Capitalism Continues to Flourish

2254 Words9 Pages
This paper discusses the idea that capitalism is not dead but it continues to flourish. Capitalism is a market approach wherein the government allows the penetration of foreign companies to acquire certain public companies to assure the economic growth of the country. Thus, the capital structure is defined as the proportion between equity and debts of a company as a whole. The structures of a business are dependent on the different economy status of a country. Thus when economy is in good condition, expect capital structure to be smooth flowing and that debts is low as there is increased in profits for the business with the good economic standing of the country. Mitt Romney endorses private equities which is favorable for economic and also governmental development because flow of wealth will be easier. Developed countries of the world like the United States and Japan are pushing countries of the developing world towards the adoption of policies related to the liberalization of foreign investment and trade and robust laws regarding a competent capital structure as a whole. Policies of the government in terms of economic liberalization affect the capital structure of a business in the end. It is valuable to note however that these developed countries have avoided polices mentioned at the time when they are rapidly developing. As such, the drive towards the achievement of economic liberalization depends on the argument that the optimal way of raising the living standards
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