Governments, Market and International Trade

Group # 1 1Presented To: Ma’am Amna Majid
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Dr. Keith Y.N. Ng
Ph.D., MBA, MCIM
THINKING AND MANAGING ETHICALLY
The Business System: Government,
Markets And International Trade
The Business System: Government,
Markets and International Trade
Business Ethics: Concepts and
Cases

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Globalization
֎The process by which t he
economic and social syst ems
of nat ions are connect ed
t oget her so t hat goods,
services, capit al and
knowledge move f reely
Group # 1 Presented To: Ma’am Amna Majid
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Globalization
֎ Threat s
– Local business wiped out
– Worker s laid of f
– Lower envir onment al st andards
֎ I ssues
– Globalizat ion and f ree t r ade VS
Government int er vent ion in economic
af f air s
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Economic System
֎The syst em a societ y uses
t o provide goods and
services it needs t o
survive and f lourish.
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Economic Systems
֎ The economic syst em accomplishes
t wo basic economic t ask:
– The t ask of producing goods and
services, which requires det ermining
what will be produced, how it will be
produced and who will produce it .
– The t ask of dist ribut ing t hese goods
and services among it s members
which requires det ermining who will
get what and how much each will get .Group # 1 Presented To: Ma’am Amna Majid
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8

Economic Systems
֎ To accomplish t hese t wo t asks,
economic syst em rely on t hree
kinds of social devices:
– Tradit ion-based societ ies
– Command economy
– Market economy
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Economic Systems
Tradition-Based Societies
֎ Small and rely on t radit ional
communal roles and cust oms t o
carry out t he t wo basic economic
t asks.
֎ I ndividuals are mot ivat ed by t he
communit y’s expression of
approval or disapproval and t he
communit y’s product ive resourcesGroup # 1 Presented To: Ma’am Amna Majid
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10

Economic Systems
Command Economy
֎ Based primarily on a gover nment
aut horit y (a per son or a gr oup)
making t he economic decisions
about what is t o be produced, who
will produce it and who will get it .
֎ Pr oduct ive r esources such as land
and f act or ies ar e owned or
cont r olled by government and are
consider ed belong t o t he public.Group # 1 Presented To: Ma’am Amna Majid
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11

Economic Systems
Market Economy
֎ An economic syst em based
primarily on privat e individuals
making t he main decisions about
what t hey will produce and who
will get it .
֎ Product ive resources like land
and f act ories are owned and
managed by privat e individuals.
֎ Essent ially on Supply and
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Economic Systems
Mixed Economy
֎ An economic syst em consist ing
t he element s of t he t hree
economic syst ems:
– Tradit ion-based societ ies
– Command economy
– Market economy
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Free Markets
֎Market s in which individuals
are able t o volunt arily
exchange goods wit h ot hers
and t o decide what will be
done wit h what he or she
owns wit hout int erf erence
f rom government .Group # 1 Presented To: Ma’am Amna Majid
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Issues Today
֎Argument s f or and against “f ree
market s” wit hin a nat ion
֎Argument s f or and against “f ree
t rade” bet ween nat ions
֎I deology is a syst em of normat ive
belief s shared by members of some
social group.
– J ohn Locke (based on moral
right s)Group # 1 15Presented To: Ma’am Amna Majid
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Free Markets And Rights:
John Locke
֎J ohn Locke (1632-1704), an English
polit ical philosopher developed t he
idea t hat human beings have a
“nat ural right ” t o libert y and a
“nat ural right ” t o privat e propert y.
֎Locke argued t hat if t here were no
government s, human beings would f ind
t hemselves in a st at e of nat ure and
would be f ree f rom t he law of nat ure.Group # 1 Presented To: Ma’am Amna Majid
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Free Markets And Rights:
John Locke
֎ The t wo nat ural r ight s t hat f r ee mar ket s
are supposed t o pr ot ect ar e:-
– t he r ight t o f r eedom
– t he r ight t o pr ivat e pr opert y
֎ Fr ee mar ket s pr eser ve t he r ight t o
f reedom f or each individual t o volunt arily
exchange goods wit h ot her s f ree f r om t he
coer cive power of gover nment .
֎ Fr ee market s preserve t he r ight t o privat e
pr opert y f or each individual t o decide whatGroup # 1 Presented To: Ma’am Amna Majid
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17

