Creating a Business & capitalism Doubled spaced that equals five pages - Essay Example

This research paper focuses on capitalism as an economic system and its effects. The types of capitalism and their advantages are also tackled in this document. As a business owner-owning a beauty parlor, critical analysis of how I can use my privately owned business and utilize capitalism to make the world a better place is discussed in details. Also, contained in this paper are the possible disadvantages of capitalists in case it is inappropriately practiced. Capitalism is an industrial term used to describe an economic system in which the centers of production, trade and industry are owned and operated by private individuals and not the state.

All business operations regarding production, distribution and management are entirely carried out by individuals and private sectors. In capitalism systems, the government’s role is the provision of security, both internally and externally and solving disputes through a court of justice in the case of any disagreements in business terms. Other business activities including price determination of goods and services are typically determined by parties involved in the transactions. The degree of capitalism varies from state to state depending on the laws and regulations of the country.

There are different types of capitalism. The existence of capitalism varies according to the region or country’s economic policies. Types of capitalism include mercantilism, free-market economy, social-market economy, state capitalism where the state is in power of production and distribution of goods and services for profit-making purposes, corporate capitalism and mixed economy. There are other minor variants of capitalism including crony capitalism. Crony capitalism describes a type of economy in which the success of a business lies in the relationship between business owners and governmental officials.

Crony capitalism