Key Terms
Economy
Social institution through which a society's resources are exchanged and managed
Mechanical solidarity
Social cohesion from shared work, religion, and education (simpler societies)
Organic solidarity
Cohesion from mutual interdependence through specialization (complex societies)
ECONOMIC SYSTEMS
CAPITALISM vs. SOCIALISM
Definition
Societies move toward similarity over time as their economies develop.
Core idea
Everything produced is a social product; everyone who contributes deserves a share of the benefit.
Market socialism
Socialism that adopts some capitalist traits (limited private ownership, market-based pricing)
Evidence
East Asian economies (Singapore, South Korea, Taiwan) rapidly converged with developed economies in the 1960s-70s and ar
Globalization
Process of integrating governments, cultures, and financial markets through international trade into a single world mark
Global assembly lines
Products assembled across multiple international transactions
Global commodity chains
Internationally integrated economic links connecting workers and corporations for manufacture and marketing
Example
Workers in northern Mexico (maquiladoras) sewing precut fabric pieces imported from elsewhere into finished garments.
Xenophobia
Illogical fear and hatred of foreigners and foreign goods
Outsourcing
Contracting jobs to an outside source, often in another country
Automation
Replacing workers with technology