Capitalism
is a monetary system in which exchange and production depend on private
ownership and its main motive is increasing of profits. In the market economy
investment plays a significant role with decision making. We are living in a
modernized world where everything works by a single touch. So I totally support
the capitalism as each person on this planet is dependent on the market for
their survival.

The
economic foundation of the capitalism has started in the 16th
century in England. The obstacles for the advancement of capitalists markets
are more of    social, cultural,
political and less of specialized. The British East India Company and the Dutch
East India Company anticipated a critical part that time. However, with the
evolution of money the difficulties of barter system was covered.

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Before
the evolution of money the barter system worked to the fullest. However, there
were many complication in the barter economy. In addition, there was lack of
double coincidence of wants, lack of storage like perishable goods which cannot
be store, problem of exchange, problem of unit of value. Nevertheless, the
barter economy has helped to a great extent but not till the end.

The
evolution of paper money, coins, currency overcomes all the troubles faced by
the barter system. As the countries starting developing in all the fields
whether medical, technical and agriculture which ultimately leads to the growth
in the country. Due to this, the net income of people increase which directly leads
to the developed nation.

In
money the corporation is needed for the development of the country. Capitalism
has been developed in two different forms such as industrial relations and
trade unions. Corporations are generally called public entitles or traded on an
open market elements when parts of their business can be bought in the form  of shares on the stock market this is done as
a method for raising capital to finance the investment of the corporation. The
investors select the executives of the corporation, who are the ones running
the enterprise through a progressive chain of power, where the majority of
financial specialist choices are made at the best and have impacts on those
underneath them.

Industrial
was needed for the growth inside the nations and trade was required for the
inside and outside import and export of the country. Industrial capitalism was
the essential system to profit all levels of society instead of just the
aristocratic class. Wages increased, helped essentially by the improvement of
unions, and the lifestyle furthermore expanded with the abundance of affordable
products being mass-produced. This prompted the improvement of a working class
that began to lift more and more people from the lower classes to swell its
positions. The monetary opportunities of capitalism developed nearby equitable
political freedoms, liberal individualism and the theory of rights. This isn’t
to say, regardless, that each and every capitalist system are politically free
or support individual freedom.

 Furthermore, the barter economy has helped to
a great extend in capitalizing the economy of the world. Each nation share its
good and commodity with each other that results in free trade agreement that
leads to capitalism in economy. As we look back on the survey of the world,
United States seems to be best example. Though, Hong Kong ranks the top in the capitalistic
economy followed by the Singapore and New Zealand. Capitalism was followed by
the globalization in the end of the 18th century. In the time ahead,
the mix economy dominated the industrialized world.

Industrialization
leads to the production of household items by the using economics scale. After
the First and Second World War and the confliction of the British conquest on
India which leads to more of European export. The yield variable natural
resources was notice such as rubber, diamond and coal. Which helped the fuel
trade investment between the imperial power and the United States.

Voluntary
trade is the mechanism that drives action in a capitalist system. The owners of
resources compete with each other over consumers, who in turn rival different
consumers over goods and services. The greater part of this action is built
with the price system, which adjusts free market activity to facilitate the
distribution of resources.

A
capitalist earns the most elevated benefit by utilizing capital goods most
productively while producing the highest value goods or services. In this
system, value is transmitted through those prices at which another individual
voluntarily purchase the capitalists goods or services. Profits are an
indication that less important inputs sources have been transformed into more
significant outputs. By contrast, the capitalist endures losses when capital
resources are not utilized efficiently and rather make less valuable outputs.

During
1930’s the global depression was noticed which ultimately increases the
prominent role in the capitalistic system in the whole world. However, the boom
ended in the late 1960’s and early 1970’s which gave a rise to monetarism.
Monetarism is a modification in the Ronald and Margaret. By the end of 18th
century the relator between the democracy and capitalism was maintained.
Nevertheless, the profit motive is the main region behind capitalistic
economy. 

 By creating incentives for entrepreneurs to
siphon away assets from unprofitable channels and into areas where consumers
most profoundly value them, capitalism has demonstrated a highly effective
vehicle for economic development.

Capitalism
has plays both positive and negative role in the economy. However, the positive
sides far outweigh the negative. In the 21ST century capitalization
and globalization both change the whole world as compare to 16th
century. In subsequent centuries, capitalist production methods have
extraordinarily improved productive capacity. Increasingly and better goods
turned out to be cheaply available to wide population, bringing standard of
living up in previously unthinkable ways. Accordingly, most political theorists
and nearly all financial analysts contend that capitalism is the most
proficient and beneficial system of trade.

Market
completion among the sellers such as increasing profit, market share and sales
volume are the important elements in the economy. “The study of nature cause of
nation’s wealth” is known as economics, which was defies by the father of
economics “Adam Smith” (1776). There has been ups and down in the market in
past few years. 

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