Capitalism

What are the two basic classes shaping inequality in capitalist societies?

Workers and capitalists

According to Marx and Engels, what is the nature of society?

Society is dynamic and changes over time.

What distinguishes capitalism from previous modes of production?

Constant innovation and revolutionizing the means of production.

How does capitalism create its own destruction?

By sowing the seeds of class tension, tremendous inequality, and labor exploitation.

What is the fundamental crisis of the capitalist mode of production?

Overproduction.

Who are considered the carriers of revolution in a capitalist society?

The workers.

What is 'class formation'?

The organization of workers into a class to pursue common interests.

What role do labor unions serve?

They are the organizational expression of labor aiming to give workers a voice and reduce social inequality.

What are the essential elements of capitalism?

Control over the means of production, worker behavior, and working conditions.

Why might workers struggle to unite and pursue common interests?

The overwhelming power of capital and divisions among workers based on ethnicity, race, or gender.

What is a transnational corporation (TNC)?

A business headquartered in one country but operates in one or more other countries.

How do TNCs reduce production costs?

By seeking cheaper sources of production and labor in other countries.

What are two primary sources of labor's power?

Position in the production process and solidarity among workers.

What is the most important function of the modern state in capitalism?

Regulation of trade and commerce for the smooth functioning of the economy.

What is the impact of globalization on capitalism?

It drives continuous expansion and economic growth.

What does Marx and Engels argue about the future of capitalism?

It will end through a revolution brought about by class conflict.

How does the competitive market reality differ from the ideal concept in capitalism?

Markets tend to become oligopolistic and monopolistic rather than competitive.

What strategies do today’s TNCs use that differ from earlier corporations?

They focus on design, technical knowledge, and management innovations rather than just natural resources.