The Implication Of Free Markets On Global Business

The implication of free markets on global business Introduction Capitalism, socialism, and communism are the main three economic systems. â€Å"Capitalism is an economic system also known as the private enterprise or free market system based on private ownership, economic freedom, and fair competition† (Kelly and Williams pp. 26) Capitalism can be referred to as free markets where there is no government intervention or strict regulations. The principle of capitalism is that â€Å"people and business must free to buy or not to buy according to their wishes. They must be free to choose where to work or not to work and where to live† (Kelly and Williams pp. 27). Productivity, economic growth, and high quality of goods and services are some of the implications of free markets on nations and global business. Main Body Capitalism is based on many principles. Fair competition is one of the principles that Capitalism provides. Since Capitalism provides free competition, monopoly does not exist in capitalist countries. Free competition means many competitors providing to consumers many goods and services. That leads to the fact that high quality of products will be available in the markets due to the fair competition. The United States, Canada, Australia, France, and Switzerland are some of the capitalist countries. It can be noticed that most of the products in world today are from these countries. Such as, cars, technology, and machines. As a result, the system of those countries hasShow MoreRelatedBusiness Development in a Global Market1442 Words   |  6 PagesBUSSINESS DEVELOPMENT IN A GLOBAL MARKET Developing a business opportunity or introducing a new product into the global market place is a risky business at the best of times. Strong and precise business strategies along with extensive market research are the keys for developing a successful global enterprise. 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