Political economy
Political, economic and legal systems of a country are interdependent: they interact with and influence each other, and in doing so, they affect the level economic well being.
Political system
The system of government in a nation.
Collectivism
A political system that stresses the primacy of collective goals over individual goals.
Communist
They believe that socialism could be achieved only through violent revolution and totalitarian dictatorship.
Social democrats
They have committed themselves to achieving socialism by democratic means, turning their backs in violent revolutions and dictatorship.
Privatization
State-owned enterprises being sold to private enterprises.
Individualism
This refers to the philosophy that an individual should have freedom in his or her economic and political pursuit.
Democracy
This refers to a political system in which government is by the people, exercised either directly or through elected representatives.
Totalitarianism
This is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.
Representative democracy
Citizens periodically elect individuals to represent them.
Theocratic totalitarianism
This is found in states where political power is monopolized by a party. (The highest power like the pope or Islamic principles)
Tribal totalitarianism
This occurs when a political party that represents the interests of a particular tribe (not always the majority tribe) monopolizes power.
Right-wing totalitarianism
This generally permits some individual economic freedom but restricts individual political freedom, frequently on the grounds that it would lead to the rise of communism.
Market economy
All productive activities are privately owned, as opposed to being owned by the state. Production is determined by supply and demand.
Command economy
The government plans the goods and services that the country produces, and the prices at which they are sold. All businesses are state-owned. Historically found in communist economies
Legal system
This refers to the rules or laws that regulate behaviour along with the processed by which the laws are enforced and through which redress for grievances is obtained.
Common law
This is based on traditions, precedents and customs ( For example Great Britain)
Civil law system
This is based on a details set on laws organized into codes
Theocratic law system
This based on religious teachings. ( Islamic laws id the most widely practised theoretical legal system in the most modern world)
Contract
This is a document that specifies the conditions under the exchange that occurs and details the rights and obligations of the parties involved.
Contract law
This is the body of law when one party feels the other has violated either the letter of the spirit of an agreement.
United Nations Convention on Contract for the International Sale of Goods (CISG)
The CISG established a uniform set of rules governing certain aspects of the making and performance of everyday commercial contract between sellers and buyers who have their places of business in different nations.
Property Rights
This refers to the legal right over the use to which a resource is put and over the use made of any income that may be derived from the resource.
Private action
This refers to theft, piracy, blackmail and the like by private individuals or groups.
Public action
To violate property rights occurs when public officials, such as politicians and government bureaucrats, extort income, resources, or the property itself from property holders.
Foreign Corrupt Practices Act (FCPA)
Following the revelations that U.S companies bribed the government in foreign countries in an attempt to win lucrative contracts, the FCPA was passed. ( This law make this illegal to bribe a foreign government official to obtain or maintain business over which that foreign official has authority.