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What marked the beginning of major economic changes in history?
The Agricultural Revolution.
What did the Industrial Revolution lead to?
The rise of industry, new economic tools, manufacturing, and mass production.
What is the main focus of the Information Revolution?
The rise of technology and the shift from manufacturing to service work.
Define Capitalism.
A system in which all natural resources and means of production are privately owned.
Define Socialism.
A system where the means of production are under collective ownership, and property is owned by the government.
What is Market Integration?
The fusing of markets into one, where prices follow a similar pattern over time.
Give an example of Market Integration.
A French cheese manufacturer selling its products in Germany.
What are trade barriers as they relate to non-integrated markets?
Significant obstacles like customs duties and paperwork that complicate trade.
How does Market Integration benefit consumers?
It provides access to a wider variety of products, fosters competition, and drives prices down.
What do International Financial Institutions do?
They advise, fund, and assist on development projects to reduce global poverty and improve living standards.
What role does the International Monetary Fund (IMF) play?
It promotes financial security and provides policy advice to help build strong economies.
What is Horizontal Integration?
The acquisition or merging with firms in the same stage of the production process within the same industry.
Give an example of Vertical Integration.
Apple owning retail stores to control product distribution and customer experience.
What is Forward Vertical Integration?
Taking activities closer to the consumption function.
What is Backward Vertical Integration?
Moving control of products to an earlier point in the supply chain.
Define a Conglomerate.
A combination of agencies or activities not directly related, operating under unified management.
What characterizes Core Periphery countries?
High income nations that are dominant capitalist countries, like the United States and Japan.
What defines Semi-Periphery countries?
Middle-income countries sharing characteristics of both core and peripheral countries.
What are Periphery countries?
Low-income countries whose resources and labor support wealthier countries.
Name an example of a Periphery country.
Myanmar or Afghanistan.
Which region includes nations like Brazil and India?
Semi-Periphery.
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