Question

Discuss the Market Capitalism and Dominance Model in the BGS (Business Government Society) Field. 20 marks

Answer 1

Business Government Society (BGS) Field

This field comprises three words namely the business, government, and society.

Business - It means the institutions and their actions for the sake of wealth. It is responsible for generating wealth in the economy.

Government - It means a process in a society that is responsible for making and enforcing policies and rules for the welfare of society.

Society - It means a network of human relations that gives birth to ideas in the competitive economic environment.

Market Capitalism Model

The market capitalism model within the business-government-society model reflects those businesses which operate within the business environment and answerable mainly to powerful economic forces. In this model, the market acts as a gap between business and non-market forces.

In this model, it is assumed that the intervention of the government in economic life is based on laissez-faire. It is also assumed that there are many producers and consumers in the competitive market and individuals can own private property and freely risk investment.

However, it is criticized on the grounds that it results in the increased strength of base value. Many economist were of the view that this model will increase prosperity but also it will bring inequality.

Dominance Model

In this model, both business and government dominate masses that enhance the development of the few. The model requires proper measure which is based on profit by corporate performance. The Dominance model describes businesses as the most powerful force in society as it controls the wealth.

This model is criticized on the grounds that it brings prosperity but with an increased level of inequality. It gives birth to greed and ruthlessness among businesses and businesses for the sake of their own interests will eventually harm the resources.