GLOBAL ECONOMIC SYSTEMS

GLOBAL ECONOMIC SYSTEMS
The way a country's resources are owned and the way that country takes decisions as to what to produce, how much to produce and how to distribute what has been produced determine the type of economic system that particular country practices.
1. MARKET ECONOMY
2. COMMAND ECONOMY
3. MIXED ECONOMY
MARKET ECONOMY
e.g. USA, Japan Private firms or individuals own means of production. They make choices about: o What to produce o How to produce o For whom to produce - What to produce is answered by consumers according their demand for goods & services - How to produce is answered by the business- men. They will choose the production method, which reduces their costs to reach the higher profit. - For whom to produce – firms produce goods & services which consumers are willing and able to buy.
COMMAND ECONOMY
In this type of economic system, the government decides how much workers should produce
Rulers and centralized governments impose their economic choices on society in the form of production quotas, etc.
Governmental decision-makers and planners perform the functions of a market
Some empires in the distant past had command economies. One example is Ancient Egypt.
A more recent example of a command economy is the former Soviet Union.
MARKET ECONOMY
In this economic system, individuals decide what to produce and what to buy
Buyers and sellers exchange goods and services on their own
An "invisible hand" seems to coordinate economic activity (Adam Smith)
The government plays little if any role in the marketplace
Property rights are very important




UNITED KINGDOMS MIXED ECONOMY
The United Kingdom has a mixed economy based on the Capitalist system on free trade and global economic, despite its limits being established by the Government. 'A Capitalist economic system is one characterised by free markets and the absence of government intervention in the economy.' Most decisions in the UK are made by the market. However, some decisions are made by the government e.g. those relating to road building, school and hospital construction, the supply of medicines in hospitals etc
The UK economy although viewed as a mainly capitalist economy has government spending taking up 35% of GDP. For the reason that the government pays for health, education, national defence etc. The overall economy is still perceived as capitalist as in the area of private enterprise companies are free to decide what to produce and for whom, and allows for an efficient allocation of resources..
US A MIXED ECONOMY
The U.S. is clearly a mixed economy. The government controls or partially controls many goods or services, such as education, courts, roads, hospital care and postal delivery. It also provides subsidies to agricultural producers, oil companies, financial companies and utilities. Private individuals cannot legally provide or purchase certain types of goods, such as cocaine, haggis, raw milk, Cuban cigars and most types of flavored cigarettes. Other products face heavy taxation to discourage their use.
In the U.S., private businesses need to register with government agencies, and many types of professionals can only operate with government-approved licenses, including funeral attendants, auctioneers, private investigators, makeup artists, hair stylists, real estate agents and financial advisers.
CANADA MIXED ECONOMY
Canada is viewed as a mixed economy because not only the government in Canada makes choices for the country but citizens also get to give their opinion about what is best for Canada. The government helps the market in many ways such as health care, environmental care, education, etc. In order to maintain the economy of Canada. In Canada people privately own the industries, and there are some industries and companies which are publicly owned by the government so citizens take their own responsibility to make smart choices, which helps both them and the country. The government also helps people in many ways, like building facilities for homeless or handicap people who aren't stable enough to take care of themselves and their families. Canada is also viewed as having a mixed economy because it combines private ownership and government control.


References

Why is Canada viewed as having a mixed economy? :: Socialproject
socialproject.webnode.com
Is the United States considered a market economy or a mixed economy? " Investopedia
Analysis Of The United Kingdoms Mixed Economy Economics Essay
Mixed Economy " Economics Help
Mixed Economy: Meaning, Features and Types of Mixed Economy
Mixed economy - Wikipedia, the free encyclopediaen.

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