Discuss the market capitalism model and explain how it differs from the dominance model.

What will be an ideal response?

Ans: The market capitalism model depicts businesses as operating within a market environment, responding primarily to powerful economic forces. It is substantially sheltered from direct impact by social and political forces. The market acts as a buffer between business and non-market forces. The model incorporates important assumptions. One is that government interference in economic life is slight. This is called laissez-faire. Another assumption is that individuals can own private property and freely risk investments. The dominance model is a basic way of seeing the BGS relationship. It represents primarily the perspective of business critics. In it, business and government dominate the great mass of people. Proponents of the dominance model focus on the defects and inefficiencies of capitalism. They believe that corporations are insulated from pressures holding them responsible, that regulation by a government in thrall to big business is feeble and that market forces are inadequate to ensure ethical management.