Answer to Question #319932 in Management for Sasuke

Question

As a business owner with a strong entrepreneurial spirit, you have run your company successfully, in South Africa, for the past 10 years, the most challenging of all being the period from 2020 to 2021. You have not only implemented valuable, insightful, and innovative strategies over the years but have also successfully implemented business concepts in each area of your organisation. Select and examine any two economic systems that you think affect businesses most in South Africa. Give five reasons under each system of the impact they have had on your company specifically taking into consideration the King IV report and corporate social responsibility policies in the country and the impact these have had on business practice and have influenced how your company operates. Consider the type of enterprise you operate and the benefits this present to your company.

Answer 1

The two economic systems affecting businesses in South Africa is capitalism whereby Capitalism is an economic system in which capital assets are owned by individuals or corporations through private investment decisions rather than by the government. It is distinguished by the competitive markets that determine prices, production, and distribution of goods and also the mixed economy where by the term "mixed economy" refers to a system that incorporates characteristics of both free-market and command economies. Even in free-market states, the government usually directs the economy in some way. For a variety of reasons, these decisions are made. Main reasons for capitalism include

·        Economic liberty....

·         Economic efficiency.... 

·        Economic expansion.

·        Economic stability...

·        Stability in prices.

Whereas reasons for mixed economy include

·        Equal Control Distribution.

·         Greater Efficiency for Private Firms.

·         Freedom for Private Enterprise to Succeed on Its Own.

·        The Government's Referee Role Is Defined...

·        Poverty has found a safe haven.