One of the basic premises of a capitalistic economy is the ownership of private property. This includes the ownership of private companies, in part or in entirety. What effects can the ownership of a significant part of a private firm by the government have on the firm's decision-making process and on the economic system in general? Explain your answers with examples.© BrainMass Inc. brainmass.com October 25, 2018, 6:22 am ad1c9bdddf
Since the guiding principle of capitalism is that of individual rights where individuals are free to compete and profitably gain from production, when government is directly involved on firms' decision-making process and on the economic system in general, it politicizes the operation of such firms. Note that capitalism permits the individual towards private investment, while the government usually acts in the best interest of the majority. Where there is generally no government intervention, capitalism thrives by giving provisions to individuals to own as well as utilize wealth any ...
Capitalistic economy ownership is examined.
Is China a capitalistic or socialistic economy? Why do you think it is such?
Read through and prepare the response to the statement below:
In the last 30 years, China has changed significantly, both politically and economically. The term 'one country, two systems' is often used to describe the unique development of this country. Chinese products can be found not only in Asia but all over the world. Chinese investments are not limited to the region, but are reaching places from Africa to the U.S. Read about these changes using current academic literature and business newspapers (Financial Times, Wall Street Journal, Business Week, The Economist). Based on your current knowledge of economic systems, answer the following question:
Is China a capitalistic or socialistic economy? Why do you think it is such?View Full Posting Details