ppt_ch12_2

ppt_ch12_2 - Problems of Work and the Economy Chapter 12...

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Problems of Work and the Economy Chapter 12
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The American Free-Enterprise System Capitalism is an economic system based on a free market for the regulation of the production of goods and services The central social institutions of capitalism are markets Competition among providers of goods and services is another cornerstone of capitalism Capital refers to; » Equipment and assets » Money » Hourly and salaried workers
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The American Free-Enterprise System A capitalist who creates a new business is referred to as an entrepreneur Many businesses are formed into corporations which minimize the liability of the owners » Owners of corporations have limited liability- economic failure does not result in the liquidation of personal assets
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Global Markets and Corporate Power The trend has been toward economic globalization » Economic enterprises that engage in business activity around the globe The global economy of today was brought on by two social forces » Modern speed of communication » Modern speed of transportation
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Multinational Corporations Multinational or transnational corporations are corporations that operate in a number of countries Multinationals have their headquarters in one country while operating business activity in other countries There has been a significant growth of multinationals since WWII
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Multinational Corporations Multinationals often move to where costs of production are low and shift profits to where tax write-offs are high. This is known as outsourcing » Loss of jobs in developed countries where labor costs are often higher » Contribute to poverty in developing countries by shifting profits out to more developed countries
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Global Factory, Global Sweatshops Multinationals have been transforming the world’s economy One development has been the global factory Two factors have made possible the globalization of production » 1. High speed transportation » 2. Component production
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Global Factory, Global Sweatshops Two issues related to the global factory are » Outsourcing of work and the loss of jobs in America » Sweatshops and the hiring of child or prison labor
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Decline in the number of employers and the concentration of markets by large corporations Export of capital and jobs overseas
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This note was uploaded on 02/27/2011 for the course SYG 2010 taught by Professor Schwabe during the Fall '08 term at FSU.

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ppt_ch12_2 - Problems of Work and the Economy Chapter 12...

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