AP®︎ World History: Topic 5.7 Flashcards

Collection of state policies seeking national wealth and power through regulated trade, tariffs, monopolies, bullion accumulation, and controlled colonial markets

Ideology favoring private property, competitive markets, freer trade, and limited government direction of economic activity

Scottish Enlightenment thinker whose 1776 Wealth of Nations defended private enterprise, competition, division of labor, and freer markets and trade

Dividing production into specialized tasks so workers become more efficient and total output rises, illustrated by Smith’s pin factory

Principle that private economic activity should generally operate without extensive government interference, though government still protects property, contracts, and public order

Market in which buyers and sellers, rather than direct government commands, mainly determine production, prices, investment, and consumption

International exchange with reduced tariffs, monopolies, and restrictions on imports and exports

British tariffs protecting landowners from cheaper imported grain; repealed in 1846 as industrial and urban interests gained influence

System of private ownership, capital investment, wage labor, mechanized market production, and reinvestment of profits in expanding industrial enterprises

Reduction in cost per unit when firms produce and distribute goods in larger quantities

Enterprise that pools capital by selling ownership shares to multiple investors, dividing both ownership and risk

Business legally separate from its owners that can own property, make contracts, borrow, and continue despite changes in shareholders

Legal principle restricting a shareholder’s potential loss to the amount invested rather than making personal property responsible for corporate debts

Organized market for buying and selling company shares, making ownership easier to transfer and helping firms attract investment

Institutions that collected deposits, made loans, transferred funds, exchanged currencies, and directed savings and credit into commerce and industry

Arrangement in which a premium purchases compensation for specified losses, spreading risks such as shipwreck, fire, or property damage

Firm with major operations across countries or imperial territories, linking international sources of capital, raw materials, production, and markets

Bank founded in Hong Kong in 1865 that financed trade, exchanged currencies, and handled payments across China, India, Europe, and British possessions

Wealth invested in productive assets or enterprises to generate additional wealth

Adam Smith’s 1776 work arguing for greater productivity, competitive markets, and freer trade instead of mercantilist restrictions

A share of ownership in a company that gives an investor a claim on its potential profits while exposing the investment to risk

A debt obligation through which an investor lends money in return for promised interest and repayment of principal

Transnational consumer-goods company formed in 1929 from predecessor firms including Lever Brothers, whose nineteenth-century soap production linked European factories to African palm-oil networks