financial scandal

1) F. Hoffmann-La Roche Ltd.
Type of Crime: AntitrustCriminal
Fine: $500 million
12 Corporate Crime Reporter 21(1), May 24, 1999

the swiss pharmaceutical giant pled guilty and agreed to pay a $500 million fine for leading a "world wide conspiracy."They raised, fixed prices and allocated market shares for vitamins sold in the U.S. and other countries. this lasted about 10 years it affected the vitamins used as nutritional suppliments. vitamin premixes used to enrich processed foods where also affected, the department said.

Capitalism replaces Mercantilism (answers)

1a) capitalism-An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.

1b) merchantalism-The theory and system of political economy prevailing in Europe after the decline of feudalism, based on national policies of accumulating bullion, establishing colonies and a merchant marine, and developing industry and mining to attain a favorable balance of trade.

2) the wealth of nations was published by Adam Smith in 1776.

3)Economic progress depends upon a trinity of individual prerogatives: pursuit of self-interest, division of labor, and freedom of trade.

4) The wealth of nations changed the role of government in buisiness because of the free interprise system he had ideas about. It worked for the american colonists then and today. He had ideas about an economic system where buisiness would run without government control.