...annually (According to International Monetary Fund). This uncommon economics performance compels economists all around the world to ask them selves is a democracy an only system of government which guarantee sustainable growth and development of an economy? Though some economists believe that democracy, as the most common type of capitalism, is the most “healthful” and useful economics and government system, China is a socialist country. Socialism – “Compare capitalism an economic theory or system in which the means of production, distribution, and exchange are owned by the community collectively, usually through the state.” . From the definition it may be concluded that free market economy is more common for democracy (Capitalism), whereas planned economy is more typical to socialism. In a free market 3 basic production decisions: what to produce, how to do this and for whom these products should be produced; are made by the price mechanism without or very limited government intervention. Price mechanism assure that that there will be high competition in the market which will lead to high level of quality and innovations, low prices and quick respond to consumer’s wants as producers have to compete for consumers. However, as these decisions are made only by market forces some of them may be wrong, market failure, due to lack of information of the consumer and/or due to a free ride problem. Free ride – consumer will wait until someone buy a good, instead of buying it by himself....
Words: 741 - Pages: 3
...1a) Descriptions of governments can be based on: Economy - what provides the goods and services that are bought, sold, and used? Capitalism-(Russia)--In a capitalist or free-market economy, people own their own businesses and property and must buy services for private use, such as healthcare Socialism (Norway)-- Socialist governments own many of the larger industries and provide education, health and welfare services while allowing citizens some economic choices Communism (Cuba)-- In a communist country, the government owns all businesses and farms and provides its people's healthcare, education and welfare. Politics - how is the government run? Dictatorship (Iraq)-- Rule by a single leader who has not been elected and may use force to keep control. In a military dictatorship, the army is in control. Usually, there is little or no attention to public opinion or individual rights. Totalitarian (China)-- Rule by a single political party. People are forced to do what the government tells them and may also be prevented from leaving the country. Theocracy (Iran)-- A form of government where the rulers claim to be ruling on behalf of a set of religious ideas, or as direct agents of a deity. Monarchy (Jordan)-- A monarchy has a king or queen, who sometimes has absolute power. Power is passed along through the family Parliamentary (Israel)-- A parliamentary system is led by representatives of the people. Each is chosen as a member of a political party and remains in power...
Words: 7307 - Pages: 30
...PART 2 The Global Marketing Environment CHAPTER 2 The Global Economic Environment Case 2-1 The Global Economic Crisis I n his 1997 book One World, Ready or Not, William Greider described the United States as “the buyer of last resort.” Greider explained that, for many years, the United States was the only nation that was willing to absorb production surpluses exported by companies in Europe, Asia, and Latin America. Greider asked: “Who will buy the surpluses when the United States cannot?” The conventional wisdom has long held that strong spending by consumers in other nations would keep the world economy humming. However, by 2008, Greider’s question was taking on a new urgency and the conventional wisdom was being tested. An economic crisis that had its roots in lax subprime mortgage lending practices began to spread around the globe. In the United States, where the crisis began, economic misery was widespread: The housing market collapsed, real estate values plummeted, credit tightened, and job growth slowed (see Exhibit 2-1). As the price of oil passed the $100 per barrel benchmark, the average price of a gallon of gasoline rose to $4. American consumers were, indeed, less willing and less able to buy. However, the crisis was not confined to the United States alone. Consumer-goods exporters in Asia, which Exhibit 2-1: The bursting of the global real estate bubble was only one aspect of the worst recession in decades. The ripple effects from the economic...
Words: 24814 - Pages: 100
...manufacture, and/or market products in foreign countries, they encounter fascinating and often challenging economic environments. Chapter Four first explores the economic environments of countries in which an MNE might want to operate by discussing the importance of economic analysis and identifying the major dimensions of that process. It then compares and contrasts key macroeconomic indicators, such as economic growth, inflation, and the surpluses and deficits reflected in the balance of payments. Finally, it reviews the characteristics of the major types of economic systems, explores the principles of economic freedom, and concludes by examining the idea, the drivers, and the constraints associated with the transition from a centrally-planned to a market-based economy. CHAPTER OUTLINE OPENING CASE: MCDONALD’S AND RUSSIA’S ECONOMIC TRANSITION [See Map 4.1.] This case exemplifies the extraordinary challenges of operating in a transition economy. In fascinating detail it explains how, despite enormous start-up costs and difficulties, McDonald’s has managed to succeed in Russia since finally opening its first Moscow restaurant in 1991. Currently McDonald’s employs 17,000 people at 127 restaurants located in 37 Russian cities. In fact, Russia has become its fifth most profitable market in Europe. Along the way, various transition crises in the...
Words: 4349 - Pages: 18
...| | |Comparing and Contrasting Economic Systems | | | | | |Introduction to Sociology | | | | | |The Industrial Revolution changed |How it changed the economy |1900 and Today | |The number of people employed in industrial |The use of machines began to spread throughout |Implementation of the production line | |manufacturing (textiles, iron goods, metal, |the world | | |pottery, etc.) ...
