Contemporary Issues

Contemporary Issues

Question No.1.

Examine the extent to which Capitalism is the best Economic system for global business. Are there any other Economic Ideologies that may be a better alternative?

Introduction

The term capitalism refers to the free market system or free enterprise. It is the economic structure due to which people are allowed to utilize their personal property by with least involvement of government. Every individual is free to work on his own choice under the capitalism. Everyone has the right to sell or purchase the services and products on at their desired costs. They are allowed to choose the service providers that are best suitable to them. It is still impossible to achieve the pure capitalism either in Europe or in any part of the world. The exiting situation of capitalism in Europe differs from the capitalists system of other countries globally. It can be said that private property rights and economic freedom have been always provided to the citizens of Europe (Eichengreen, 2008). In wealth creation, market capitalism is considered to be a vey significant component that works as a significant engine. It is estimated that that if continuous its performance, then ultimately Europe would face a severe collapse in its system. Market capitalism is exposed to risk in a number of different ways. The first thing to control the threats of market capitalism is to reduce the gap between rich and poor, and this is only possible when the economy is strengthened. The main reason for the rapid increasing in the threats of market capitalism is the migration of millions of people from poor countries towards rich countries where the government of rich countries are responding with increasingly strident protectionism.

Discussion

The global economic system has turned out to be less transparent and more fragile. This happens due to the inability of the traditional protectors of the society to address the factors. These protectors include all the institutions related to industry, business, or government. It is expected that in near future that the increasing environmental degradation and climatic changes will be effected by economic, social, political consequences. In all certain situations, capitalism plays a vital role in creating wealth through productivity and technological advancement. In this process it is required to stop all the previous practices and introduce new and advance techniques. Technological advancement is assumed as an influencing factor for capitalism. This technological progress also needs to alter the existing practices carried out within economic sectors, industries and factories. It is also important to transform human skills and make them more effective with proper training and guidance. This system encourages the efficient practices and it discourages the less productive and the redundant. This process can be termed as creative destruction process that gives many losers and some winners as well by giving an exposure of risk to traditional beliefs, social values and institutions. Furthermore this procedure is preceded by constant downturns and recessions that causes destruction in lives of people. With the help of capitalism, wealth can be equally ...