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Capitalism Case

Autor:   •  November 6, 2012  •  Essay  •  781 Words (4 Pages)  •  1,094 Views

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Miguel Beatrice

Capitalism is an economic system in which private individuals and business firms carry out production and exchange of goods and services through complex transactions involved in prices and markets.

By extension called capitalist higher social class of this economic system ("bourgeoisie"), or to the common form would the individual interests of capital owners in both companies, shareholders and patterns, also called capitalism entire social and political order (law, idiosyncrasies, etc..) that orbits the system while structurally determines the possibilities of its content.

Capitalism is based ideologically in an economy in which the market prevails, it is usually given, although there are important exceptions in addition to the controversy over what should be called free market or free enterprise. In it are carried out economic transactions between individuals, companies and organizations that provide products and that demand. The market, through the laws of supply and demand regulates prices under which goods are exchanged (goods and services), allowing the allocation of resources and the distribution of wealth among individuals.

Freedom of enterprise proposes that all companies are free to obtain economic resources and transform them into a new commodity or service to be offered in the market that they have. In turn, they are free to choose the business that wish to develop and when to enter or exit from it. Freedom of choice applies to businesses, workers and consumers, as the company can manage its resources as it sees fit, workers can make anyone work within their capabilities and consumers are free to choose what they want consume, looking to the chosen product meets their needs and within the limits of your income. This in a theoretical context is called capitalist economic calculation.

Competence refers to the existence of a large number of companies or individuals who offer and sell a product (bidders) in a given market. In this market there is also a large number of people or companies (plaintiffs), which, according to their preferences and needs, or buy such products or commodities demand. Through competition is established a "rivalry" or antagonism between producers. Producers seek hoard as many consumers / buyers for himself. To do this, use strategies to reduce prices, improved quality, etc.

The political doctrine that has historically led the defense and implementation of the economic and political system has been the classic economic liberalism and which is considered the founding fathers to John Locke, Juan de Mariana and Adam Smith. The classical liberal thought in economics argues that government intervention should be reduced to a minimum. You should only take care of the legal system that guarantees respect for private property, the defense calls negative liberties: civil and political rights, control of internal and

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