COMMERCE 4SA3 Chapter Notes - Chapter 2: Product Liability, Foreign Corrupt Practices Act, Gross National Income
8 Oct 2016
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Document Summary
Political economy: the political, economic, and legal systems of a country. Systems of government in a nation (how the gov works) Democracy and totalitarianism democracy: refers to a political system in which government is by the people, exercised either directly or through elected representatives: representative democracy: citizens periodically elect individuals to represent them. These elected people then forma government, and make decisions based on citizen"s behalf. On the other hand, private producers are efficient because they are facing heavy competition and so try to reduce price to be competitive and find efficient ways. Mixed economy: certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning. Common law: based on tradition, precedent, and custom. When courts interpret common law, they do so with regard to these characteristics. Judges have a lot of flexibility in this system because they can interpret the law.
