CHAPTER+OUTLINES

== = Chapter 5: Government and Legal Influences =

= **Democracy**: is a government system in which the nations citizens hold political power. =

= **Totalitarianism**: is a type of government system in which citizens have no influence on the government policies and laws. =

= **Theocracy**: is a type of totalitarian government whose leaders claim to be inspired by divine guidance. =

= **Free trade zone**: is a place where people can buy goods from other countries without paying extra taxes. =

= **Free trade agreement**: is a treaty between countries in which the countries agree to not charge taxes, duties, or tariffs on goods that they trade. =

= **Common law:** is a set of laws based on local customs, traditions and precedent. =

= **Civil law:** is a set of codes based on broad legal principles. it is the basis of law in many countries, including Germany, France, Japan,and Russia. =

= **Theocratic law:** is a set of laws based on religious teachings. =

= **Liability**: is legal responsibility for the financial cost of another persons losses or injuries. =

= **Labor laws:** =
 * = minimum wage rate =
 * = length of the work week and overtime =
 * = hiring, filing, and layoff policies =
 * = the right to form a labor union =
 * = the right to strike =

= **Intellectual property**: is an original work fixed in a tangible medium of expression that can be copyrighted, patented, or trade marked. =

= **Intellectual property protection:** =
 * = copyright =
 * = trademark =
 * = patent =

= **Litigation:** is the legal process used to resolve a dispute through the court system =

= **Mediation**: is a process of intervention between conflicting =

**Chapter 6 Outline**
The Economy and International Trade

Economics is the study of how society chooses to use resources to produce and distribute goods and services for people's consumption.

Types of Economic Systems

Market Economies: An economic system in which economic decisions are made in the marketplace Supply: the amount of goods and services that producers provide at various prices Demand: The amount of quantity of goods and services that consumers are willing to buy at various prices. Profit: Companies make profits when the prices they charge are greater than the costs. Command Economies: An economic system in which a central authority makes all key economic decisions. Mixed Economies: An economic system in which the marketplace determines some economic decisions and the government makes some decisions.

Economic Resources:

Natural Resources 1) Renewable: raw materials that can be replaced. These include fish, seaweed, and in some cases, water. 2)Nonrenewable: resources that will not grow back. These include iron, ore, coal, oil, diamonds, gold, and other minerals.

Human Resources:

Skilled: Workers with more education Unskilled: Workers with less education Physical: Jobs that require physical labor often require unskilled and semiskilled workers. Mental: Jobs that require special knowledge, negotiation skills, and creativity.

Geography and International Trade

Topography: refers to the physical surface features of a geographic area. Cartography: The science or art of mapmaking Population Density: a measurement of the number of people living in a geographic area. Proximity: the physical nearness of one thing to another.

= Chapter 7 = Money - anything that people accept as a form of payment The characteristics of money are acceptability, scarcity, durability, divisibility, and portability. Acceptability: Accepted as such by a group of people. Scarcity: there is a short supply of a product, causing the product to become more valuable. Durability: An item will not easily spoil or become damaged. Divisibility: Divide something into smaller units. Portability: Small enough item that people can carry around easily.

3 Main Uses Of Money 1) Measure of Value-tells you what you are buying is word 2) A Medium Of Exchange-Money works only if people are willing to trade goods or services for it. 3) Savings Mechanism-Some people save gold because they believe it will hold value in the future.

Currency is the form of money used by a specific country or region

Currency Exchange Rate is the rate at which one's country currency can be traded for another country's currency.

Hard Currency: Currency that can be exchanged for other currencies at uniformities in financial centers around the world.

Soft Currency is an unstable currency that is not exchanged at major financial centers.

Currency Value Fluctuation is the change in value of one country's currency when it is traded for another country's currency.

Compensate: Power people are likely to buy something to make up for a loss.

Risk is the possibility of loss when there is uncertainty associated with a risk present in day to day buying and selling processes between companies.

Exchange Rate Risk: Occurs when the currency exchange rate fluctuates as a transaction take

Transaction Risk: A risk associated with a buyer making installment payments on a purchase.

Insurable Risk: A risk that insurance companies will cover including an "act of God" and other less random events.

= The WORLD OF MONEY =

In the video how stuff works and money exchange In euro when you exchange their money to Indian rupees suppose you have 570 euros and you want to exchange for rupees it will come out to be way more in rupee than euros. 570 euros is worth 30,800.98 rupees.1.00 in INR money is worth 0.0229885 US dollars. Wow that's very little. But one US dollar is worth 43.5 INR. For two different currencies there are two exchange rates you can divided one by either rate to find the other rate this is because the rates are reciprocals of each other. I find it interesting how money can get exchange for a different rate in another country.

=**How Money is Made**=
 * Money is made in the money factories one in Washington D.C and the other In Texas. Together they print over six hundred million dollars a day. Money is printed on special linen cotton blend with tiny red and blue fibers in it. There is micro printing on the bottom of it and a fine line pattern to make the bill difficult to scan on a computer. i find it really awesome how the money making process works.**

=**Virtual Money Museum**=
 * Through the 1800 almost any organizations can print their own their own money. There use to been 30 thousands different currency. The banks used to not have enough money to give to people when they deposit. I feel like the world would not be nowhere with money. We need money for everything we do in the World. I belive that currency is Very important.**