Locke’s State of Nature
֎All are f ree and equal
– each individual would be equal t o
ot hers
– f ree f rom const raint s
֎Each person owns his body and
labor, and what ever he mixes his
labor int o.
֎People agree t o f orm aGroup # 1 Presented To: Ma’am Amna Majid
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Lockean Rights
֎ The right t o lif e, libert y and propert y
֎ I ndividuals have an absolut e right t o do
what ever t hey want wit h t heir propert y
and t he government has no right t o
int erf ere wit h or conf iscat e an
individual’s privat e propert y even f or
t he good of societ y (Fif t h Amendment
of US Const it ut ion)
– e.g. Land Acquisit ion Act
֎ When a person expends labor/ ef f ort t o
creat e or improve somet hing, t hat
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19

Criticism of Lockean Rights
Locke’s cr it ics f ocus on f our weakness in his
argument :
1. The assumption that individuals have
natural rights: This assumpt ion is unproven
and assumes t hat t he right s t o liber t y and
pr opert y should t ake precedence over all
ot her r ight s. I f humans do not have t he
overr iding r ight s t o liber t y and proper t y,
t hen t he f act t hat f r ee market s would
pr eser ve t he r ight s does not mean a gr eat
deal.Group # 1 Presented To: Ma’am Amna Majid
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20

Criticism of Lockean Rights
Locke’s cr it ics f ocus on f our weakness in his
ar gument :
3. The conflict between Lockean rights and
justice: Fr ee mar ket s cr eat e unj ust
inequalit ies, and people who have no
pr oper t y/ who ar e unable t o wor k will not be
able t o live. As a r esult , wit hout gover nment
int er vent ion, t he gap bet ween r ichest and
poor est will widen. Unless gover nment
int er venes t o adj ust t he dist r ibut ion of
pr oper t y, lar ge gr oups of cit izens will remain
at a subsist ence level while ot her s gr ow ever
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21

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Free Markets And Utility:
Adam Smith
֎ Adam Smit h (1723-1790), t he “f at her
of modern economics” is t he originat or
of t his ut ilit arian argument f or f ree
market .
֎ Adam Smit h argued t hat when privat e
individuals are lef t f ree t o seek t heir
own int erest s in f ree market s, t hey will
inevit ably be led t o f urt her t he public
welf are by an invisible hand.
֎ Invisible Hand: According t o AdamGroup # 1 Presented To: Ma’am Amna Majid
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23

Adam Smith
֎ Second maj or def ense of unregulat ed market s
rest s on t he ut ilit arian argument t hat unregulat ed
market s and privat e propert y will produce great er
benef it s t han any regulat ion could.
֎ I n a syst em wit h f ree market s and privat e
propert y, buyers will seek t o purchase what t hey
want f or t hemselves at t he lowest prices t hey can
f ind:
– Privat e businesses will produce and sell what
consumers want ;
– Sell at lowest possible prices
֎ The f ree market coupled wit h privat e propert y,
ensures t hat t he economy is producing what
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24

Adam Smith
֎ I n a compet it ive market , a mult iplicit y
of privat e businesses must all compet e
wit h each ot her f or t he same buyers.
֎ To at t ract cust omers, each seller is
f orced t o sell what t he consumers want
and t o drop t he price as low as possible.
֎ The compet it ion produced by a mult iple
of self -int erest ed privat e sellers
serves t o lower prices, conserve
resources, and make producers respond
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25

Adam Smith
֎ Smit h argued t hat a syst em of compet it ive market s
allocat es resources ef f icient ly. Examples:-
– Natural Price: The price t hat covers t he price of
producing a commodit y including t he going rat e of
prof it s in ot her market s.
– When a supply of a cert ain commodit y is not enough
t o meet demand, t he buyers need t o pay a higher
price t han t he nat ural price.
– Producers of t hat commodit y will reap prof it s
higher t hen t hose available t o producers of ot her
commodit ies.
– The higher prof it s will induce producers of ot her
product s t o swit ch t heir resources int o t he
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26

Adam Smith
֎ Smit h argued t hat a syst em of compet it ive
market s allocat es r esources ef f icient ly.
Examples:-
– Supply of a commodit y is great er t han t he
quant it y demanded, it s price f alls, inducing it s
producers t o swit ch t heir resources int o
product ion of more prof it able commodit ies.
֎ The mar ket allocat e r esour ce so as t o most
ef f icient ly meet consumer demand t hereby
promot ing social ut ilit y.
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27

