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1 The New Capitalism In the historical development of the united states its economic system has evolved from pure capitalism to mixed capitalism. During the colonial period pure capitalism. During the colonial period pure capitalism functioned through the cottage industry. As an independent business person each cottage controlled the factors of production and took the risk of producing the products for sale at the market place. What ever resources were used in the production of product6s came from the land. Labor was supplied by the family. Tools and equipment were also part of the capital resources of the cottage environment. With the advent of the industrial revolution. Pure capitalism began to change, eventually to disappear. Now there is evidence of a rebirth in Hong Kong and the United states. in the face of the rabidly changing world a from of almost pure capitalism has emerged. The British colony of Hong Kong is a thriving cottage industry. Each household unit is an independent entrepreneur blending the factors of production into finished goods for sale in the international market place. Clothing, toys and cloth goods are the specialty items of the near relative of pure capitalism. A second potential rebirth of the cottage industry has been discussed for America with the development of personal computers many futurists predict5 thriving cottage industry here. In this scenario a person would no longer commute to work but would stay at home and transact business the new capitalism. Questions 1. Why do you thing the cottage industry in Hong Kong has emerged in the face of industrialization in the world ? 2. Why do you think the possibility of a cottage industry is in the united states ? 3. Which industries would most likely be adaptable to the cottage approach ? 4. What factors would have to change to see this become a reality ? Case 1.2 Conce3aled Capitalism An economic phenomena is taking place in the Soviet Union in recent years to has become known that...
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