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Paper 1 - The United States is primarily a capitalistic...

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The United States is primarily a capitalistic economy, which leads to numerous advantages within the economy. Capitalism, by definition is an economic system in which property resources are privately owned and markets and prices are used to direct and coordinate economic activities (McConnell G-2)). This allows privately owned manufacturers and businesses to use whatever techniques they prefer in order to produce and sell products and services. Manufacturers and businesses in countries with a socialistic economy do not have to ability to do this, because they are not privately owned, which does not allow them to choose how certain things are produced. One common technique used in capitalistic economies is the use of economic specialization. “Economic specialization occurs when individuals or nations concentrate their production on fewer kinds of goods and services than they consume (Specialization 1). This economic specialization is used to increase exports from that nation. When specialization and international trade is
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Paper 1 - The United States is primarily a capitalistic...

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