What is the difference between Capitalism And Imperialism?

One of the mistakes that people make is assuming that capitalism and imperialism are the same. When you say capitalism, this means that you are working on a voluntary exchange that will make sure that all of the parties that are part of the deal will benefit from it.

When you say imperialism, this means that someone will be using his political power in order to gain something from an otherwise impossible deal. There are some people who would be doing power tripping to make this happen, and there are also some who may tap on exploitation to make this possible. Sometimes, the military may become a part of imperialism.

Capitalism is an economic system that encourages people to take part in economic activities in different functions within the existing legal system and institutional structure. The elements of fabrication, such as raw materials, machines, and labor, are owned and are privately controlled without state interference. The people enact the purchase and sale of goods, and if the people are not content with the price of something, the producers will decrease the price of the product.

Competition is also the primary variable of capitalism that regulates the production, distribution, and consumption of goods. Imperialism, on the contrary, is a concept of broadening a country’s supremacy and influence through colonization, the use of military force, and by other means. There are two main types of imperialism, and this includes formal, which means the complete colonial rule. It can also be informal, which means indirect but strong power established by a country over another through technological and economic dominance. This dominance forces the acceptance of trade agreements on unequal terms.