BU205 Lecture Notes - Lecture 4: Copenhagen Business School, Free Market, Totalitarianism
Document Summary
Market system = individualism = democratic = liberalism / capitalism = low tax level = (us) Command = collectivism = totalitarianism = socialism = high tax level. Political decisions effects the freedom of the country: if they give freedom = individualism = market system if they do not. Mixed system = mostly used temporary - if politicians decide to help a company during a crisis. Right wing (totalitarianism) = command or market system (depending on the situation) State- directed: do research over industries with could be important later on (long-term investments) free economy: supply/demand -> about profit (short-term investments) The legal system: rules that regulate behavior for all parties involved at the market, why it is important: 1 expectations, 2 protect you, 3 how is going to judge you. Deregulation: removing legal restrictions to the free play of markets. Privatization: transfer the ownership of state property into the hands of private sector.
