Slide 7A
Commerce
Capitalism
Lesson 7
Slide 7B
What Does That Mean?
Term
Definition
capitalism
an economic system characterized by private
ownership of the things used to make, transport, and
distribute products, which is operated for profit.
free market
buyer and seller transactions based on mutual
agreement with no government interference.
property rights
the ability of individuals to accumulate private
property, which property is protected by clear rights
and fully enforced laws.
profit
the money a business makes after all its costs and
expenses are paid.
Slide 7C
What Does That Mean?
Term
Definition
market competition the rivalry among sellers of products or services to
increase profits and sales by offering the most favorable
terms to the consumer.
emerging market
bank a for-profit business that enables people to
accumulate wealth by making deposits of money into
their accounts.
Magna Carta
the royal charter of political and civil liberties granted by
King John in 1215 guaranteeing basic rights.
Slide 7D
What Does That Mean?
Term
Definition
communism
system of government and economy characterized by
the collective ownership of property and no rights of
private property ownership.
socialism
system of social organization in which the production
and distribution facilities are owned collectively by the
people and run by a centralized government; with some
recognition of personal property.
collective ownership
ownership by a group for the benefit of all the members
of that group.
cronyism
The appointment of family members, friends, and
associates to positions of authority without proper
regard to their qualifications
Slide 7E
Reminder
 Remember to visit
http://c21student.com/flashca
rds/
to access the online flashcards!
Slide 7F
Lesson 7 Objectives
 State the key features of capitalism.
 Present one key theory why capitalism took
root in the West.
 Summarize the arguments of capitalism’s
critics.
 Match socially conscious capitalism terms and
tenets with their definitions.
 Tell about the role and goals of the U.S.
Chamber of Commerce.
Slide 7G
Complete this statement:
Capitalism is __________:”
a)
a political system
b)
a form of government
c)
a social movement
d) an economic system
Slide 7H
Feature of Capitalism #1:
Private Ownership of Property
 Recognition of property rights
 Protections by government
 Fosters social and judicial stability
 Reduces risk to encourage investment,
innovation, and exploration
Slide 7I
Feature of Capitalism #2:
Operation of Business for Profit
 Profit promotes innovation
 Profit promotes competition
 Profit promotes qualified work force
 Profit promotes efficiency
Slide 7J
Socially Conscious Capitalists
 Social philosophy and movement holding that
environment profitability, sustainability, and achieving
good are not mutually exclusive
 Investors direct money into companies with ethical
track records in these areas
 Developed in response to criticisms of capitalism as
persistently focused on profit and consumption,
exploitive of workers, the environment, and other evils.
Slide 7K
Emerging Markets
 Represents an expansion of capitalism
 Emerging markets are in all areas including
Asia and Africa, South America, and
Eastern Europe
 Countries are not yet as politically, judicially,
or economically stable as older markets
 Higher risk = higher profit
 www.emergingmarkets.org
Slide 7L
The Big Picture
Capitalism is an economic system based on property rights and
profit. It’s not perfect, but in spite of its flaws, commerce
it.
Capitalism has plenty of critics, but commerce thrives under
capitalism. It’s hard to find a more compelling reason for the
success of capitalism than property rights. These promote a just,
accessible, and predictable legal system, social stability, and
foster competition and innovation. The protection of property
reduces risk of loss, encouraging the pursuit of wealth. SoCap is
a philosophy and movement holding that profitability and social
responsibility are compatible. New capitalist markets are
emerging all around the globe which present excellent, but often
riskier investment opportunities.
Slide 7M
Ponder and Predict
 Have you ever noticed that certain types of
businesses tend to gravitate toward a
particular geographic area? For example, in
Atlanta, Georgia, there are over 200 health
info tech companies. In Raleigh, North
Carolina, there’s an inordinate number of
video game developers and production
companies. Is the concentration of similar
businesses within a particular region by
coincidence or design?