Does the Whole World Use the Same Economic System?

By- Rami Itani

Simple Answer

NO!

There Are Three Main Economic Systems

The three Systems are-1. Mixed (Socialism DIFFERENT from

Communism) 2. Free (Capitalist) 3. Communism4. Transitional Economy

Mixed System

"Mixed economy -." Wikipedia, the free encyclopedia. Web. 07 Feb. 2010. <http://en.wikipedia.org/wiki/Mixed_economy>.

1. The Mixed System is really a mixture of two different economic systems, this systems are Socialism, and Capitalism.

2. The mixed economic system had started to be used in the 1930’s, some had said that the mixed economy goes more into socialism then it does to capitalism.

3. The US is a great example for a mixed economy today, some examples that the US economy provides are-

• A central Bank for the country• Postal services are to the public services including two major

companies FedEx and Ups • Both companies and the government can own (Sponsor) roads and

highways to be built and maintained • Governments pay local companies to clear waste from homes• Private Security forces are supported by the government including

police and firefighters• Airports are government owned, and the national airline American

airline is a privately owned airline.

What a mixed Market Includes

Free System

1. Capitalism is a system which include three components1. Property is mostly owned by individual people (6) 2. Goods, Services, and Products are exchanged in a free

market, which is a market open to everyone (6)3. Goods and other wealth's are invested on to create a profit.

(6)

2. Capitalism had developed through several centuries and hadn't made a quick domination on the economic life. (6)

Capital

Form of wealth for an individual (6)

Something that is used to create a good or service (6)

People cannot make a profit from the capital, but from the working capital can make profit for a persons life (6)

The Key features of a Free Market

Facts on Capitalism

“Why would one person’s profit not be someone else’s loss” (11)

Downing, David, Political and Economic Systems Democracy, Heinemann 2008 Chicago.

-Democratic countries use capitalism as there economic system. (40)

-Capitalism is also called Market economies. (40) -This is when most property is privately owned. (40)

-Goods are bought and sold in a free market. (40)

-This system has become very favorable in a democratic system. (40)

-Market Economies has shown that it is the most successful system. (40) -This systems is where a government doesn’t make all the decisions and where decisions are put on individual consumers and -producers. (40) 

Communism

Communism and its Economy  The Command Economic system-

- Is a belief system that citizens must trust that controls their work by dividing it equally amongst all citizens. (14)

- Citizens who run under this economy must think how they help other citizens and even the country as a whole in there work instead of the benefits they get out from work. (14)

- This systems is found to eradicate the poverty and inequality between people. (14)

- The communist system was established in 1918 by Vladimir Lenin. (14)

- Travel is very strict on citizens in a communist control, this is because they want to continue to control people. (20)

- Relocation is probably out of the question for citizens in the communist system, its shown to be illegal. (20)

Communism and its Economy Cont’d 

The Command Economic system-

- The Command system had shown to fail causing a bad economy and poverty throughout the nation. (20)

- Distribution of goods gets disturbed greatly causing a shortage of particular goods. This can be due to poor government management. (20)

- Farmers work for government own farmed on communist land, this means that all the animals and crops raised will be divided equally to the country. (20)

- The communist governments had promised citizens living in the country to provide a well-being and that they do not need to worry about simple necessities like food, shelter, healthcare, and employment. (23)

- All the citizens are paid an equal income which means that the more you do for society will not help a business grow. So hard work is not required. (23)

Sources -Fandel, Jennifer. Communism (Forms of Government). Upper Saddle River: Creative Education, 2007. Print.

Transitional Economy

What does it mean have a Transitional Economy

  The Transitioning Economic system-

- Transitional economies occur when a country with a planned economy undergo a economic liberalization causing the central planned economy changes and becomes a free market. This period of time that this economic liberalization occurs is called a transitional economy.

- Many trade barriers occur during a transitional of an economy making a nation more globalized.

- A Macroeconomic system occurs this means that it is an economic system that with a large scale or general economic factors.

- The IMF finds that a economy to fully transition into a free market the nation must include-

a) Liberalization b) Macroeconomic stabilizationc) Restructuring and privatization d) Legal and institutional reforms

Transitional Economy Cont’d

 Countries which have gone or going trough a transitional economic system-

Albania, Armenia, Azerbaijan, Belarus, Bulgaria, Cambodia, China, Croatia, Georgia, Czech Republic, Estonia, Hungary, India, Laos, Latvia, Lithuania, Kazakhstan, Kyrgyz Republic, Republic of Macedonia, Moldova, Poland, Romania, Russia, Slovak Republic, Slovenia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan and Vietnam. In addition,

“In 2002 the World Bank defined Bosnia and Herzegovina, and Federal Republic of Yugoslavia (later Serbia and Montenegro) as transition economies Mongolia and also a current one is Iran.” (Transition economy -." Wikipedia, the free encyclopedia. Web.)

"Transition economy -." Wikipedia, the free encyclopedia. Web. 19 Feb. 2010. <http://en.wikipedia.org/wiki/Transition_economy#Countries_in_transition>.