Elements Of Capitalism

The basic elements of economics of capitalism involve the interaction of these five elements; commodities, money, labour power, means of production, and production. There are two type of commodities: capital goods and consumer goods. Capital goods refers to things such as lands, raw materials, tools machines and factories needed to produce goods, and consumer goods which refers to items to be sold. Money is focal point of capitalist economy which refer to the standard means exchange. The purpose of money is simply to reduce all goods and commodities standard value. Labour power is the word need to transformed capital goods into consumer goods. Means of production is element of capitalism that best describe as the process that involved in converting capitalist goods to consumer goods. The last element of capitalism is production that involve the integration of labour power and means of …show more content…
The purpose of IMF was to assist in the construction of the world’s international payment system after the Second World War. The IMF members contributes fund through a quota system from which countries with payment imbalances can borrow many temporarily (Course Material, module 3). The IMF was initially for two primary functions; to oversee the fixed exchange rate arrangements between countries, and to provide short-term loans to balance payment. The IMF help national governments manage the exchange rates and allowing these government to prioritize their economic growth and development. Furthermore, the IMF also served the purpose of providing short term loans to its member countries. These provisions were intended to avert the spread of international economic crises and repair aspects of the international economy after the event of the Great Depression and the Second World War ((Course Material, module