GMGT 1010 - Varieties of Capitalism - Class 4

A comprehensive set of 500 flashcards covering key concepts from the lecture notes on Varieties of Capitalism, including continua of government intervention, major capitalism types (laissez-faire, state, stakeholder, clean, etc.), and country-specific models (US, Canada, Germany, Japan, China), along with organizational structures like German co-determination, keiretsu/zaibatsu in Japan, and historical-economic patterns.

What is the concept of capitalism as a continuum of government intervention?

A spectrum from less government intervention (pure capitalism) to more intervention (socialism).

What is another term for 'pure capitalism' where government intervention is minimal?

Laissez-faire capitalism.

Which term refers to an economic system where the state undertakes commercial, for-profit activities through state-owned enterprises?

State capitalism.

What is the key aim of stakeholder capitalism?

To balance the needs of shareholders with those of employees, suppliers, customers, and local communities.

What does clean capitalism emphasize in the marketplace?

Incorporating social, economic, and ecological costs and benefits into prices while minimizing negative externalities.

Which form of capitalism typically features government involvement limited to police and fire protection?

Laissez-faire capitalism.

Name a form of capitalism that seeks to regulate the market with generous social welfare, as seen in Germany.

Social market economy.

What is 'krone' capitalism? (Trick question—identify the mismatch)

There is no form called 'krone' capitalism in the notes; this is a distractor.

Which capitalism model is described as regulated market with a focus on social welfare and often associated with Germany?

Social market economy.

What is the defining characteristic of producer capitalism?

Emphasizes production, employment, and statist policies.

Which capitalism emphasizes short-term shareholder value over other stakeholders in the US context?

US-style capitalism (shareholder capitalism).

What term refers to an economic system where the government plays a strong role in ownership and control of enterprises?

State capitalism.

Which form of capitalism aims to create value for all stakeholders, not just shareholders?

Conscious capitalism.

What is the general meaning of 'family capitalism'?

Capital ownership and business control are dominated by extended family clans.

What is frontier capitalism?

Capitalism in its beginning stages where fundamental business practices are being introduced.

What is social capitalism? (Note: not listed in the notes as a separate major form)

Not defined as a separate form; the notes list various forms including stakeholder, social market, and others.

Which form of capitalism is associated with interlocking business groups in Japan, known as keiretsu?

Japanese capitalism.

What historical conglomerates in Japan are the forerunners to keiretsu known as?

Zaibatsu.

Which term describes capitalism with lifetime employment norms in Japan?

Collective capitalism.

In German capitalism, what law promotes employee representation on governance bodies?

Co-determination Law of 1951.

What is the key element of German co-determination on the supervisory board?

Employees elect the works council nominees; the board includes employee representatives.

Which characteristic of German capitalism involves significant cross-holdings and bank financing?

Bank financing with significant cross-holdings.

What is cross-holding in corporate terms?

A situation where a company holds equity in another company, and vice versa.

What signifies strong vocational training in German capitalism?

A focus on quality and robust vocational training.

Which form of capitalism is associated with the German general economic model and welfare policies?

Social market economy.

What is the approximate international status of US-style capitalism in terms of government involvement?

Closer to pure capitalism with limited government involvement.

What is the characteristic of US-style capitalism regarding worker representation?

Less worker representation in corporate policies.

What term is used for the US model where stock market financing is prominent and ownership is focused on shareholders?

Shareholder capitalism (US-style capitalism).

What is 'hard' capitalistic structure in Canada described as relative to the US and Germany?

Canada has more state involvement than the US but less than Germany.

What foundational clause in the Canadian Constitution allows government to regulate for the public good?

The Peace, Order, and Good Government (POGG) clause.

What is the general description of Canadian capitalism?

A mixed market economy with a significant role for the state; higher union density than the US.

What form of capitalism emphasizes state involvement and social welfare, as seen in Germany's model?

Social market economy.

Which Japanese organizational form involves widespread corporate networks and loyalty?

Keiretsu.

What is the historical first wave of large family-controlled industrial groups in Japan called?

Zaibatsu.

What is a common feature of both keiretsu and zaibatsu in Japan?

Interlocking relationships among firms (networks).

What country is associated with 'POGG' and a mixed economy with strong state involvement?

Canada.

Which form of capitalism involves the government having a direct role in business activity, including ownership of enterprises?

State capitalism.

Which form of capitalism is described as allowing for generous social welfare and a regulated market in Germany?

Social market economy.

What is a hallmark of consumer capitalism?

Limited government involvement with a strong emphasis on consumer choice and open borders.

What is the key idea behind frontier capitalism?

