Briefly describe two different types of capitalism.

Question

What will be an ideal response?

Answer 1

Correct answer varies but includes a description of competitive capitalism, characterized by many relatively small firms common in the late nineteenth century. No single firm or small subset of firms could completely dominate and control a given area of the economy. The capitalism of Marx's day was highly competitive. However, in the late nineteenth century and into much of the twentieth century, this situation changed. Huge corporations emerged and, alone or in combination with a few other similarly sized corporations, came to dominate, or monopolize, certain markets. This was monopoly capitalism. Perhaps the best example is the American automobile industry, which for much of the twentieth century was dominated by three huge corporations--General Motors, Ford, and Chrysler. In recent years, capitalism has certainly become increasingly global. This is transnational capitalism, where it is no longer national but transnational economic practices that predominate. The global flow of automobiles and even money has become far more important than their existence and movement within national boundaries.