National Differences in Political Economy

Market economy

All production activities are privately owned, as opposed to being owned by the state. For this system to work, supply must not be restricted meaning no monopolies.

Civil Law

Based on detailed set of laws organized into codes. Germany, France, Japan, and Russia follow this rules.

Common law

Based on the tradition: country's legal history, precedent: cases that have come before the courts in the past, and custom: the ways in which laws are applied in specific situations.

Communism

Believed that socialism could only be achieved through violent revolution and totalitarian dictatorship

Contract law

Body of law that governs contract enforcement, normally resorted to this when one party feels the other has violated either the letter or the spirit of an agreement.

Mixed economy

Certain sectors of the economy are left to the private ownership and free market mechanism while other sectors have significant state ownership and government planning.

Social democrats

Committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship

Contract

Document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties involved.

Contracts for the International Sale of Goods (CIGS)

Establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Totalitarianism

Form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Theocratic totalitarianism

Found in states where political power is monopolized by a party, group, or individual that governs according to religious principles. States such as Iran or Sudan limit freedom of political and religious expression with laws based on Islamic principles.

Representative democracy

Individual's right to freedom of expression, opinion, and organization, a free media, regular elections in which all eligible citizens are allowed to vote, universal adult suffrage, limited terms for elected representatives

Socialism

Manage state-owned enterprise to benefit society as a whole, rather than individual capitalists

Theocratic law system

One in which the law is based on religious teachings. Islamic population follows this system.

Right-wing totalitarianism

Permits some individual economic freedom but restricts individual political freedom, on the grounds that it would lead to the rise of communism.

Individualism

Philosophy that an individual should have freedom in his or her economic political pursuits

Tribal totalitarianism

Political party that represents the interests of a particular tribe monopolizes power. Can be seen in African countries such as Zimbabwe, Tanzania, Uganda, and Kenya.

Democracy

Political system in which government is by the people, exercised either directly or through elected representatives

Collectivism

Political system that stresses the primacy of collective goals over individual goal

Legal system

Rules, or laws, that regulate behavior along with the processes by which the laws are enforced and through which redress for grievances is obtained.

Political system

System of government in a nation. There are two dimensions: collectivism vs individualism, or democratic vs totalitarian.

Command economy

The government plans the good and services that a country produces, the quantity in which they are produced, and the prices at which they are sold

Communist totalitarianism

This political system can be seen in China, Vietnam, Laos, North Korea, and Cuba where they deny many basic civil liberties to their populations.

Political economy

This term stresses that the political, economic, and legal systems of a country are interdependent; they interact and influence each other, and in doing so they affect the level of economic well-being