Capitalism in its early development stage introducing fundamental business practices.

Which term describes capitalism that integrates ecological costs into prices?

Clean capitalism.

Which form of capitalism explicitly includes social, economic, and ecological costs into market prices?

Clean capitalism.

Which form of capitalism emphasizes production and employment alongside state policies?

Producer capitalism.

What is 'mercantile capitalism' historically focused on?

Trade-based capitalism emphasizing commerce and merchants.

What is 'industrial capitalism' primarily associated with?

Capitalism driven by industrial production and factories.

What is 'global capitalism'?

Capitalism characterized by global markets, cross-border trade and investment.

Which capitalism model includes government intervention as a key feature and is widely taught in comparative institutions?

Varieties of capitalism as a spectrum.

What is the term for the reality that capitalism varies by social, political, and economic traditions of each country?

Capitalism varies around the world according to social, political, and economic traditions.

Which country is often used as an example of 'producer capitalism' with emphasis on production and statist policies?

France or Japan (as examples) per the notes.

Which country is given as an example of social market economy in page 10 notes?

Germany.

Which country is associated with 'lifetime employment' and 'collective capitalism'?

Japan.

What is the primary feature of 'co-determination' in German capitalism?

Employee representation on the supervisory board and works councils.

Which form of capitalism is characterized by 'state-owned enterprises'?

State capitalism.

Which term describes the involvement of unions in German corporate governance?

Unions nominate representatives on the supervisory board as part of co-determination.

What does 'bank financing with significant cross-holdings' imply about German capitalism?

Banks hold significant equity ties with firms, supporting cross-ownership.

What does 'interlocking business groups' mean in Japanese capitalism?

Keiretsu—networks where firms hold mutual ownership or shareholdings.

What is a key difference between US-style capitalism and the German social market economy?

US-style emphasizes shareholder value and limited welfare; Germany emphasizes social welfare within a regulated market.

What is the main idea of 'conscious capitalism' for stakeholders?

Creating value for all stakeholders, not just shareholders.

Which term describes capitalism with a strong focus on sustainability and ethical considerations?

Conscious capitalism or green capitalism (depending on context).

What is 'producer capitalism' primarily about?

A focus on production and employment policies by the state.

Which form of capitalism is characterized by 'regulated capitalist market with generous social welfare'?

Social market economy.

What key feature distinguishes 'consumer capitalism' from other models?

Limited government involvement and emphasis on consumer markets and open borders.

What is the meaning of 'capitalism as a continuum of government intervention'?

A spectrum from minimal to extensive government roles in the economy.

Which country is used as an example of Canadian capitalism in these notes?

Canada.

Which form of capitalism aligns with 'stock market financing'?

US-style capitalism.

What is a 'works council' in German capitalism?

A body representing employees within a company that is part of the co-determination structure.

What is a 'supervisory board' in German corporate governance?

A board elected by shareholders and employees that oversees the management board.

In German capitalism, who nominates the 'further member' of the supervisory board?

The other supervisory board members nominate the 'further member'.

What is the 'Board of Management' in German capitalism?

The executive directors responsible for running the company.

Which capitalism form emphasizes the balance between shareholders and other stakeholders?

Stakeholder capitalism.

Which capitalism model is described as 'regulated with social welfare' in the German context?

Social market economy.

What is 'collective capitalism' referring to in Japan?

A system where capitalist activity is organized through interlocking groups and employment practices.

Which form of capitalism is most closely linked with 'capital ownership by extended clans'?

Family capitalism.

Which country is described as having 'strong state involvement' in business and the interlocking keiretsu structure?

Japan.

Which term describes the 'Peace, Order, and Good Government' clause in Canada?

POGG clause.

Which concept is used to describe the influence of social and political traditions on how capitalism operates?

Capitalism varies according to social, political, and economic traditions.

Which form of capitalism is most closely associated with 'interlocking groups of firms' in post-war Japan?

Keiretsu.

Which capitalist system is characterized by government ownership of major enterprises and central planning elements?

State capitalism.

What is the relationship between 'capitalism' and 'government intervention' in the continuum model?

Capitalism ranges from minimal (pure capitalism) to extensive government intervention (socialism).

Which term refers to the concept of 'capitalism with strong state involvement' seen in Canada and elsewhere?

Mixed capitalism.

Which form of capitalism is often cited as being 'closer to pure capitalism' among major models?

US-style capitalism.

What is the primary economic feature of 'industrial capitalism'?

Capitalism driven by industrial production and manufacturing.

What is the main feature of 'mercantile capitalism'?

Capitalism based on trade and mercantile activities.