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Copy of Varieties Of Capitalism

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on 17 November 2013

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Transcript of Copy of Varieties Of Capitalism

A Critique of Varieties Of Capitalism
Issue of Diversity
Goes beyond the "modernisation theory"

Greatest Weakness ..(Howell 2003, Blyth 2003)
Lack of variety

binary classification
depends on the degree of market coordination with LME at one end and CME on the other.
Issue of Diversity
Private Property Rights
The privilege that entitles people to own and control their possessions as they wish.

Privatization
A key feature in private property rights.

The transition from a publicly traded and owned company to a company which is privately owned and no longer trades publicly on a stock exchange. When a publicly traded company becomes private, investors can no longer purchase a stake in that company.
Voluntary Exchange
The act of buyers and sellers freely and willingly engaging in market transactions.
Transactions are made in such a way that both buyers and sellers are better off after the exchange than before.
Varieties Of Capitalism
Coordinated Market Economies
Liberal Market Economies
Definition
Who
controls the economy
?
Rotate axis and drag frames
to change balance

An economic and political system in which a country's trade and industry are controlled by private owners for profit.
What is V.O.C
Where is Capitalism?
How does it work for the
People
?
The firm as the focal point of analysis
Overlooks Labor
Underestimates the role of the state
Its Claim..."a dynamic approach"
The firm as a focal point
seek a basis for comparison in the organisation of the private sector, ie.,
large firms.

VoC’s
“relational view”
of the firm allows the approach to bring in other actors, i.e.,
financiers
employees
unions, and
other firms (including suppliers as well

Competition:
The struggle among sellers to attract consumers while lowering costs.

Capitalism thrives on competition.

The results of sellers lowering prices and buyers competing to find the best products at lower prices is that goods and services are produced at lower costs and are allocated to those who are willing to pay for them.
Overlooks Labor
underplays the role that firms and employer (or business) organisations play in the coordination of the economy. For instance,
Thelen (2001), in a VoC perspective,


Overlooks the State
Why is it so
successful
?
Capitalism is a type of economy in which means of production are privately owned. Citizens work and earn income that they use to buy products and services from sellers. The sellers earn money from their products which brings satisfaction to the consumers who in part work to create more products and services. The whole economy runs itself with minimal government intervention needed.
Capitalism works by placing control and responsibility in the citizens.

Capitalism encourages ambition, and by taking proactive steps in work and risks a citizen can earn more and work their way up which is from having a
Profit Motive
. This works in part with
Private Property

Rights

which allows each individual to own property. The thought of being able to work and grow as a person instead of being given everything by the government is how capitalism thrives.
Capitalism is very harsh and unforgiving, one or two mistakes can send a person straight to poverty and unemployment, and the worst part is that nobody will help them back up.

However, it is also extremely rewarding and pushes each person to literally strive for the best they can be because in capitalism, almost anything is possible.

Combined with an educated and disciplined population, this type of economy can grow at astonishing speeds and last for long periods of time.
In capitalism, the people and businesses control everything through supply and demand, ensuring that the market meets satisfaction and profit on both sides. Government intervention may be needed in certain situations, such as public goods like roads and military, but otherwise extreme government intervention should be a last resort in desperate situations.
Political Cartoon
This cartoon is related to what could happen if the government was not allowed to interfere at all.
Industrial countries like the United States, Great Britain, Australia, and Canada use Capitalism to a certain extent. They are not fully capitalist countries, but use some of the basic principles that it has to offer. In other words, they have a mixed economy, or an economic system combining private and public enterprise.
How does it work in the
Economy
?
On the economic side of view, the consumers have a large role in prices and choice of products. The economy is based on a supply and demand concept; the more a consumer wants a product, the more they are willing to pay, and the more the consumer is willing to pay affects how much of that product is supplied. If consumers have a high demand for a product, suppliers will give more at a higher price that still meets satisfaction. However, if consumers lose interest and demand, suppliers will give less of it and at lower prices. This creates a lack of surplus or shortages that keeps everything in check.
References
the VoC approach underestimates the role of the state.

Hall and Soskice (2001), argue that

adjustment today is firm-led (Hall and Soskice 2001a). The
the VoC approach underestimates the role of the state.

Hall and Soskice (2001), argue that

adjustment today is firm-led (Hall and Soskice 2001a). The
Overlooks the State
Full transcript