What Role Does Business Play In Our Economy..?

1 Answers

Connor Sephton Profile
Connor Sephton answered
Because we have a capitalistic economy, business is the main component of it. Business is in every corner of every sector of the market. Most everything you can possible think of that relates to the economy is business. Retail, services, agriculture, manufacturing, health care, even political campaigning all involves business. Even when civilizations were based on an agricultural type of economy, business transactions occurred.

For example, in an agricultural society based solely on farming, there would be different types of farming taking place. If one farmer grew coconuts, and his neighbor had cattle, they would probably trade coconuts and milk with each other. This is just a practical business transaction to make. If they did not barter in this way, one would be forced to go without milk and the other would be forced to go without coconuts. This is just an illustration to point out that business takes place even on the smallest scale throughout history.

Without business, humans would have to completely fend for themselves for absolutely everything. We would have to find our own food every single day. We would have to gather materials to create shelter because there would be no store to buy them and no real estate agent to sell a house. We would have to make our own clothes out of fabrics we weaved from raw materials we harvested. This type of society would not be practical at all.

This is why people create trade with each other. Instead of having to provide ourselves with everything, we can focus on producing one product or expertise. We can then specialize in that product or expertise to make it the best on the market and then sell it for a profit. If everyone else does the same (in theory) we can all trade with each other and all obtain the best goods and the best knowledge.

Answer Question

Anonymous