Business Ethics: Capitalism
Part I: Capitalism
1.1 Introduction
According to an online article entitled “ Reflections on capitalism” :
The word “capitalism” was popularised by Karl Marx in the middle of the 19th century .It is a social , political as well as an economic system that countries use to guide their development programs and economic policies. Almost all the worlds countries are currently running their economies on capitalist inspired doctrines ,this fact testifies to a great extent of the many advantages and viability of the system of capitalism .
1.2 Advantages of Capitalism
1.2.1 Cheaper and better products
A capitalist economy operates in a “free market”, this is a requirement vital if capitalism is to thrive. A free market is characterized by Businesses which are governed by the laws of supply and demand, not restrained by government interference. As such in a truly free market, naturally Darwin’s theory of survival of the fittest comes into being, that is to say since consumers have access to cheaper and better goods. The wide variety of goods being offered will create a healthy completion among companies which will not only aim to offer quality goods but competitive prices as well. Hence a capitalist economy through competition creates availability of cheaper and better goods.
1.2.2 Economic Growth
Due to the fact that capitalism and the free market promote imports and exports between countries, they create an opportunity for internationally competitive countries to increase their exports relative to their imports thus increasing GDP due to net exports .
An example of such a country is CHINA , its economic growth is mainly due to its net exports which are a result of its competitive prices relative to other countries, without a free market system it is not worthy to say that CHINA would not be where it is today.
1.2.3 It promotes Consumer Activism
Capitalism gives rise to an economy where the consumers can have a say in issues and problems through the voice which is
1.1 Introduction
According to an online article entitled “ Reflections on capitalism” :
The word “capitalism” was popularised by Karl Marx in the middle of the 19th century .It is a social , political as well as an economic system that countries use to guide their development programs and economic policies. Almost all the worlds countries are currently running their economies on capitalist inspired doctrines ,this fact testifies to a great extent of the many advantages and viability of the system of capitalism .
1.2 Advantages of Capitalism
1.2.1 Cheaper and better products
A capitalist economy operates in a “free market”, this is a requirement vital if capitalism is to thrive. A free market is characterized by Businesses which are governed by the laws of supply and demand, not restrained by government interference. As such in a truly free market, naturally Darwin’s theory of survival of the fittest comes into being, that is to say since consumers have access to cheaper and better goods. The wide variety of goods being offered will create a healthy completion among companies which will not only aim to offer quality goods but competitive prices as well. Hence a capitalist economy through competition creates availability of cheaper and better goods.
1.2.2 Economic Growth
Due to the fact that capitalism and the free market promote imports and exports between countries, they create an opportunity for internationally competitive countries to increase their exports relative to their imports thus increasing GDP due to net exports .
An example of such a country is CHINA , its economic growth is mainly due to its net exports which are a result of its competitive prices relative to other countries, without a free market system it is not worthy to say that CHINA would not be where it is today.
1.2.3 It promotes Consumer Activism
Capitalism gives rise to an economy where the consumers can have a say in issues and problems through the voice which is
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