Question 1

Karl Marx theorized that corporate capitalism is a system of ____________.

Accepted Answer

Karl Marx theorized that corporate capitalism is a system of class power, where the bourgeoisie (capitalist class) holds power over the proletariat (working class) through control of the means of production.

Question 2

What power do corporations have in the current era of globalizing capitalism?

Accepted Answer

Corporations have structural power in the global economy, allowing them to leverage different national workforces against each other to optimize costs and conditions.

Question 3

What does it mean to have control over economic surplus?

Accepted Answer

Having control over economic surplus means the dominant class not only controls the means of production and appropriates surplus value produced by a subordinate class, but this control also enables an exorbitant standard of living for the dominant class, places the economic future at their disposal, and can relegate people to positions of unilateral dependence.

Question 4

In 2009, the profits of 1.3 million companies in Canada were claimed by how many giant corporations?

Accepted Answer

The answer of In 2009, the profits of 1.3 million...

Question 5

What is transnational investment?

Accepted Answer

Transnational investment refers to the process where capital becomes concentrated and transnational corporations are the most powerful and are able to play one workforce (or state) against another. It involves investments and operations by companies in foreign countries through the establishment of subsidiaries, affiliates, or branches. This can have significant economic and social impacts on the countries and communities involved.

Question 6

What does the term "compradorization" refer to?

Accepted Answer

"Compradorization" refers to the process where the local capitalists in a country act as agents who are allied with foreign transnational corporations, often at the expense of their own national interests. In the case of Canada, this refers to Canadian capitalists acting as agents for American transnational corporations.

Question 7

In the chapter, it was discussed that Canadian TNCs have a national network of corporate power and are simultaneously interlocked with foreign-based TNCs inside and outside of Canada. What does this trend suggest?

Accepted Answer

The fact that Canadian TNCs are interlocked with foreign-based TNCs suggests an increasing cross-penetration of capital across national borders, indicating a trend of capitalist globalization.

Question 8

Which one of the below is NOT a component of neoliberalism?

Accepted Answer

Neoliberalism emphasizes less government regulation and more free markets, diminished autonomy of national states, and less direct government involvement in the economy, but it does not advocate regulation of capital.

Question 9

What did the investor-rights provisions in the North American Free Trade Agreement (NAFTA) allow investors to do?

Accepted Answer

The investor-rights provisions in the NAFTA allowed investors to sue a government for compensation against measures that deprive them of future profits, also known as Investor-State Dispute Settlement (ISDS). This provision gave corporations significant power over governments and the ability to challenge regulations that may negatively impact their profits.

Question 10

Over the past few decades, there has been a close relationship between what?

Accepted Answer

The passage emphasizes the relationship between concentration of corporate capital and income inequality, suggesting that as more capital becomes concentrated in fewer corporations, income inequality increases.

Question 11

Marx's omission of corporations is a major shortcoming of his economic and political remarks.

Accepted Answer

Marx did discuss the role and impact of joint-stock companies (an early form of corporations) in his analysis, particularly in "Capital Volume III," where he examines how they contribute to the concentration of capital and the centralization of the means of production, which are key components of his critique of capitalist economies.

Question 12

The cross-appointment of directors interlocks boards of major corporations with one another.

Accepted Answer

Cross-appointment of directors refers to the practice of having directors from one company serving on the board of directors of another company. This creates interlocking directorates between the two companies, and is a common practice among major corporations.

Question 13

The two faces of corporate power are economic and religious.

Accepted Answer

Corporate power is typically understood to refer to economic power, but not religious power.

Question 14

Strategic power is rooted in the democratic character of corporate capital, evident in the election of directors by shareholders.

Accepted Answer

Strategic power in corporations is more complex and involves various factors including economic power, control over resources, and influence over decision-making processes. The election of directors by shareholders represents a democratic element, but does not fully encompass the broader concept of strategic power within corporate structures.

Question 15

In practice, corporations are controlled by the propertied few who own large concentrations of corporate shares.

Accepted Answer

This statement is generally true and supported by the concept of concentrated ownership, where a small group of shareholders (often institutional investors or wealthy individuals) hold a significant amount of shares in a company, giving them significant control over its decisions and direction.

Question 16

Allocative power accrues to agents and organizations that control the financial assets that fund new investment.

Accepted Answer

Allocative power refers to the ability to direct resources towards specific investments or projects. As financial assets are necessary to fund new investment, agents and organizations that control these assets hold significant allocative power. Therefore, the statement is true.

Question 17

The notion of hegemony means that the consent of subordinates is not required to rule.

Accepted Answer

The notion of hegemony involves the idea that ruling parties maintain control through the consent of subordinates, rather than through brute force or coercion.

Question 18

Neo-conservatism refers to an economic approach in which national economies revert to old nineteenth-century ideas about the role of governments in the regulation of capitalism.

Accepted Answer

Neo-conservatism actually refers to a political ideology that emphasizes national security, strong defense policies, and interventionist foreign policies, rather than a specific economic approach.

Question 19

In civil society, the ruling class seeks to universalize the interests of capital in profitable accumulation as the general interest of society.

Accepted Answer

In civil society, the ruling class, which includes capitalists, seeks to promote and prioritize their own interests in generating profits and accumulating capital as the interests of society as a whole. This often comes at the expense of the working class and other marginalized groups whose labor and resources are exploited for the benefit of the ruling class. Therefore, the interests of capital accumulation are often presented as the general interest of society, which can be oppressive and exclusionary for many people.

Question 20

The earlier pattern of extremely concentrated corporate capital in Canada was eroded in the post-World War II era and was never re-established.

Accepted Answer

The answer of The earlier pattern of extremely concentrated corporate...

Quiz 2: Corporate Power in 21st Century Canada