Business-State Relations+Varieties of Capitalism

A collection of vocabulary flashcards based on concepts from globalization, financialization, and varieties of capitalism.

Globalization

Increased internationalization of production and finance.

Foreign Direct Investment (FDI)

Investment in actual productive operations like factories and offices.

Financialization

Growing share of investment in financial assets rather than productive investment.

Deindustrialization

Decline in manufacturing jobs and output as services and finance grow.

Market-Seeking FDI

Investment to access new customers and markets.

Efficiency-Seeking FDI

Investment aiming to lower production costs, especially labor costs.

Resource-Seeking FDI

Investment to gain access to natural resources such as oil and minerals.

Outsourcing

Contracting production to another firm without ownership.

Smile Curve

A model showing where value is created in global supply chains, with high value in design and marketing.

Proprietary Assets

Assets that firms do NOT want to outsource, such as technology and patents.

Nikefication

A model of outsourcing where a company contracts production but controls branding and design.

Transnational Corporation (TNC)

A company that operates in more than one country.

Union Density

The percentage of workers who are union members.

Union Coverage

The percentage of workers protected by union contracts.

Tax Havens

Countries where corporations book profits to avoid paying taxes elsewhere.

Global Minimum Tax

A proposal to prevent corporations from shifting profits to avoid taxes.

Anglo-Saxon Capitalism

A capitalism model characterized by free markets, low welfare, and a strong finance sector.

Nordic Capitalism

A model featuring strong labor unions, public healthcare, and higher taxes.

Corporatism

A system where unions, employers, and government coordinate wages and policy.

East Asian Capitalism

Characterized by a developmental state, export-oriented growth, and labor suppression.

Reciprocal Control

A model where governments support firms based on their performance in exports and productivity.

Productivity

The amount of output produced per worker, crucial for raising standards of living.