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Flashcards in Political Economy Deck (11)
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1

Development of political and economical systems

more political systems are moving towards individualism, and more economic systems are moving towards market-based approaches.

2

Economic system (3)

Market
-productive activities are privately owned
-supply and demand focused

Command
-goods and services, as well their prices, are controlled by governments

Mixed
-combination, reflective of most
-government takes some control if/as needed

3

Legal system (3)

Systems
-Common law
--> flexible and open for interpretation
-Civil law
-->fix, not open for interpretation
-Theocratic law
--> religious orientated

4

Issues of legal systems (3)

Product safety and liabilities standards
Contracts
Property rights

5

Contract law specifies: (2)

-Conditions under which an exchange will happen
-Rights/Obligations of parties

6

Basic property rights (4)

Sell, rent, exclusive use, destroy.

7

Violation on property rights

private actions
public actions:
-Legal mechanisms
-Illegal means: corruption

8

Impacts of corruption

-reduce foreign direct investment
-rates of economic growth

9

CISG (Convention on Contracts for the International Sale of Goods)

-Contract is automatically governed by the CISG unless the countries indicate otherwise
-UN countries

10

FCPA Foreign Corrupt Practices Act

-Contains antibribery prohibitions and accounting requirements
- US issuers and domestic concerns must obey the FCPA
Even though no actions or bribes paid in the US

11

What is Competitevness

“Competitiveness is defined as the set of institutions, policies and factors that determine the level of productivity of a country.”