how many burgers could we get in different areas when we spend $50?
Purchasing power parity 购购购购购
What Business & Society is购
Unlike a traditional business school, the Business and Society undergraduate program
does not equip students with the technical skills to run a conventional business or
work in a large commercial corporation. Rather, Business and Society is a critical,
interdisciplinary program in the Social Sciences meant to equip students with broad
skill set useful in a range of future careers.
The history of capitalism can be traced back to early forms of merchant capitalism
practiced in Western Europe during the MiddleAges in the early Modern Europe.
Capitalism is an economic system in which trade, industry and the means of
production are controlled by private owners with the goal of making profits in a
ORIGINS OF CAPITALISM 购购购购购购购
What is capitalism? Capitalism is an economic system in which trade, industry and
the means of production are controlled by private owners with the goal of making
profits in a market economy.
What is Feudalism? Feudalism is system of government favored in medieval Europe.
In this system, a landowner allows peasants to live on his land in exchange for their
cultivation of it. 12th to the 15th Centurie
Capitalist Economic System
A Capitalist economic system is one characterised by free markets and the absence of
government intervention in the economy.
The emergence of Capitalism
Capitalism started to emerge during the 17th Century. Lecture 3:
Age of discovery: in the late fifteenth century 购Portugal购
age of colonialism : early eighteenth century, British emerged dominat in the
developing world economy
Ajoint-stock company: It is a business entity which is owned by shareholders.
Imperialism: Empire: group of countries that are dominated by one dominant empire
- “Pre-capitalist” trade system: 15th-19th century
o Focusing on increasing national wealth. Positive balance of trade (exporting more
o Driver= inter-state competition. Competing for resources and it drives them to
look for new market and resources
o Result=colonialism and imperialism
- Contrast with capitalism
o Adam smith criticized mercantilism
• Believed it was inefficient. Missed the key source of wealth: labour
- Main European countries:
o Portugal (15 century)商商商
o Spain (15-16)
o Netherlands (16-17 ): first example of a more private sector on
colonial expansion. Tried to capture the spice route
England/ Britain (16 onwards)
o France (16 onwards)
- Different spheres of control: dominated different areas
Consequences of Colonialism:
- Death: used slavery for a lot of the world’s population
o Disease: ex: smallpox, measles
- Instability: o Massive population movements: some were by choice and some were
not (ex: slavery)
Plantations: enslave people to have them work.
o Triangle trade: movement of people from Africa and shipped to north
and south America.
What they are:
o Early corporation: charted by the crown
o Trade monopoly: given by monarchs…exclusive right to trade to
specific parts of the world- east India Company, Hudson bay. They
o Sovereign rights: to wage war, have an army, make treaties with
foreign governments. These rights are given to companies so they can
perform in colonies
Undertake large ventures:
o Share risk: share risks by pooling capital together
o Private exploitation of colonies
o Muscovy company (1555)
o East India company (1600)
Hudson’s bay company (1670): set up trades in Canada
o South sea company (1711) East India Companies:
- Several EICs
o English (1600)
o Dutch (1602)
o Danish (1616)
o Portuguese (1628)
o French (1664)
- Tied together countries- international worldwide system
East India Company:
- Short History of the EIC
o Established (1600)
o 1 voyage (1601)
o Gave up on spice trade (1667)
o Shift to India, esp Bengal (17-18 centuries)
Trading rights (1716)
Battle of Plassey (1757): essentially conquer Bengal- ship all
the wealth back to Britain
Diwani rights (1765): rights to tax collection
o China-opium trade
o EIC shares liquidated 1874: by the British government
o Shareholders: had rights to profits and boats. 500 shares- one vote. o Court of directors: 24 directors…needed to own over 2,000 worth of
shares. They appointed people
o Governors (overseas):
Impacts of the EIC商East India Company商:
- Negative impacts:
Destroy manufacturing base
Subjugation, famines, death
Opium trade 商商商商- smuggled 商商. Opium wars took place and
British got involved.
o American Colonies:
Criticism (Adam Smith)
o Drive for monopoly: driving out competition-商drive out efficiency and
o Speculative temptation 商商商商
o No remedy for corporate abuse
Effects of imperialism today:
- Uneven development:
Why are some countries rich and others poor?
o Is this inherent
o If not, what happened to cause it
- Continuing uneven development:
o Has end of empires changed anything? Still unevenness
• Between countries
• Within countries
• Within regions and cities:
• Global north =ex-empires
Lecture 4:AGRICULTURAL购购购购购AND INDUSTRIAL REVOLUTIONS购购购购购购
After the 15th century, the British system of wool spinning industry rapid
development, the wool prices began to soar on the market, make sheep breeding
becomes profitable, but need large areas of land. So the nobles drive away the
farmers turned out to rent their land, the lamb can occupy the land up
development of sheep industry.
Agricultural Improvement: why? What? How?
Technology has improved agriculture in a significant way especially with the
development of tools and equipment that can make the procedures faster and easier.
There are also innovations and development in farming and tree planting that allows
farmers to maximize their profit potential. With technology, things in agriculture has
become more convenient and less time consuming.
What effect of the enclosure movement?
