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Trends in the Global Business Environment
Executive Summary
This report analyses the difference between communism, socialism and capitalism. Capitalism is an economic system, where individuals can own resources and use skills to monetise transactions for their own benefit. Communism is an economic system, where no one can own resources and production is merely done for the survival of the people. Socialism is the middle ground where the public can own private property but everything is used as a means of production and there is no profit and loss. The government owns all the resources and similar to communism the government plans the economy. The prices of products are decided by the government and are not based on the production value of the product.
Table of Contents
Introduction    4
Capitalism    4
Capitalism businesses    5
Conclusion    7
Reference    8
Explain the differences among communism, capitalism, and socialism and how these different economic ideologies affect the conduct of international business. Provide examples.
Introduction
Capitalism, Socialism and Communism are economic systems. The economic systems main difference is the degree to which the government participates in the activities of the economy. These differences include how the resources are allocated, how the production occurs and how economic activity plays. The first economic system is communism. Communism is the economic system where the idea of private property and the current profit aimed economy with an idea of property owned by the public. In simple terms, it is the absence of money and private ownership. The second economic system is Capitalism. This economic system is based on the idea that individuals or organisations can own goods. The productions of the goods are based on the demand that is created by the consumers. The third economic system is Socialism, which is considered middle ground. This economic system is based on the idea that goods are owned, produced and regulated by the government.
Discussion
Capitalism
Capitalism is the economic system that is currently in place in many countries. Unlike the other two economic systems, the terms of profit and loss are associated more with this system. The concept of private property remains only in Capitalism. Private Properties depict the exchange of property for gain in a monetary sense. This can be seen as a transaction where both parties may not necessarily benefit equally. These transactions between parties are the driving force in the capitalists. The system functions on the principle that the consumers and the owners of the resources have competition for both the dispensing of the products as well as procurement of the product. The transaction of goods that balances the needs of the consumer and the companies are the basis of capitalism and its functioning.
The person who is using the resources provided to them efficiently and provides a service that is required by the public. This service as it is highly needed becomes a high source of income for the person or the company. The profit occurs, when a person incurs an income, higher than that of his current expenditure. Losses occur when the resources are not managed precisely and they are not able to maintain the expenditure of the company.
Capitalism is beneficial for business across the globe. For one, the economic system has the least government interference....