Words: 1152 - Pages: 5
...Maima D. Beer English 24 Prof. Thompson Date: 7/26/12 Final Research Paper Birth Control and Its importance for Women Rights Women for centuries have been subjugated to men, and it’s hard to believe but there was a time in history in this country when women didn’t have any rights. Women couldn’t speak in public without the permission of men and were only looked to for bearing children, while taking care of the home. Throughout history women have fought for their rights with movements like the suffrage and birth control movements. The birth control unlike the suffrage movement is still an ongoing battle, even though women have the right to contraception, but many women don’t have access to because of certain state’s government have laws limiting that access to birth control. By the government controlling women’s access to birth control they are controlling the liberty for women. Birth control has been a very controversial topic and taboo since the classical period. Before one can grasp why and how birth control and the use of birth control can be controversial, one will need to understand what birth control is and the history. First, birth control should be viewed as a woman’s basic right that goes hand in hand with her first amendment right, and without any interference from the government. The all encompassing question is what is birth control? Birth control is a practice, material, or device by which sexual intercourse can be rendered...
Words: 3049 - Pages: 13
...| | | Foreign Direct Investment | | | | | | Marking its second investment in India, Warren Buffet’s Berkshire Hathaway will induce investment in a chlorinated polyvinyl chloride (CPVC) industrial unit in Gujarat, through its wholly owned subsidiary Lubrizol Corporation. Lubrizol will initially invest Rs 1,177 crore (US$ 242 million) in the project and its construction work is expected to commence by January 2013.In order to tap more foreign funds, Cox and Kings has got the nod from Foreign Investment Promotion Board (FIPB) to increase its foreign equity by 10 per cent to 53.94 per cent, from the previous 43.81 per cent. Currently, foreign promoters have a stake of 19.87 per cent and FIIs hold 22.72 per cent. FIPB has granted its approval to the travel company to raise Rs 750 crore (US$ 154 million) from foreign markets.Meanwhile, Singapore-based Global Schools Foundation plans to invest Rs 300 crore (US$ 61.6 million) and start 25 schools in India over 2011-16. The foundation owns and operates Global Indian International Schools (GIIS) and Global School of Silicon Valley (GSSV) across eight countries all over the world.Policy InitiativesRecently, the government has further liberalised the FDI mechanism for allowing overseas investment in bee-keeping and share-pledging for raising external debt.Moreover, it has eased FDI norms for construction of old-age homes and educational institutions. The modification endorses removal of issues pertaining to the minimum...
Words: 4805 - Pages: 20
...Write a 3-4 page paper in which you: 1.Describe the role of business in the economy. 2.Compare and contrast the roles of for-profit and nonprofit organizations in the economy. 3.Discuss the impact of current fiscal and monetary policy on the economy. 4. Select a product or service with which you are familiar and outline a strategy for accessing global markets. 5.Select an organization with which you are familiar and discuss the impact of that organization ’s level of social responsibility on a stakeholder group of your choice. My assignment must: •Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. The specific course learning outcomes associated with this assignment are: •Distinguish between the major forms of business ownership and compare the advantages and disadvantages of each. •Define entrepreneurship and the nature and importance in the U.S. economy of small businesses. •Describe the basic accounting process and the financial statements used in business. •Explain the role of financial management, human resource management, and information management in a business. •Identify the basic components of the marketing process (product, promotion, pricing, and distribution). •Use technology and information resources to research issues in business. •Write clearly and concisely about business issues using proper writing...
Words: 16853 - Pages: 68
...Command Economic System: When we talk about the term “command” in historical context; whether it relates to economic, political or warfare, command has always been vested in the hands of the few. If we relate “these few” to a group of people who exercise power in terms of making decisions (be it economic/social/political etc) for ALL the people they govern, we call this process or system a “Government”. In a command economic system, this government basically owns and controls most of the economic resources of the country. This “Command” economic system is also known as “socialism” or “communism” (McConnell – Economics) In any economic system decisions have to be made regarding production of goods and services, price setting, education, expenditure on infrastructure, resource allocation, resource/property ownership, resource distribution, establishment of industries and businesses, salaries for individuals etc. In a Command Economic System, all these decisions are taken by the Centre/Government. Public in general/ individuals in general do not have any “say” in such government decisions. Practically speaking, “Absolute” command economy doesn’t exist in this world, even near perfect “command economy” of Soviet Union/Russia had private/market influences in its system. McConnell states North Korea and Cuba as near to perfect Command Economic Systems. Pakistan too took a step towards socialism/nationalization in Zulfiqar Ali Bhutto’s era in 1970s, which later had to be discontinued...
