TXC 174 book ch6 (for MT2)

TXC 174 book ch6 (for MT2) - Ch 6 Politics and Political...

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Ch 6. Politics and Political Positioning -Silk traders of Asia and Europe represented totalitarian govt. systems where one family or some other entity maintained complete political and economic control under a dictatorship -successful international trade tend to be based most heavily on western capitalist form of economic exchange or trade Capitalism -private ownership of property exists -income from business operations accrue to the ppl or firms that won it -individuals and firms are free to compete for economic gain -profit motive is basic to economic life In capitalist model… -international transactions involve private businesses and exchanges of monetary values between firms in separate countries -tends to be associated with democratic political systems but not required Socialism/communism -resources are cooperatively or state owned -international trade may take place between government -when firms in capitalist and socialist/communist trade, method of valuing transaction differs -reducing trade barriers, quotas (biggest barrier in textiles) phased out by 2005 -complaints that developing countries are not reducing trade barriers (keep insisting that their fledgling industries need trade protection Quota system… - # of garments or a particular type that could be bought in a single yr from a single country were limited from big suppliers like china -with no quota, # of garments from single source can be increased
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TXC 174 book ch6 (for MT2) - Ch 6 Politics and Political...

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