Adam Smith
֎ According t o Adam Smit h, t he best
policy of a government t o advance
public welf are is t o do not hing – t o let
each individual pursue self -int erest in
‘nat ural libert y’, so he is f ree t o buy
and sell what ever he wishes.
֎ Any int ervent ions in t he market , by t he
government can only int errupt t he self -
regulat ing ef f ect of compet it ion and
reduce it s many benef icial
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28

Criticisms of Adam Smith
Smit h' s ut ilit arian argument is crit icized
f or making unrealist ic argument s:
֎ Smit h assumes t hat monopoly does not
exist .
– For ces of supply and demand will f orce
pr ices down t o t heir lowest levels.
֎ Smit h assumes t hat all relevant cost s
are paid by manuf act urer.
– Pollut ion is an example of using social
resour ces wit hout paying.
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29

Criticisms of Adam Smith
֎ Smit h assumes t hat human beings are
solely mot ivat ed by self -int erest ed
desire f or prof it .
– Somet imes caring can lead t o a bet t er-
of f sit uat ion.
֎ Some degree of economic planning is
possible and desirable.
– All we need t o know t o set appr opr iat e
pr ices ar e repor t s on t he sizes of t he
invent or ies of producers.Group # 1 Presented To: Ma’am Amna Majid
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30

Keynesian Criticism of Adam
Smith
֎ Most inf luent ial crit icism of Adam Smit h’s
classical assumpt ion came f rom J ohn Maynard
Keynes (1883-1946).
֎ Smit h assumed t hat wit hout any help f rom
government , t he aut omat ic play of market
f orces ensure f ull employment of all economic
resources including labor.
֎ Aggregate Demand: Keynes argued t hat t he
t ot al demand f or goods & services is t he sum
of t he demand of t hree sect ors of t he
economy: household, businesses andGroup # 1 Presented To: Ma’am Amna Majid
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31

Smith
֎ This mismat ch bet ween aggregat e demand and
aggregat e supply will occur when household pref er
t o save some of t heir income in liquid securit ies
inst ead of spending it on goods and services.
֎ When aggregat e demand is less t han aggregat e
supply t he result is a cont ract ion of supply.
֎ Businesses realize t hey are not selling all t heir
goods and services t hey will cut back on
product ion – causes cut back on employment .
֎ As product ion f alls t he incomes of household also
f all but t he amount households are willing t o save
f all even f ast er:
– The economy reaches a st able point of
equilibrium at which demand equals supply but
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32

Smith
֎ According t o Keynes
– Gover nment can inf luence t he pr opensit y t o
save via monet ar y (money supply) and f iscal
(t ax and gover nment spending) policies, and
t her ef or e can lower t he level of
unemployment .
– Gover nment can pr event excess savings
t hr ough it s inf luence on int er est r at es by
r egulat ing t he money supply. The higher t he
money supply, t he lower t he int er est r at e
– Gover nment can inf luence t he household
savings be r aising or lower ing t axes
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33

Smith
֎ These views became t he kernels of
Keynesian economics
– The t heory which holds t hat f ree
market s alone are not necessarily t he
most ef f icient means f or co-ordinat ing
t he use of societ y’s resources
֎ During 1970s, Keynesian remedy f or
unemployment (increased government
spending) had t he expect ed ef f ect of
creat ing increasing inf lat ion but did notGroup # 1 Presented To: Ma’am Amna Majid
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34

Smith
֎ Dur ing t he 1970s St agf lat ion (due
t o union syst em) cont radict s
Keynes’s view.
֎ Post- Keynesian school: Economist s
who have sought t o challenge and
modif y Keynesian economics
believed t hat gover nment must also
curb t he power of lar ge oligopolist ic
gr oups.Group # 1 Presented To: Ma’am Amna Majid
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35

The Utility of Survival of the Fittest:
Social Darwinism
֎ The doct rines of social Darwinism
named af t er Charles Darwin (1809-
1882), who argued t hat t he various
species of living t hings were evolving
as t he result of t he act ion of an
environment t hat f avored t he
survival of some t hings while
dest roying ot hers.
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36

Social Darwinism
֎ Social Darwinism - belief t hat economic
compet it ion produces human progress.
֎ Darwin claimed t hat species change
gradually because only t he “f it t est ”
survive t o pass t heir f avorable
charact erist ics on t o t heir progeny.
– I ndividuals whose aggressive business
dealings enable t hem t o succeed in t he
compet it ive world of business are t he
‘f it t est ’ and are t he best .
– Free compet it ion enriches someGroup # 1 Presented To: Ma’am Amna Majid
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37

