2. Economic Systems Industrialized nations have a variety of economic systems – the two extremes are: Market capitalism or free enterprise in which both the market system and the private ownership of the major means of production, distribution, and exchange are run for the profit of their owners Socialism involves public or governmental ownership and control of these functions to be run for the public interest

3. Alternative Guide to Economic Ideologies Capitalism – You have two cows. You sell one and buy a bull. Totalitarianism – You have two cows. The government takes them and denies they ever existed. Milk is banned. Dictatorship – You have two cows. The government takes both and shoots you. Pure democracy – You have two cows. Your neighbors decide who gets the milk. Counterculture – Wow, dude, there’s like these two cows, man. You have *got* to have some of this milk.

4. Federal Trade Commission Originally created in 1914 to stem the development of monopolies and prevent practices that would lead to unfair competition Is an Independent Regulatory Commission Members are appointed by the President, confirmed by the Senate, and serve staggered, seven-year terms Consists of five members, no more than three of whom can be from the same political party

5. Seminar Questions What is the policy of the Federal Trade Commission (FTC)? What does the FTC regulate? What type of consumer protection is offered regarding Business? Does globalization complicate regulation? Have the challenges of global policy and trade helped or hindered the merger of companies?/

6. FTC Regulation Antitrust policy aimed at preventing one or a small number of firms from dominating all or most of a particular market Class action lawsuits in which an individual or individuals sue on behalf of all people in a similar situation FTC Hearings which have the aura of a courtroom proceeding Regulation of mergers (but can be sanctioned by the courts even if FTC opposes).

7. Globalization & Its Effects International trade has seen several agreements such as North American Free Trade Agreement (NAFTA), General Agreement on Tariffs and Trades (GATT) which created WTO Criticism of WTO – it weakens health, safety, and labor laws in the U.S.; it makes state and local governments conform to WTO policies and standards, thus impinging on U.S. sovereignty Opponents argue that WTO has the power to override federal and state laws on environment and labor

8. Unit 4 Writing Assignment Read Banking Crisis article and prepare 6-8 page paper to include: 2-3 pages on history of how the crisis spread and how the history phenomena was replayed; 2-3 page timeline showing significant events and a history of the policy process 2-4 page analysis containing your inferences on the major implications of your analysis DON’T FORGET QUIZ FOR UNIT 3

9. End of Course Project Your list of resources for your course project is due at the end of Unit 4. See the description of possible sources. BOTH or ALL partners are to submit the list of resources to DocSharing. Approved resource lists will be returned during midterm week (Unit 5)

10. Looking Far Ahead (Unit 5) We will not have seminars the next two Mondays (July 4 th and July 11 th ) because of the holiday and midterm week. There is a written assignment for Unit 5 to write essays on three of four topics: –Government revenue –Environmental policy –Free market regulation of environmental policy –Government-business relationship