Answer to Question #168260 in Management for VidaL

Question

Reaction paper about Global Capitalism? At least 3 pages

Answer 1

Global Capitalism

Capitalism refers to an economic system in which the economic production means and profits associated with their operations are owned by private entities or individuals (Bieler & Morton, 2018). Global capitalism is characterized by a situation where the private owners of the economic means of production are extremely powerful in the economic sphere because economic decision-making is squarely pegged on them (Bieler & Morton, 2018). In a capitalist market situation, the owners of wealth and means of economic production are the determinants of investment and competition of goods and services in the market. Global capitalist systems constitute money-based social relations between two major components of the economy, i.e. large and system-wide class of workers who are entirely dependent on wages earned through provision of labor, and the other group that constitutes powerful owners of wealth and means of production in the market (Robinson, 2017). Capitalism was first developed in Western Europe and is steadily spreading to other parts of the world as evidenced by constant economic growth that is presently experienced in different parts of the world. Global capitalism has been faced with critic mainly because of the acute ownership of the means of production that is associated with it.

The capitalist system mainly concentrates excess power among the powerful owners of wealth and economic production means, with little consideration given to the workers and consumers that dominate the economic market (Robinson, 2017). In the capitalist economic system, more emphasis is put on the profit rather than the social conditions of the workplace, i.e., production is emphasized at the expense of the happiness and social satisfaction of workers (Bull & Miklian, 2019). Global capitalism is also an engine of inequality, economic instabilities, and corruption in the market because it restricts many people from enjoying its purported freedom of free investment since the market is controlled by few capitalists. However, supporters of the capitalist system, who aren’t many argue that it's beneficial because it causes the production of high-quality goods and services due to competition created in the capitalist market (Bieler & Morton, 2018). Global capitalism is also associated with the trickling of wealth to people who are in a position to invest in various sectors based on the market trends and demand.

 

Reference

Bieler, A., & Morton, A. D. (2018). Global capitalism, global war, global crisis. Cambridge University Press.

Robinson, W. I. (2017). Debate on the new global capitalism: Transnational capitalist class, transnational state apparatuses, and global crisis. International Critical Thought, 7(2), 171-189.

Bull, B., & Miklian, J. (2019). Towards global business engagement with development goals? Multilateral institutions and the SDGs in a changing global capitalism. Business and Politics, 21(4), 445-463.