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Through the history of trade from the ancient times, the today’s economic trade practices, strategies and interventions are primarily driven by the integrated capitalist systems. The following are some of the major effects; -Globalization: It is capitalism that has given rise to globalization, whichRead more
Through the history of trade from the ancient times, the today’s economic trade practices, strategies and interventions are primarily driven by the integrated capitalist systems. The following are some of the major effects;
-Globalization: It is capitalism that has given rise to globalization, which even the barriers of trade and allows goods, services and even money to pass without any boundary. This encourages incorporating economies more and concentrating on particular aspects and activities of different economies coupled with globalization.
-Economic Development: The factors of competition and the existence of profit in a capitalist society spur people to create new things, improve on old ways of doing things and enhance productivity. This causes a growth in the economy and its development, which in turn results in increased living standards of a majority of countries.
-Inequality: In as much as an economic arrangement such as capitalism has the means of generating wealth, there are certain scenarios where it can be detrimental. The societal effects of a capitalist system in which a few individuals possess the majority of the wealth are extreme and could manifest in social or political stages.
-Global Supply Chains: Economies based on Capitalism have enabled a situation whereby complex global supply chains are established which means different parts of manufacturing processes are carried out in different geographical locations. This enhances effectiveness but also poses challenges regarding the working conditions, treated of the workers in that more practices will have to be performed and the effect such processes have on the environment.
-Market Capture: Capitalism corporations also have the propensity to influence consumer trends, trade pattern and economic activities of the capitalist economy nation the corporations are derived and controlled, as to the case with the transnational believed corporations.
To sum up, there is the positive and negative impact of capitalist-regulated economies on the global trade structure within the present-day context. The economic growth has to be weighed against the problem of inequality and the issue of environmental sustainability which is a fundamental concern for economic planners and above all political leaders of every nation in every economy.
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