Social Darwinism
Social Darwinist s argued t hat :
֎I f Government int erf ere wit h t he
compet it ions – t hey would unint ent ionally be
impeding progress.
֎Government must not lend economic aid t o
t hose who f all behind in t he compet it ion f or
survival and if t hese economic misf it s
survive, t hey will pass on t heir inf erior
qualit ies and human race will decline
֎Economic compet it ion ensures t he ‘best ’
f irms survive and t he economic syst em will
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38

Social Darwinism
֎ Crit icism:
– The survival of humanit y depend on
cooperat ive at t it udes and mut ual
willingness of people t o help each
ot her, not a rut hless disregard f or
ot her human beings which might
advance t he business world.
– Naturalistic fallacy: The
assumpt ion which implies t hatGroup # 1 Presented To: Ma’am Amna Majid
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39

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Free Trade and Utility:
David Ricardo
֎ Count ries dif f er in t heir abilit y t o
produce goods (Adam Smit h).
֎ One count ry can produce a good more
cheaply t hen anot her and it is said t o
have an ‘absolut e advant age’ in producing
t hat good.
֎ These cost dif f erences may be based on
dif f erences in labor cost s and skills, in
climat e, in t echnology, in equipment , in
land or in nat ural resources.
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41

David Ricardo
֎ David Ricardo (1772-1823), a Brit ish
economist , said t hat even if one count ry
has an absolut e advant age at producing
everyt hing, it is st ill bet t er f or it t o
specialize and t rade.
֎ Comparat ive advant age
– A sit uat ion wher e t he oppor t unit y cost s
(cost s in t er m of ot her goods given up)
of making a commodit y are lower f or one
count ry t han f or anot her .
֎ One count ry may be more ef f icient in
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42

David Ricardo
֎ What if one count ry has an absolut e
advant age over anot her count ry in
producing everyt hing?
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43
100 Barrels
of Wine
100 Rolls of
Clot h
Cost in Man-
years
Cost in Man-
Years
Englan
d
120 100
Port ug
al
80 90

David Ricardo
֎ Wit h 220 labors in England and 170
labors in Port ugal, and no t rade:
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44
Wine Clot h
England 100 100
Port ugal 100 100
Tot al Out put 200 200

David Ricardo
֎ I n England:
– To produce 1 bar rel of wine, it must give u
1.2 r olls of clot h.
– To pr oduce 1 r oll of clot h, it must give up
0.83 bar rels of wine.
֎ I n Por t ugal:
– To pr oduce 1 bar r el of wine, it must give
up 0.89 rolls of clot h.
– To pr oduce 1 r oll of clot h, it must give up
1.1 barr els of wine.
֎ ConclusionGroup # 1 Presented To: Ma’am Amna Majid
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45

David Ricardo
֎ Ricardo says t hat a nat ion should produce
t he pr oduct which it has compar at ive
advant age in producing, and t rade it f or
what t he ot her count r y has an compar at ive
advant age in pr oducing.
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46
Wine Clot h
England 0 220 rolls
Port ugal 212 barrels 0
Tot al
Out put
212 barrels 220 rolls

David Ricardo
֎ Suppose t he rat e of exchange is 1.04
rolls of clot h f or 1 barrel of wine, and
England t rades 106 of it s rolls of clot h
f or 102 of Port ugal’s barrels of wine.
(Bot h will have more of bot h product s
t han eit her had when t hey did not
specialize or t rade).
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47
Wine Clot h
England 102 barrels 114 rolls
Port ugal 110 barrels 106 rolls
Tot al
Out put
212 barrels 220 rolls

David Ricardo
֎ Conclusion:
– Af t er specializat ion bot h count ries
have more product s t han eit her had
when t hey did not specialize or t rade.
֎ Ricardo’s t heory is considered t o be
most signif icant concept in int ernat ional
t rade t heory t oday and is t he most
signif icant economic argument s people
propose in t he f avour of globalizat ion.Group # 1 Presented To: Ma’am Amna Majid
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48

Criticisms of David Ricardo
֎ Ricardo makes a number of assumpt ions
do not hold in t he real world:
1. Assume resources used t o produce
goods (e.g. labor, equipment , f act ories)
do not move f rom one count ry t o
anot her.
–Today mult inat ional companies can
easily move t heir product ive capit al
f rom one count ry t o anot her.
1. Assumes t hat each count ry’sGroup # 1 Presented To: Ma’am Amna Majid
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49

