Advantages and Disadvantages of Capitalism
Reply to Emily and Sharonee post be constructive and professional in your responses.
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Emily post
When discussing a good example of a common economic system. Capitalism comes to mind as an example to reference. Capitalism from my understanding is not government owned and lacks government intervention. Capitalism means of production is owned by private firms. Which means that the goods and services provided are according to the supply and demand. The pros of Capitalism are the incentives to become rich and the consumers have the right to choose the product they desire. Some of the cons of Capitalism is that monopoly can happened and exploitation of consumers. If monopoly is gained by other firms, they have the power to give low wages.
Reference
- Pros and cons of capitalism(). https://www.economicshelp.org/blog/5002/economics/pros-and-cons-of-capitalism/
A company that I believe is doing good during this pandemic are insurance agencies. For example, Farmers Insurance is the company that I currently work for as an agent. I feel that during this pandemic the office where I currently work has not really lost any business. Because having auto insurance is a law requirement and an important necessity no matter what is going on in the world not too much business has been lost. Farmers Insurance is one of the most reliable but also most expensive insurance companies in our society. But they have a great claim pay out rate and great customer service. I believe that Farmers Insurance does meet all the 4 Ps that are needed to survive this economy during this pandemic which are product, place, promotion, and price.
Sharonee post
In researching for this response to the assignment. I came across and article from “The balance”. This article discusses the pros and cons of a mixed economy. A mixed economy is system that combines private and public enterprise. Mixed economy combines both capitalism and socialism. It also protects private properties and allow more use of capital. A mixed economy has characteristics of market ,traditional, and command economies. It benefits from all three with few disadvantages. Also the government has some control in a mixed economy. The pros of a mixed economy is it protect private property. You have a free market economy. The law of supply and demand and control of prices. The cons are undue influence from private enterprises. Another con is the lack of government support to disadvantage (less competitive) groups. Also unsuccessful regulations may paralyze features of productions.
https://www.thebalance.com/mixed-economy-definition-pros-cons-examples-3305594
The industry I would like to highlight is the automobile industry. The product is cars (automobile). The company Carvana is an new innovated way to purchase a car. The cons of purchasing a car through Carvana, is the prices are slightly higher. You will not be able to test drive the car. Another con is when selling you car – you may get less (compared to private buyer). The pros are the easy -to -use interface to view inventory. No pressure environment or harassing car salesperson. A better return policy and warranty than an average used car dealership. In today economy with the pandemic numerous companies are losing profits. Carvana features an touchless environment. This environment is a safer way during Covid-19. The company has a car vending machine. This is a key feature. Potential customers are attraction to the visual of the car vending machine. This has served as a good advertisement tool and the company success. Carvana is thriving right now by having a good product, competitive prices, and good visual promotion. The biggest seling point during the pandemic is the touchless feature. Also the comfort of buying a car from your home on your mobile device. The link below is a picture of Carvana new car vending in Atlanta.
If you are in a market for a car. Would you consider Carvana as a purchasing option?
Discussion question
Respond to the following in a minimum of 175 words:
- Locate the vision statement (and Mission and Values) of an organization of your choice and explain the vision statement’s importance. Does it seem relevant in today’s environment or is it outdated? Explain your reasoning. What improvements would you recommend for the vision statement?