 | Term | Definition |
| |
Communism |
use revolution, totalitarian dictatorship and violence |
| |
social democrat |
use peace and democracy |
| |
democracy |
checks and balances, direct vs. representative |
| |
communist tot. |
tot. based on a party |
| |
theocratic tot. |
tot. from religion |
| |
tribal tot. |
tot. from ehtnicity |
| |
right wing tot. |
tot. from military, dictatorship oriented |
| |
market economy |
privately owned; supply and demand |
| |
command economy |
controlled by government |
| |
mixed economy |
market & command mixed, gov't can take control if needed, most gov'ts |
| |
common law |
judges interpret law based on precedent |
| |
civil (code) law |
judges apply law, focused on statute; strict |
| |
theocratic law |
based on a religion |
| |
contract |
conditions of exchange, rights/obligations of parties |
| |
patent |
inventors' rights to manufacture, use, + sell |
| |
copyright |
rights for authors', composers', artists' and publishers' protection of their work |
| |
trademark |
unique design and name; often registered |
| |
Mercantilism |
encourage imports, discourage exports; gain wealth when exports exceed imports |
| |
zero-sum game |
economic gain by one country = loss by another country; 1 winner & 1 loser; can't last |
| |
Absolute Advantage |
when a country is most efficient at producing a certain product; Adam Smith 1776 |
| |
comparative advantage |
countries should specialize in products they make most efficiently; lowest oppurtunity cost, Ricard 1817 |
| |
positive-sum gain |
all countries can benefit even if some more than others |
| |
relative factor endowments |
Hecksher-ohlin; countries will specialize in goods that correlate with their resources; assumes similar technologies around world |
| |
New Trade theory (1970s) |
first mover advantage; specialization =returns |
| |
economies of scale |
cost advantages associated with large-scale production |
| |
National competitive advantage |
Porter; indusrty is a function of factor endowments, demand conditions, related and supporting industries, and firm strategy, structure and rivalry |
| |
tariff |
a tax on imported goods; paid by importer; leads to inefficiency |
| |
subsidies |
gov't financial assistance to a domestic producer; to reduce costs or continue operations |
| |
import quota |
direct restriction on quantity of a good that can be imported |
| |
voluntary export restraint |
quota on trade by exporting country at request of importing country |
| |
quota rent |
extra profit producers make when supply is artificially limited by an import quota |
| |
local content requirements |
some fraction of a good must be domestically produced |
| |
administrative policies |
bureaucratic rules designed to restrict imports or boost exports |
| |
anti-dumping policies |
restrict selling goods in a foreign market for less than their "fair" market value (below cost of production) |
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