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Essay / Free Market - 1225
Free market capitalism means that businesses are able to sell their products at the price they believe the market can support, thus allowing customers to purchase products at a price that they are ready to accept. The key to this market is price fluctuation; where prices rise or fall to reflect supply and demand. The healthiest markets are those in which many producers compete for markets and many consumers compete for available products. This type of market minimizes government involvement, mitigating regulations, unions, and trade barriers, allowing businesses and customers to decide which business will succeed. This in turn creates more jobs and competition (TheFreeDictionary, 2009). Creative capitalism focuses on corporate spending on projects considered socially desirable. For Bill Gates (2008), it is “market-based social change [in addition to] work that reduces inequality in the world” (Gates, 2008). This constitutes businesses’ support for causes that are important to customers in their neighborhoods. Many companies are joining what some call the RED campaign, which began as a fight to end AIDS in Africa, but has now expanded to a global fight to end AIDS and have an AIDS-free generation . Although it is just one struggle among many. community campaigns, the result of community work carried out by companies has certain economic benefits for the company. Some companies have identified entirely new markets among the poor, using tiered pricing allowing them to deliver life-changing technologies at cost. increasing the cost for those who can afford to pay more. For example, Vodafone bought a stake in Kenyan Cell Phone Company, believing that the medium of paper is actually a positive force for. change, and as such, it becomes beneficial to engage in these positive activities to increase employee dedication and loyalty. Ultimately, it is easier to hire and retain employees when they feel invested in the company's goals (Gates, 2008). It is on this basis that it would be wise to consider what the implications are for businesses that engage in such creative capitalism with regard to their performance, their employees and their profitability. Not all employees are equally dedicated to the company's goals and this is a positive way to gain their support. Profitability can be achieved through the use of creative capitalism, finding a niche and exploring it for the benefit of everyone involved. Increasing performance and exposure does not necessarily eliminate the need for advertising and brand building, it would be a tool to use during these campaigns..