Lecture Notes: Significant Economic Systems for AP World History: Modern

1. Feudalism

Definition

• A hierarchical system where wealth, power, and protection are established based on land ownership.

Key Features

• Land-Based Economy: Lords owned land and provided fiefs to vassals in return for military service.
• Hierarchy: Social structure included the king, nobles, knights, and serfs.
• Serfdom: Peasants/serfs worked the land for lords and were tied to the estate.
• Loyalty and Obligations: Based on exchange of labor and military aid for protection.

2. Manorialism

Definition

• An economic system associated with feudalism, focusing on self-sufficient agricultural estates known as manors.

Key Features

• Self-Sufficiency: Manors produced their own food, tools, and clothing.
• Peasant Labor: Serfs and peasants worked in exchange for protection and housing.
• Limited Trade: Minimal trade; most goods were locally produced and consumed.

3. Mercantilism

Definition

• An economic policy aimed at increasing national wealth through strict government trade control.

Key Features

• Colonialism: Colonies provided raw materials and exclusive markets.
• Favorable Balance of Trade: Encouraged exports to accumulate precious metals.
• Government Intervention: Heavy trade regulation, tariffs, and monopolies.

4. Capitalism

Definition

• An economic system where production is privately owned and operated for profit.

Key Features

• Market Economy: Supply and demand determine prices and production.
• Innovation and Competition: Profit drives technological advancement.
• Uneven Wealth Distribution: Leads to social and economic disparities.

5. Socialism

Definition

• A system advocating public ownership to reduce economic inequality.

Key Features

• Economic Planning: Government regulates production and distribution.
• Redistribution of Wealth: Aims to reduce income inequality.
• Taxation: Funds social welfare programs and public services.

6. Communism

Definition

• A system advocating a classless society with communal ownership of property and resources.

Key Features

• Abolition of Private Property: Focus on collective ownership.
• Centralized Economic Control: Government dictates all economic aspects.

7. Mixed Economies

Definition

• Combines capitalism and socialism, blending private enterprise with government intervention.

Key Features

• Private and Public Sectors: Balance economic freedom and social welfare.
• Regulation: Governments correct market failures.

8. Command Economies

Definition

• An economy where the government controls the production and distribution of goods.

Key Features

• Centralized Control: State sets production targets, prices, and resource allocation.
• Lack of Competition: No private businesses.

9. Free Market Economies

Definition

• An economic system where market forces determine production and prices with minimal government intervention.

Key Features

• Economic Freedom: Businesses operate freely.
• Consumer Choice: Individuals drive demand and innovation.
• Inequalities and Failures: Can promote growth but may cause disparities.

10. Globalization

Definition

• The growing interconnection of economies, cultures, and societies worldwide.

Key Features

• Trade Integration: Growth of international trade and multinational corporations.
• Technology: Advances in communication and transportation.
• Cultural Exchange: Diffusion of ideas and goods.