Criticisms of David Ricardo
֎ Ricardo makes a number of assumpt ions
t hat do not hold in t he real world:
3. Assumes t hat wor ker s can easily and
move cost less f rom one indust ry t o
anot her .
– I n realit y re-t renched workers of t en
cannot f ind comparable j obs and need
ret raining t o st ay employable.
4. I gnores int ernat ional r ule set t er s.
– I nt ernat ional t r ade inevit ably leads t o
disagr eement s and conf lict s and so
count r ies must agr ee t o abide by some set
of r ules and r ule set t er s.
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50

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Marx and Justice:
Criticizing Markets and Trade
֎ Karl Marx (1818-1883) during t he
I ndust rial Revolut ion was t he harshest
and most inf luent ial crit ic of t he
inequalit ies t hat privat e propert y
inst it ut ions, f ree market s, and f ree
t rade are accused of creat ing.
֎ Suf f ering and misery t hat capit alism was
imposing on it s workers:
– Exploit at ive working hours
– Pulmonary diseases
– Premat ure deat hs caused by unsanit ary
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52

Marx and Justice:
֎ According t o Marx:
– Capit alism of f er s only t wo sour ces of income:
oSale of one’s own labor;
oOwnership of t he means of product ion
(buildings, machinery, land, raw mat erials)
– 1s ar e f or ced t o sell t heir labor t o 2s because
t hey cannot pr oduce anyt hing wit hout access
t o t he means of pr oduct ion.
– As a result , t he income gap bet ween 1s and 2s
is widened.
֎ Workers cannot produce anyt hing wit hout
access t o t he means of product ion so t hey are
f orced t o sell t heir labor t o t he owner in
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53

Marx and Justice:
֎ The owner does not pay workers t he f ull
value of t heir labor, only what t hey need
t o subsist .
֎ The dif f erence (“surplus”) bet ween t he
value of t he labor and t he subsist ence
wages becomes t he source of t he owner’s
prof it s.
֎ Those who own t he means of product ion
becomes wealt hier and workers becomes
relat ively poorer.
֎ Capit alism promot es inj ust ice andGroup # 1 Presented To: Ma’am Amna Majid
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54

Alienation
֎ In Marx’s view capitalism ‘alienates’ the
lower working classes by not allowing them
to develop their productive potential nor to
satisfy their real human needs nor to form
satisfying human relationship.
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55

Alienation
֎ According t o Marx, capit alist economies
alienat e workers in f our ways:-
1. I n capit alist societ ies, product s t hat
workers produce are t aken away by t he
capit alist employer.
2. Capit alism f orces people int o work t hat
t hey f ind dissat isf ying and unf ulf illing and
t hat is cont rolled by someone else.
3. Capit alism alienat es people by inst illing in
t hem f alse views of what t heir real human
needs and desires are.
4. Capit alist societ ies alienat e human being
f rom each ot her by separat ing t hem int o
ant agonist ic and unequal social classes
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Alienation
֎ Privat e propert y and f ree market s leads
t o alienat ion, which is unj ust and in
conf lict wit h t he demands of caring.
– So common propert y inst it ut ions should
be est ablished inst ead. Product ive
societ y can st ill be t he result because
t he desire t o be product ive is an
inst inct .
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57

The Real Purpose Of
Government
֎ According t o Marx, t he act ual f unct ion
t hat government s have served is t hat
of prot ect ing t he int erest s of t he
ruling economic class.
֎ According t o Marx, societ y can be
analyzed in t erms of it s t wo main
component s:
– Economic Subst ruct ure
– Social Superst ruct ure
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Economic Substructure
֎ Consist s of t he mat erials and social
cont rols t hat societ y uses t o produce it s
economic goods.
֎ Marx ref ers t o t he mat erials (land,
labor, nat ural resources, machinery,
energy, t echnology) used in product ion as
t he f orces of product ion.
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59

֎ Marx called t he social cont rols used in
producing goods (i.e. t he social cont rols
by which societ y organizes and cont rols
it s workers) t he relat ions of product ion.
֎ Two main t ypes of relat ions of
product ion:
– Cont rol based on ownership of t he
mat erials used t o produce goods
– Cont rol based on aut horit y t o commandGroup # 1 Presented To: Ma’am Amna Majid
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60

