Chapter 14

Capitalism

1. economic behavior is incentivized by profit 2. based on the private ownership of wealth

Economies in General

1. economic behavior is incentivized by survival 2. people exert themselves mentally and physically in order to produce goods and services

What are the main features of global capitalism?

1. shareholders, top management, and executive officers come from more than one country 2. corporations conduct operations in more than one country

Which of the following scenarios is the best example of worker alienation, according to Marx's view?

Sergio works in a warehouse pulling products people have ordered from an online merchant to be shipped to them the next day. His accuracy and speed are closely monitored by his immediate supervisor, which he resents.

What primary role does technology play in economic change and development?

Technological innovations help companies produce more goods and services at a cheaper cost.

Global cultural bazaar

The newest blockbuster movie produced in the United States sells more than $1 billion in revenue from across the world.

How is unionization associated with average wages?

Unionized employees, on average, make more money than non-unionized employees within the same industry.

structuring one's time

When she was unemployed, Diane dreaded each day as a long, open-ended period of time.

Select the bolded phrases that are examples of division of labor.

Work is divided into many different occupations in which people specialize. Physical health, for example, may require attention from a doctor, a surgeon, an optometrist, and a dentist women perform certain tasks and men perform other tasks

Early Twenty-First Century

Worker turnover—the percentage of workers who leave and are replaced each year—is high. Correct label: The corporation can be characterized as an "enterprise web" that links smaller businesses together.

The Fordist period after - was characterized by a high degree of stability in labor relations and high rates of -. Workers and employers engaged in -, which contributed to a range of worker benefits.

World War II unionization collective bargaining

Which of the following is an example of economic interdependence?

a woman buying meat from a butcher, clothing from a retailer, and working for a pet grooming service

Why do sociologists classify domestic labor, or housework, as work?

because it is human activity that ensures survival

Fordism

bureaucratic/vertical business structures job security most work done in-house (locally)

High-Trust System

characteristic of work at higher managerial levels Correct label: workers have autonomy over their work style and pace

What does the "race to the bottom" refer to, according to Bonacich and Appelbaum?

corporations' efforts to manufacture goods in countries with the lowest wages, the fewest environmental restrictions, and the most lax governmental regulations

According to Marx, what are the essential characteristics of human nature?

creativity, control over one's activities, and cooperation with others

Which factors contribute to the increasing ability of corporations to dominate the market through merging with and acquiring other firms?

efficient financing fewer regulations for businesses advanced technology

To the detriment of his rivals, Ford raised the wages at his production facility to obtain the best workers.

false

Union memberships, and the associated strategy of striking, has increased throughout the last twenty-five years.

false

Although low-wage work does not offer workers the opportunity to save money or extensive benefits, these kinds of jobs often lead to higher paying, more stable employment.

false.

Place the five stages of capitalism in order from the earliest to most recent type.

family capitalism managerial capitalism welfare capitalism institutional capitalism global capitalism

Post-Fordism

job insecurity most work outsourced (globally) flexible/horizontal business structures

Classify each scenario as either part or not part of the informal economy.

making candles for one's own home selling drugs to acquaintances

Economist John Maynard Keynes recommended that governments intervene - in the economy in order to spark economic growth. According to his theory, people can expect - and continuous economic growth. Keynsianism has been mostly - since the 1970s.

more full employment abandoned

Low-Trust System

numerous conflicts with management, such as strikes Correct label: high levels of worker dissatisfaction

In the United States, many adults have - where they earn a - wage or salary. Collectively, this - forms the basis of the -

occupations regular work economy

The global economy is increasingly dominated by -, which arise when corporations engage in -, allowing them to grow substantially in size. In doing so, the corporations aim to eliminate direct - and reduce productive -.

oligopolies mergers and acquisitions competition overcapacity

What is the term for a small number of firms that dominate the market in a given industry?

oligopoly

Volunteer work is unpaid labor that serves an important social role. In 2015, about 63 million people—over - of American adults—contributed 8 billion hours of volunteer service, estimated as worth -.

one-fifth $193 billion

Choose the line that represents employment in the service sector.

red line

Which industry has seen the fastest growth in employee unionization in recent years?

the service sector

What is the primary goal of scientific management (Taylorism)?

to maximize output

The type of capitalism referred to as - capitalism provides services to its employees such as -, which are offered primarily as a way to prevent -.

welfare paid vacations unionization

Using the lettered list of descriptions, place each letter in the correct economic system: Fordism, Post-Fordism, or the Informal Economy.

