Capitalism Capitalism is an economic system in which ownership of economic resources is by private individuals. The system entails exchange of goods for making profit. The free hand made up of the unseen forces of demand and supply determines the amounts of goods sold and bought (Slavin 102). The state controls the working of the system by ensuring there is harmony. Capitalism is a common economic system in many countries. However, this study will only examine two states using this system. The two countries using the system are U.S and Canada. The countries are characterized by private ownership of the basic resources that are used in production such as land, factories and industries. The individuals owning land produce various agricultural products such as corn, wheat, cattle meat and cow’s milk soybeans among other products. On the contrary, Canada produces grains and oil seed and red meat, dairy products and horticultural products. The agriculturally produced goods are supplied to other private owners of factories and industries for the manufacture of refined products. The main motive of exchange in the U.S and Canadian economies is profit with the level of demand and supply in the economy determining the levels of goods and services produced and supplied. Government structure: the structure of the government in the two countries, (U.S and Canada) involves federal governments that are led by the political elites in the countries. The government has the duty of formulating policies that regulate the private production of goods and services in the country. Demographically, the U.S has a population of about of 311,650,000 people. This population is made up of people from different backgrounds including the race, economic, gender and age among other factors. The 2006 census provided the population of Canada as 31,612,895 people (CIA 1). Natural resources: economic resources are scarce yet the needs they are required to fulfill are many. Countries are endowed with different natural resources that form the base of their comparative advantage. Therefore, the U.S is endowed with large pieces of land used for farming practices, forestry, and oil among other resources. Similarly, Canada is endowed with land, forestry, minerals and metals. The differences in the endowments of natural resources enable the countries to engage in international trade. The good produced by the countries are sold both domestically and internationally in various markets. For both Canada and the U.s, the destinations of the goods are mainly in EU, Asian countries and developing countries throughout the world. The trade deficit for Canada for the financial year that ended in April 2011 was CAD 924 Million. The U.S too experienced a trade deficit that amounted to USD 43.7 billion in the financial period ended in April 2011. This means that the imports of the two countries were more than the exports. Communism According to Slavin, communism as an economic system is characterized by the ability of the state to promote equality among the members in the communist state (105). Communist states are not many in the world. Communism is characterized by public ownership of resources of