Prefinal

• Economy


  One of the biggest impacts on society, composed of people, a social institution that organizes production
• Social economic system - capitalism and socialism
• Primary sector


  Extracts raw materials from natural environments (e.g. farmers)
• Secondary sector


  Gains the raw materials and transforms it into manufactured goods
• Tertiary sector


  Involves services rather than goods, gets the manufactured goods. offers services by doing things rather than making things.
• Bretton Woods system


  Tries to uplift countries especially after WW2 by reducing barriers to trade and free flow of money among countries
• GATT / General Agreement on Tariffs and Trade - a forum for the meeting of representatives from 23 member countries focused on trade goods through multinational trade agreements conducted in many "rounds" of negotiation
• WTO / World Trade Organization - an independent multilateral organization that became responsible for trades in services, non-tariff-related barriers to trade, etc. Promotes Neoliberalism, which means reducing or eliminating barriers will benefit all nations
• Bretton Woods system features

  • Expression of currency in terms of gold or gold value
  • Establishment of an official monetary authority in each country (a central bank)
  • Establishment of an overseer for exchange rates (IMF)
  • Eliminating restrictions on the currencies
  • Implementing US Dollar as global currency
• WTO was located in Geneva, Switzerland with 152 member states as of 2008
• Agricultural Revolution (by Pomeranz) - People learned how to domesticate plants and animals
• The Industrial Revolution in the 1800s - this saw the rise of industry with new economic tools like steam engines, manufacturing, and mass production leading to a wider variety of goods
• Robber barons - leds to greater productivity and wealth but also greater economic inequality
• Labor unions - led to the introduction of minimum wage, regulations to protect worker safety and reasonable working hours
• Marxist principles advocated for regulations to protect the safety and rights of workers
• The Wealth of Nations was written by Adam Smith


  1776
• Invisible Hand


  Adam Smith's concept of the self-regulating nature of the marketplace
• Incentivize


  To make someone want to do something, such as to buy something or to do work, especially by offering prizes or rewards
• Auto Pilot


  Automating repetitive tasks so that you don't have to worry about them, which can free up time for other tasks like creating content and building customer relationships
• Socialism


  Property is owned by the government and allocated to all citizens, not only those with money to afford it (e.g. Cuba, North Korea, China)
• Communism


  A political and economic system in which all members of society are socially equal
• Service Industries


  • Includes professionals
• Labor Markets

  • Primary Labor Market
  • Secondary Labor Market
• Corporations


  Organizations that exist as legal entities and have liabilities that are separate from its members
• Primary Labor Market


  • Provides many benefits to workers, like high incomes, job security, etc. (white-collar professions)
• Secondary Labor Market


  • Provides fewer benefits and includes low-skilled jobs
• NAFTA


  North American Free Trade Agreement, to reduce the cost of products
• Capitalism


  Owned resources by people, greater income inequality
• Socialism


  Owned by government, by Karl Marx
• GATT

  General Agreement on Tariffs and Trade
• WTO

  World Trade Organization
• IMF


  partner of World Bank, founded after WW2 to help countries
• OECD

  Organization for Economic Cooperation and Development, has 35 richest countries as members, Latvia as latest
• OPEC


  Organization for Petroleum Exporting Countries, includes Saudi, Iraq, Kuwait, Iran, Venezuela, UAE, Algeria, Libya
• EU

  European Union. Countries except Great Britain, Sweden, Denmark adopted EURO as BASIC CURRENCY
• NAFTA

  North American Free Trade Agreement
• Surplus


  An amount of something left over when requirements have been met, can be agricultural, economic, industrial, or information
• IMF and World Bank - founded after WW2.
• Socialism Countries - Cuba, North Korea, China