Corporations are properly associated with mercantilism, rather than capitalism. Mercantilism is a system under which government grants special status to one or more company at the expense of its competitors. The British East India Company, for example, possessed an exclusive, royally-granted 'right' to conduct trade between India and China, on the one hand, and the British Empire for more than 250 years. Private capitalism, by contrast, is a system under which various enterprises compete in the marketplace by offering the highest quality goods and services they can, at the lowest possible prices. Progress occurs as individuals and companies strive to raise quality and lower prices.

"Corporations, Mercantilism, and Capitalism," 27 June 2010

Corporations, Mercantilism, and Capitalism