Question

• Briefly define, in your own words, the concepts of capitalism and socialism. Then list three pros and cons of each. The specific course learning outcomes associated with this assignment are: • Determine the considerations for and process of ethical business decision making to balance corporate and social responsibilities, and address moral, economic, and legal concerns. • Analyze selected business situations using the predominant ethical theories, such as utilitarian, Kantian, and virtue ethics to guide ethical business decision making. • Use technology and information resources to research issues in business ethics. • Write clearly and concisely about business ethics using proper writing mechanics.

Answer 1

answer-

Capitalism is a type of system in our economy where means of production and distribution are owned by private individuals or firms. It is like a free market where influence and interference of government is very less.

Socialism is the opposite situation of capitalism. In this economic system, state and public owns the means of production and other forms of capital. There is great interference by government.

The pros and cons of socialism and capitalism-

The pros of socialism are first There is equality in society because people have more opportunity to get stake in society. second it reduces the chances of poverty from the society. When there are equal opportunity for people to earn then they increase thier purchasing power by earning fair. Third is free healthcare. Everyone person has access to atleast free healthcare offered by government.This helps those people who can not afford to pay expensive bills of healthcare.

The cons of socialism are first government imposes high taxes which discourages people to invest in business and work.Second, increase government regulations can lead to government failure. for example- increase wage regulations can lead to unemployment.third is politics and unionism could affect owner's business and lead to antagonism between workers and owners of business.

The pros of capitalism are first people are more motivated to produce more because they have incentive to be rich and make profit. This helps people to have access to more kind of products or services. second, It encourages innovation and free choice of consumer what they want. Companies invest in R&D to make new and innovative products and consumers have free will to decide what to purchase or not.third protect society and system from large burecratic government.

The cons of capitalism are there are chances that firms can gain monopoly which increase the chances of unhealthy competition and exploitation of consumer. Second, free market increase the chances of negative externalities like pollution which can affect environment. third there is huge inequality present where riches are more richer and poor are more poorer.