How varieties of capitalism framework capture the diversify of European Business Systems
In the essay below, we will look at the various impacts that capitalism frameworks affect the diversity of European Business Systems. Capitalism is the system by which where there is private ownership of the multiple means of production and also the profit produced. There are various characteristics of capitalism which are such as wage labour, private property, and also we have a voluntary exchange for mentioning a few (Jackson, 2011). The capitalism frameworks are basically like when there is a company that primarily maybe owned by the government, but mostly the core capital producers of the company are different people. This makes the government not have most decisions carrying by it; instead, the people who will have possessively to employ arrangements on the company are the capital contributors. Through this, where different people contribute money to the company and act as if they are the main pillars of the company, we call capitalism frameworks, for the most work will be governed by these capital contributors as well as the profit gained from the company. The purpose of this essay will help us to explore the capitalism frameworks, and we will be able to establish the impacts which will help us know how they have diversified the European business systems.
European Business Systems are very diverse in such that they are well seen in the continental markets, but this business most of them have not been brought up to the continental level by the European governments; instead, it is as a result of capitalism. Private ownership in the European market is very evident in such that they have highly diversified and also influenced the business in Europe. Firstly the private property ideal has widely diversified the business systems in Europe is such that the government cannot intervene in these businesses. The private property in Europe is an essential idea that has a significant impact on European companies, and this is because these private properties have to be paid in case there is a business being carried out in that area. In Europe, many lands are mostly privately owned; this means that those who intend to come and carry out companies have to rent these properties. Out of renting these private properties, this means that even if the companies will be owned by the owner in some cases, the property owner where the business seats on will also look as if he or she also holds the business (Ćetković, 2016). The reason why we are saying the companies are mainly being diversified is that, like now, in our case, the property owner will also be acquiring a massive amount of capital from the business, and this is because he or she is the owner of the company. In some cases, the property owner will also be demeaning both the business owner and even the government because they will be, to some extent taking in an ample amount of capital, causing diversification (Lane, 2007).
Besides property ownership, we also have another way in which businesses are being diversified through capitalism. For example, we have in the case where a government is starting an organization or a company, but there is no capital to bring up the business. The government intends to call in for investors who almost in all cases they always come in with their terms and conditions, which they will be able to be receiving back their capital. Due to this call for investors tend to come in and contribute significant money than the government. This means that if the investors provide more capital, they will be more likely to be directors or to be in the directory committee. By being in the directory chairs, it means that they will also contribute to the various decisions, such as how the capital should be divided and how the organizations’ activities will be carried out (Schneider et al., 2009). Through this, it means that the government will be acquiring the profit from the company or the organization, and that is according to the capital contribution. This is another point that shows how capitalism frameworks are diversifying European businesses. This is because by the company accepting the investors to come in who contribute a significant amount to the government, then it means the company will look as if the investors privately own it (Edquist, 2012).
Apart from that we also have competition and co-operation, these also contribute very highly to the diversity of Europe Business Systems. The explanation to this is that because of capitalism, which in many cases, is caused by the private ownership of property, in a more in-depth understanding, we are going to look at how competition and co-operation create diversification in businesses. In the case of entrepreneurs, they always compete with each other to make the highest profit in their business activities (Lane, 2009). We also have another type of competition where buyers still compete to get the best goods and services for their businesses. Besides that, we also have employers who also always compete against each other who always fight to get the highest wages. All this contributes to the capitalist framework, which has an impact on private ownership, and through this, I create diversification of European Business systems (Pedrini, 2016).
Conclusively, it is well evident the capitalist frameworks have a significant impact on diversifying the European Business Systems. The essay has helped me view the different capitalism frameworks that contribute to the diversification of the business systems in Europe. Some of the point that we have come to discover is that capitalism mainly is influenced by private ownerships. We have come to find out that it highly diversifies the business systems through private ownership of private property. Despite that, we have come to discover that various frameworks, such as the ownership of shares, also contribute to the diversification of business systems. And lastly, we have competition and co-operation all thee structures have contributed to the diversification of the European Business Systems.
References
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