After studying this chapter, you will be able to do the following:

• Define capitalism and identify its major features.
• Describe the historical development of the modern economic system, and explain the key concepts of liberalism, mercantilism, comparative advantage, and hegemon.
• Understand the Bretton Woods System and identify its major features.
• Understand the post–Bretton Woods economic system, and explain the role of neoliberalism within it.
• Define dependency theory and explain its role.
• Identify the group of postcommunist countries developing most rapidly and describe the factors contributing to their growth.
• Identify the key economic actors today and describe how economic trends are affecting their status.