards free market
what is legal system?
rules and laws enforced that regulate behaviour
what influences the legal system
the political system
types of laws
- common
- civil
- theocratic
what is common law?
based on traditions and precedents, it’s more flexible.
what is civil law?
based on laws organized into codes
what is theocratic laws
based on religion, most common is sharia
common law vs civil law
common law has a detailed contract, while civil law has a less specific one
what law did the UN create
ISG
what is the ISG
-a law on contracts
It applies automatically
helps make contracts more fair by setting neutral rules for both parties
define property rights
legal rules that give people control over their property
what is intellectual property?
an idea
how is intellectual property protected?
- patenty
- copyright
- trademark
what is the foreign corrupt practices act (FCPA)
it’s illegal to bribe a foreign government official
