CONTEMPORARY WORLD GUIDE LINE

 US GDP- free trade however gave a modest impact/it has become 127 billion richer each
year due to trade growth.
 OUTSOURCING- this is because developing nation have less government regulations and
cheaper labor called/ as an example the united state outsourced approximately 791,000
jobs to Mexico in 2010.
 76%- Canadian export go to the united state and about quarter of the jobs.
 AGRICULTURAL REVOLUTION- the first big economic changes/ when people learned
how to domesticate plants and animals.
 INDUSTRIAL REVOLUTION- the second economic revolution of the 1800s/ with the rise
of industry came new economic tools like steam engines manufacturing and mass
production.
 NIETEENTH CENTURY- as a result industrialist were known as robber barons with more
productivity came greater wealth but also greater economicinequality.
 MARXIST PRINCIPLE- labor unions gave way for minimum wage lawsreasonable working
hours and regulations to protect the safety of workers.
 CAPITALISM- is a system in which all natural resources and means of production are
privately owned.
 ADAM SMITH- (1770s) he is incentivized to be more efficient by improving the quality of
one’s product and reducing prices/ and he called (INVISIBLE HAND) of the market.
 MONOPOLY- become inefficient at least on the consumer end.
 SOCIALISM- whereas government plays an even larger role.
 SOCIALIST SYSTEM- the means of production are under collective ownership/ it reject
capitalism private property and hands off approaches.
 KARL MAX- first wrote about the socialism, he viewed it as a stepping stone toward
communism a political and economic system in which all members of a society are
socially equal.
 USSR- capitalist countries economically out performed their socialist counter parts
contributing unrest that eventually led to the downfall.
 A study of europian capitalist countries and socialist countries in the (1970s) fount
that the encome ratio between the top(5%) and the botton (5%) in capitalist countries
was about (10-1) in socialist countries was about (5-1).
 INFORMATION OF TECHNOLOGY- technology has reduced the role of human labor and
shift it from manufacturing base economy.
 TWENTIETH CENTURY- in other country such as united states manufacturing jobs which
were the lifeblood of their economy.
 PRIMARY LABOR MARKET- includes jobs that provide many benefits to workers like
high incomes job security health insurance and retirement package.
 SECONDARY LABOR MARKET- provides fewer benefits and include lower skilled jobs
and lower level service sector jobs.
 CORPORATIONS- are defined as organization that exist as legal entities and have
liabilities that are separate from its member.
 GLOBAL CORPORATION- the increase international trade has both created and been
supported by international group.
 MNCs/TNCs(multinational corporation/transnational corporation)- these companies
that extend beyond the borders of one country/they are also referred to as GLOBAL
CORPORATION.
 DIFFUSION- cultural practice and expression are also passed between nations spreading
from group to group.