Landowners tried new agricultural methods and large landowners forced
small farmers to become tenant farmers or to give up farming and move to
2. Fewer farmers owned most of the land.
Why did the enclosure movement start initially in England?
Because Land owners wanted more land so they enclosed it. In england initially
because they had this idea that they would live better but just thinking of land owners.
After enclosure the non landowners were left with nothing. The Industrial Revolution was the transition to new manufacturing processes in
the period from about 1760 to sometime between 1820 and 1840, in London.
Why the Industrial Revolution happened in Britain?
1. England had experienced all of the forerunners of industrialization in the previous
century: an agricultural revolution, cottage industry, and an expanded commercial
revolution. These developments had built surplus capital and an
infrastructure(shipping, banking, insurance, joint stock companies).2. England already
had a handcraft textile industry using wool, but with the availability of cotton from
overseas markets as an alternative raw material.3. The scientific revolution in England
prepared the way for new inventions to be applied to industry.4. A spreading shortage
of wood (used for energy, for shipbuilding andconstruction) stimulated a search for
alternatives.5. England was rich in supplies of coal for energy and iron for
construction.6. England had a long, irregular coastline with many rivers and
naturalharbors which provided easy transportation by water to many areas.7.
England's population grew rapidly in the 18th century, providing a laborforce for
How did the enclosure movement change England’s society?
The enclosure movement created thousands of poor, unemployed beggars who
wandered to different towns looking for work. These people believed leaving England
for a chance at a better life inAmerica was appealing.
How did the enclosure movement change England society?
It gave landowners new agricultural methods and Large landowners forced small
farmers to become tenant farmers or give up farming and move to the cities.
Intellectual property (IP) is a legal concept which refers to creations of the mind for
which exclusive rights are recognized.
Classic Corporation (before 1860)
Modern Corporation (after 1900)
Create the general incorporation is easier than to create a classic corporation since the
Civil War. For example, in the article, “ By 1902
Modern Corporation is longer than the lifespan of Classic Corporation
Moreover, if one corporation wants to shape itself by different ways and it has a long
lifespan, this company will have dramatically powerful.
During 1866, there was a law passed and it allowed companies could choose
anywhere to register and easily to adjust the scope of business.
Conglomerate Company and Vertically integrated company商商商商商商商商商商商商商商
Change #1: Creating Corporations Gets Easier Change #2: CorporationsAcquire an Unlimited Lifespan
Change #3: Corporations Learn to Shape-Shift
Change #4: Corporations Gain Mobility
Change #5: Corporations Become MoreAdaptable
Change #6: Corporations Shed Their “Conscience” Mechanisms
Change #7: Unleashing the Corporate Will
Change #8: Removing Restrictions on Size
There was another different between Classic Corporation and Modern
Corporation. The shareholder took the dominant position in the company, but
the management is the “brain” in the company of Modern Corporation.
Lecture 6: the global economy
GDP(Gross Domes6c Product)
• Total cost of end goods & services
• Measurement issues
• Good & bad costs
• Contrast with GNP (gross na6onal product)
• GNP includes trade deficit / surplus
Gross national product (GNP) is the market value of all the products and services
produced in one year by labor and property supplied by the residents of a country.
Unlike Gross Domestic Product (GDP), which defines production based on the
geographical location of production, GNP allocates production based on ownership.
Transnational companies (TNC) and multinational companies (MNC)
MNC (multi national Corporation) is defined as an enterprise which is headquartered
in one country but has operations in one or more countries.
TNC (Trans National Company) are those firms which are formed by the merger of
two firms of approximately the same size, that are from different countries.
The Great Depression was a severe worldwide economic depression in the decade
preceding World War II. The timing of the Great Depression varied across nations, but
in most countries it started in 1930 and lasted until the late 1930s or middle 1940s. It
was the longest, most widespread, and deepest depression of the 20th century.
In the 21st century, the Great Depression is commonly used as an example of how far
the world's economy can decline. The depression originated in the U.S., after the
fall in stock prices that began around September 4, 1929, and became worldwide
news with the stock market crash of October 29, 1929 (known as Black Tuesday).
The Great Depression had devastating effects in countries rich and poor. Personal
income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose
as high as 33%.
The Golden Age of Capitalism was a period of economic prosperity in the mid-20th
century which occurred, following the end of World War II in 1945, and lasted until
the early 1970s. It ended with the collapse(商商) of the Bretton Woods system in 1971,
the 1973 oil crisis, and the 1973–1974 stock market crash, which led to the 1970s
Embedded liberalism购购购购购购购购购 is a term for the global economic system and the
associated international political orientation as it existed from the end of World War II
to the 1970s. The system was set up to support a combination of free trade with the
freedom for states to enhance their provision of Welfare and to regulate their
economies to reduce unemployment. The term was first used by the American
political scientist John Ruggie in 1982.
The Bretton Woods system 1944,July of monetary management established the rules
for commercial and financial relations among the world's major industrial states in the
mid-20th century. The Bretton Woods system was the first example of a fully
negotiated monetary order intended to govern monetary relations among independent
The term Washington Consensus was coined in 1989 by English economist John
Williamson to describe a set of 10 relatively specific economic policy p