Why do countries that are committed to open market and capit

Why do countries that are committed to open market and capitalism have publicly owned enterprises?

Solution

Open Market and capitalism has had a huge effect on the process and way of doing business in this world and it has changed the way too and that too on a large extent. There are various reasons for the growth of capitalism as well as open market and we have witnessed the rise of a lot of nations who were developing and today they have made it big. The United States of America and many other developed and industrialized countries have got involved in a different economy that has given birth to the concept of global capitalism and after the eighteenth century the transformation of power to various countries like Germany, Japan, China and many more had made the rise of capitalism possible and effective. Open market or free trade is also a reason or rather a condition which has led to the growth of organizations and business and the rise in economy too.

Business was generally divided in to two avenues, one was the private organizations that did business and this type of business was prevalent more in the western culture and on the other hand there was the publicly owned organizations which was prevalent more in the then Soviet Union and also China. The Publicly owned organizations had stringent law and rules which was set by the government and their functioning was according to that. Due to liberalization in the recent past there were a lot of changes that occurred and the convention that we had got changed. The then Soviet Union has organizations out of which most of them were publicly owned were gradually getting privatized and the west developed a new way of doing business in which they tried to make the organizations publicly owned which had a huge impact on their economy which was positive as well as negative to some extent.

Free trade and the growth of capitalization led to the growth of public enterprises because that had a positive impact on their economy and even the government supported the cause as it was a good measure for the nation as well. In the late 20th century there was again a sudden rise in the number of private organizations that are listed in the stock exchange and this helped the organizations generate a lot of revenue and even the government was happy with such a rise and did not interfere much in the way of doing business and this actually helped the organizations to grow. Open market or free trade in many countries helped the cause because they can import products that they need and also export products accordingly according to their wish. The growth of capitalism also had a huge effect in this context and we see that even Asian countries like China, Japan and India also was there and looking to spread their business globally. So we can understand the importance of open market and capitalism here that has led to publicly owned enterprises and this tend to increase with time because this is what the future of enterprise or organization is and will continue.