Alphabetical order

Identify the example that represents a portfolio worker

Amy can write, edit, and design graphics. She uses these skills in four jobs, in her first decade after college.

global workplace

An item sold in retail stores has a complex history of production, traveling through multiple countries on its way to local store shelves.

Which person exemplifies the experience of a "portfolio worker"?

Anne began her career as a paralegal working in a law firm. She later went on to receive a master's degree in psychology and worked as a jury consultant for the state. She is now considering an offer to work at a consulting firm specializing in legal consulting.

variety

As a part-time working dad, Bruce enjoys doing tasks at work that are different than childcare tasks.

- refers to the general process by which production processes are enacted by machines, whereas - refer specifically to the machines performing functions that are ordinarily done by human workers.

Automation robots

social contacts

Karl likes the people he works with and looks forward to going to clubs or games with them on the weekends.

global shopping mall

Nike sells products with its well-known "swoosh" logo to consumers in multiple countries.

What are the required elements of a workers' strike?

1. A group of employees engages in the same action. 2. All work is suspended for an indefinite period. 3. Those involved in a strike make their grievances known.

Which of the following features are typical of flexible business structures?

1. Businesses are networked together horizontally, compartmentalizing pieces of the manufacturing-to-sales pipeline. 2. Businesses rely on advanced technology to communicate with other businesses.

Flexible Production Systems

1. Companies "race to the bottom" searching around the world for the cheapest materials and labor. 2. The various components of a product are made in different factories around the world.

Capitalism in General

1. Successful entrepreneurship is rewarded with great wealth and profit. 2. Workers sense that their own abilities as human beings are taken over by others.

Which of the following statements is true of a "knowledge economy"?

1. The physical production of goods no longer plays a large part of a country's economy. 2. Many workers are employed in research, technology, design, and marketing fields. 3. The population is relatively highly educated.

What reasons do researchers give for why the United States' unemployment levels have been rising during the past 60 years?

1. The rise of international competition has affected industries important to U.S. prosperity. 2. European countries provide a stronger social safety net, including unemployment benefits. 3. The increasing use of microelectronics in industry has reduced the need for labor power. 4. The U.S. government continues to rely on Keynesianism to attempt to reduce unemployment.

lockout

A large retail company responds to workers' demands by eliminating their hours and barring them from entry, effectively eliminating their wages until the employees capitulate to the new policies.

Select the bolded phrases that represent accurate statements about technology and work.

Automation has contributed to "de-skilling" the industrial workforce

What is the best example of the international division of labor?

Clothing produced in Bangladeshi factories is sold in U.S. retail stores by trained store staff.

Why have employers in the United States been relying more and more on part-time and temporary workers?

Corporations save money by using part-time and temporary workers.

Mid-Twentieth Century

Correct label: The core corporation is located within the United States, from which some overseas manufacturing plants are controlled. Correct label: The corporation is highly bureaucratic and employs a large number of production workers and middle management.

personal identity

Emily feels proud that she earned the title "Registered Nurse."

global financial network

Exxon sells shares of its stock daily to investors around the world.

pre-modern labor conflict

Factory workers, angered by the poor working conditions, riot against their employers.

strike

Five hundred workers at a manufacturing plant refuse to come into work, sending a letter of their grievances about unpaid overtime to both their employer and the local newspaper.

work to rule

In response to their employer cutting hours and benefits, workers at a local café begin following every direction in the handbook to the letter, which slows down work markedly.

What change in investment strategies has contributed to our economic system evolving into institutional capitalism, according to some analysts?

Investors now bundle money into grouped accounts, and this money is then used to invest in several corporations.

Why does Walmart define a full-time work week as comprising 32 hours?

It gives them greater flexibility and power.