Global Capitalism and Economic Systems

This set of flashcards covers key terms and concepts related to capitalism, economic theories, and globalization.

Capitalism

An economic system where trade and industry are controlled by private owners for profit.

Commodification

The process of turning goods, services, or ideas into commodities to be traded in a market.

Primitive Accumulation

A Marxist concept explaining the means by which initial capital was acquired, often through dispossession and violence.

Neoliberalism

An ideology that promotes free markets and competition in all aspects of life, advocating minimal government interference.

Mercantilism

An economic theory that emphasizes the importance of accumulating wealth through trade for national power.

Socialism

A political and economic system where the means of production are owned or regulated by the community as a whole.

Dependency Theory

A theory suggesting that the global economic system is structured to benefit wealthy countries at the expense of poorer nations.

Liberalism

An economic approach advocating for minimal barriers to trade and the belief that it enhances global welfare.

Portfolio Investment

Investment in financial assets such as stocks and bonds without active management of those assets.

Foreign Direct Investment (FDI)

Investment where a company directly controls and manages foreign assets, such as factories or farms.

Economic Inequality

The unequal distribution of wealth and resources among individuals or groups within a society.

Trade Wars

Conflict between countries characterized by the imposition of tariffs or other trade barriers.

Tariff

A tax imposed on imported goods to protect domestic industries.

Dispute Settlement

A process for resolving disagreements under international trade agreements.

Structuralism

An economic theory that argues the global economy is structured in a way that disadvantages poorer countries.

Most Favored Nation (MFN)

A trading status that requires a country to apply the same conditions on all WTO members as it does to its most favored trading partner.

WTO (World Trade Organization)

An international organization that regulates and facilitates international trade agreements.