֎ I n modern indust rial societ y, capit alist
owners cont rol t heir f act ory laborers
because:
– The capit alist own t he machinery on
which laborers must work if t hey are t o
survive.
– Laborers must ent er a wage cont ract by
which t hey give t he owner (or manager)
t he legal aut horit y t o command.
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61

Social Superstructure
֎ Consist s of it s government and it s popular
ideologies.
֎ Marx claim t hat t he ruling class creat ed
by t he economic subst ruct ure inevit ably
cont rols t his superst ruct ure.
֎ The members of t he ruling class will
cont rol t he government and use it t o
prot ect t heir posit ion and prosperit y and
will popularize ideologies t hat j ust if y t heirGroup # 1 Presented To: Ma’am Amna Majid
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62

Social Superstructure
֎ According t o Marx:
– Societ y’s government and it s ideologies are
designed t o prot ect t he int erest s of it s ruling
economic classes. These classes are creat ed by
t he societ y’s underlying relat ions of product ion.
– These relat ions of product ions, in t urn, are
det ermined by t he underlying f orces of
product ion.
– Marx claimed all maj or hist orical changes are
ult imat ely produced by t he changes in societ y’s
f orces of product ion.
֎ Hist orical mat erialism: t he Marxist view ofGroup # 1 Presented To: Ma’am Amna Majid
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63

Immiseration of workers
֎ I mmiserat ion of workers
– Capit alism produces t he combined
ef f ect s of increased concent rat ion of
indust rial power, cyclic crises due t o an
over supply of goods, rising
unemployment , and declining relat ive
compensat ion.
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Replies from Proponents of the
Free Market
Def enders of f ree market count er Marx
crit icism by:
֎ Marx cr it icism wr ongly assume j ust ice
means eit her equalit y or dist ribut ion
accor ding t o need.
֎ Re-emphasizing t hat j ust ice means
dist ribut ion according t o cont r ibut ion
– e.g. when mar ket s ar e f r ee and f unct ioning
compet it ively, wor ker s’ will be paid accor ding
t o t heir value and cont r ibut ions as t hey add
t o t he out put of t he economy
֎ Even if pr ivat e ownership causes
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65

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Mixed Economy
֎ The debat e f or/ against f ree market s,
f ree t rade and privat e propert y has been
spurred on by recent world event s:
– The collapse of several communist regimes
such as f ormer Soviet Union; and
– The emergence of st rong compet it ors in
several Asian nat ions, such as China, J apan,
Singapore and Taiwan.
֎ Collapse of communist regimes around t he
world has shown t hat capit alism wit h it s
emphasis on f ree market s is t he clear
winner.
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67

Mixed Economy
֎ Mixed economy
– An economy t hat r et ains a mar ket and pr ivat e
pr oper t y syst em but r elies heavily on
gover nment policies t o remedy t heir
def iciencies.
֎ Gover nment t ransf er s (of privat e income)
are used t o get r id of t he wor st aspect s of
inequalit y by drawing money f r om t he
wealt hy in t he f or m of income t axes and
dist ribut ing it t o t he disadvant aged in t he
f or m of welf are.
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68

Mixed Economy
֎ Monopolies are regulat ed,
nat ionalized or out lawed.
֎ Sweden, Germany, Denmark,
J apan, t he Net herlands, Belgium,
Norway, Finland, Swit zerland are
all mixed economies wit h high
levels of government int ervent ion.
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69

Property Systems and
New Technologies
֎ I nt ellect ual propert y:
֎ Propert y t hat consist s of an abst ract
and nonphysical obj ect .
– e.g. a program, a song, an idea, et c.
֎ Unlike physical propert y, int ellect ual
propert y can be copied, used, or
consumed by count less individual at t he
same t ime.
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Property Systems and
New Technologies
֎ Locke and ut ilit arian view t hat int ellect ual
propert y should be t reat ed as privat e
propert y.
– Wit hout such privat e propert y right s,
int ellect ual creat ion would dry up.
֎ Marx views t hat int ellect ual propert y
should be t reat ed as public propert y.
– I nt ellect ual creat ivit y does not require t he
f inancial incent ives.
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The End of Marxism?
֎ The f all of Soviet Union
represent t he end of Marxism!
֎ The soviet union broke up and
reorganized st at es discarded t he
t radit ional Marxian concept s and
incorporat ed bot h socialist and
capit alist element s.
– The dominat ion of mixed economyGroup # 1 72Presented To: Ma’am Amna Majid
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