Sociology Exam: The Capitalist Class

Questions and Answers

What is meant by concentration in a capitalist context?

Capital distributed evenly among people

Capital being eliminated completely

Capital controlled by the government

Capital in fewer and fewer hands (correct)

What is centralization in terms of capitalism?

Capital is centered in a few core geographic areas.

What does the term 'created capitalist class' refer to?

Process of concentration and centralization.

What are conglomerates?

Corporations made up of a whole bunch of seemingly unrelated businesses. Signup and view all the answers

What is vertical integration?

Control over the whole line of production. Signup and view all the answers

What is horizontal integration?

Buying up other industries. Signup and view all the answers

What does 'core' refer to in the context of wealth distribution?

A small number of regions and nation-states with the majority of the wealth. Signup and view all the answers

What is meant by periphery in economic terms?

Least economically advanced countries. Signup and view all the answers

What constitutes 'The Capitalist Class'?

Transnational corporations and the largest conglomerates in the world. Signup and view all the answers

What is globalization in relation to capitalism?

Capitalism as a global system. Signup and view all the answers

What are the consequences of capitalism?

Decline in small businesses, low annual profits, and high bankruptcy. Signup and view all the answers

What is a paper economy?

Markets and exchanges dealing with legal claims on physical assets rather than the assets themselves. Signup and view all the answers

Study Notes

Capital Concentration and Centralization

Concentration refers to capital being controlled by a smaller number of individuals or entities, leading to fewer hands controlling a larger share of wealth.
Centralization indicates that capital is focused in a limited number of geographic areas, intensifying economic disparity.

Emergence of the Capitalist Class

The process of concentration and centralization gives rise to a newly formed capitalist class, dominated by powerful economic players.

Conglomerates

Conglomerates emerge as a result of concentration and centralization, involving diverse businesses under a single corporate entity (e.g., Bic producing both lighters and pens).
Telecommunications have facilitated rapid communication among these businesses, enhancing their operational synergy.

Types of Integration

Vertical integration entails control over the entire production process, from raw material extraction to retail, effectively forming conglomerates.
Horizontal integration involves acquiring various industries or businesses, such as Loblaws’ purchase of Shoppers Drug Mart, also contributing to conglomerate formation.

Economic Core vs. Periphery

The core consists of regions and nation-states with significant wealth concentration, exemplified by the USA (442 billionaires), Asia-Pacific (386 billionaires), and Europe (366 billionaires).
The periphery refers to economically disadvantaged countries, highlighted by fewer billionaires: The Americas (129) and Middle East/Africa (103).

The Capitalist Class

Comprises transnational corporations, which are often larger than the nation-states themselves and operate across borders to optimize costs through cheaper labor and access new markets.

Globalization

Describes capitalism as a global system, integrating economic activities worldwide.

Imperialism

Characterized by the mid-20th to 21st century, following WWII, where direct colonialism ceased but led to economic dependency of ex-colonies.
The USA emerged as the leading imperial power, promoting global investments through transnational corporations and state assistance, consolidating economic influence.

Consequences of Capitalism

Notable declines in small businesses, farms, and fishing industries.
Characterized by low annual profits for the majority of businesses and a high rate of bankruptcies.

Paper Economy

The "paper economy" represents economic activities based on legal claims to physical assets, rather than direct ownership or interaction with those assets.

Description

Test your knowledge on key concepts related to the capitalist class in sociology. This quiz covers terms like concentration, centralization, and the created capitalist class. Perfect for exam preparation and understanding of economic structures.