DEFINITIONS
Imperialism is the monopoly stage of capitalism, the highest and final stage of capitalism.
What is one way that loans are given to underdeveloped countries?
One of:
International institutions
Private lending from a bank
Via ‘aid’ from government to government
Why do we say imperialism means war and the preparation for war?
One power can grow and expand only by overpowering another power.
This means inevitable war over dividing territory, asserting political power and dominance, in order to ensure economic control of the world.
Is it possible to stop monopolism? Why or why not?
No. It is in the deepest economic interest of businesses to own and control as much of the market and as much of the production as possible. This deep-seated economic interest highly incentivizes big businesses in certain industries to collude with or merge with other big businesses in that industry and to wield their advantages of power and wealth to fix prices, to eradicate competition from smaller and medium-sized businesses, and to divide up the market between as few firms as possible, sometimes only between one firm.
In Canada, what are the "Big 5 Banks," and why are they considered crucial to the country's financial system?
The "Big 5 Banks" in Canada are Royal Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, Bank of Nova Scotia, and Toronto-Dominion Bank. They collectively hold a substantial portion of the country's banking assets and are considered "too big to fail" due to their impact on the economy. The state might bail them out in times of trouble, as seen during the Global Financial Crisis (GFC).
Define monopoly capitalist
Under monopoly capitalism, a small number of companies dominate their sector or branch of industry and have the power to set prices, control supply, and influence market conditions.
How do capitalists make money off debt ?
The high interest on the loans accumulates as debt. The debt can be sold and then invested into shares of other privatized companies.
Imperialism divides the world into 2 types of countries …what are they ?
Developed - capital rich / lending
Underdeveloped - capital poor/ borrowing
How does monopolization impact economic crises, according to the presentation?
Economic crises become more severe and destructive as the actions and vulnerabilities of a few key players have a more noticeable effect on the entire economy. The subprime mortgage crisis is given as an example.
What is finance capital, and how does it come into existence?
Finance capital is the result of the merging of bank capital with industrial capital. This integration creates a financial oligarchy.
Define foreign debt
The debt of underdeveloped countries that they owe to developed countries
Name 3 ways that imperialist countries profit from lending to their colonies and semi-colonies.
3 of:
charging interest on loans
deregulation: pressuring governments to lift trade restrictions
by giving government contracts to monopolies
by creating new markets for produced materials
Destruction of feudal modes of production
Creation of markets for colonial goods to be sold
Creation of needs for finished goods
Creation of trade economy to procedure and extract cheap raw materials
access to cheap pools of labour
Access to cheap land
Monopolies seek colonial relationships as a way to help them export ________.
surplus capital
Why does economic anarchy persist under monopoly capitalism despite advances in socialized production?
Economic anarchy persists because, despite planning within individual corporations, there is no central coordination for the entire economy. Fierce competition among monopolies exacerbates market anarchy.
How did the role of bank change between the era of free competition to monopoly capitalism?
In the era of free competition, industry was the primary driver of the economy, while banks played a supportive role in financial dealings. However, with the concentration of money capital in a few large banks, banks gained more influence and control over the economy.
Super profits are made when the financial monopolies lend to other countries.
How does taking loans impact underdeveloped countries?
Does the creation of foreign debt further widens the gap between developed and underdeveloped countries on a global level.
How does overseas investment lead to the creation of super profits?
Through lending/ and borrowing of money between financial monopolies and their colonies / semi-colonies
what is state monopoly capitalism?
State monopoly capitalism is when the state and monopoly capital operate as a unified entity. The state takes an active role in managing and regulating the economy to safeguard and advance the interests of monopoly capital.
What is the significance of the "personal link-up" between banks and industry?
The "personal link-up" establishes a close connection between banks and large industrial enterprises, enabling banks to gain control over these enterprises through shareholding rights and board representation.
Define the difference between multinational corporations and transnational corporations.
MULTINATIONALS invest in and trade in many countries but the capital is controlled by one country.
TRANSNATIONALS are mergers of monopolies of 2 or more countries.
Name 1 international institution that facilitates loans.
one of:
International Monetary Fund (IMF)
World Bank
Asian Development Bank
Capitalists seek new markets when ______.
The profit from existing markets has been saturated.
Who is the labour aristocracy in Toronto?
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How does finance capital contribute to the housing crisis?
Finance capital contributes to the housing crisis by treating housing as an investment vehicle for speculation.