Words: 1729 - Pages: 7
...Generally speaking, agriculture has been given first priority during the transition period. The policy reforms implemented by the government have enabled Vietnam to meet its food demand and to export its rice surplus. The rice-related policies are presented briefly in Table 5. Before the 1986 renovation. During the late 1970s, Vietnam experienced a serious food shortage and had to import 5.6 million tons of food from 1976 to1980 (Thoa, 1996). Rice production in 1980 was even lower than that in 1976 (Table 6). In this period, cooperatives dominated agricultural production, with the establishment and merging of the High Grade Agricultural Cooperatives. In December 95 1976, the Fourth National Congress of the Communist Party of Vietnam mapped out the transitional period to socialism as follows: “To carry out socialist industrialization and transform the economy from small-scale production into large-scale socialist production, priority is given to rationally develop heavy industry based on the development of agriculture and light industry” (Luoc, 1996). However, at this time, the collective agrarian model revealed its weaknesses as it discouraged collective labor to work. The results were low income and low growth of agriculture (1.9%). Recognizing the situation, the first formal step toward renovation was taken in 1979, when the Sixth Party Plenum emphasized on ‘some urgent problems in the improvement of economic management.” The objective was to encourage all cooperatives...
Words: 2017 - Pages: 9
...According to Economics: Principles & Practices, one of the disadvantages is “that it does not provide for the basic needs of everyone in the society.” That is true, but with the assistance from some government services such as Social Security and Medicare, the people will be helped and still remain free to purchase and buy what they want. Another disadvantage that is stated is the possibility of economic failure. The economic could fail if there is not enough competition. In a mixed market economy, the government helps prevent monopolies and to ensure competition (Economics, pg 39). With the competition, motivation is created to strive to be successful. The goals that a mixed market economy is trying to accomplish are economic freedom, economic efficiency, economic equity and economic security. Theses are all advantages for economic success. (Economics pgs 41-43) The advantages are very numerous. The biggest advantage is the economic freedom the citizens have. Buyers and sellers have the freedom of voluntary exchange. Buyers and sellers freely decide whether to complete transaction of not. Another advantage is the competition from other business. The competition between companies creates a variety of advantages from consumers. The prices get lowered and there is more variety. The competition between businesses creates economic efficiency. Using resources efficiently produces more products and fewer wastes creating a larger profit. Another advantage is economic...
Words: 977 - Pages: 4
...Economics through Decision LaFaye P. Moore Jr. ECO/212 Principles of Economics October 12, 2011 Robert Vansant Economics through Decision Decision-making are the process in how to make economics decision. Through economics comes decisive ways in making consult decision. This will show making individual decision in how a person uses economics to their lives. Economics effect every decision that someone make in the world. Example to the principles of individual decision-making Individual decisions have principles in how to make decision. Can someone just make on individual decision that does not affect him or her on economics decision. The principles for individual decision-making are to make your own decision. Individual decision-making personal or business decision because a person can make it for reason. Example if a person is makes a decision at home for their family then that come to the person decision-making. Then on the twist side, the business individual decision-making would be to change the business face. Changing the face of the company by figuring out how changing this will benefit the business. Decision in which compared the marginal benefits and the marginal costs associated with the decision What decision that a person make with marginal benefits and the marginal costs. Benefits and cost marginal are affecting decision-making. The process that takes these two marginal, which helps someone, make a decision that affect his or her choices in the economics...
Words: 888 - Pages: 4
...Economic Essay 1 Although the people of North and South Korea speak the same language, they have many different ideas and cultures that have developed after the two countries split apart. The market economy of South Korea has done a lot to improve the overall economy of the country, and the gross national product has been on the rise. The economy of North Korea has had many challenges, largely due to the self-reliant and closed economic system that they use. Overall, the government and economy of South Korea has been more prosperous and successful than North Korea. Much of this is due to the fact that in North Korea, they have a completely closed and centrally planned economic system which tends to inhibit their growth. The fact that South Korea operates under a democratic ideology, and has a capitalist economy seems to have given South Korea somewhat of an advantage. Because of their closed economic system, North Korea has refused to trade with capitalistic countries, and is only now showing more of an inclination to open communications up more even with South Korea. North Korea is one of the few command economies still standing. After the Second World War, the Korean peninsula was divided into North Korea and South Korea. North Korea, under the influence of the Soviet Union, established a command economy that emphasized government ownership and central government planning. South Korea, protected by the United State, established a market economy based upon private...
Words: 1024 - Pages: 5
...the best product for their business, the best people to work for them, the best place to open their business, and have the want to do good because of their potential monetary gains. - How do supply and demand impact the free market system? Supply and demand are what cause change in prices of goods across the board. If a new item was put on the market and everyone wanted one, the price of that item would skyrocket. Once the market gets flooded with copy cat products, there would be an ample supply of that item and the price would drive down. - Describe the key principles of socialist and communist economic systems. Does more government control mean less economic opportunity? Why or why not? Socialist and communist economies are both planned economies. A socialist economy is one where the government operates key enterprises such as healthcare and...
Words: 458 - Pages: 2
...changes when cost or benefits change. These principles explain how the economy functions as a whole. Since resources are scarce people have to make decisions based on benefiting themselves on how to spend their time and money. To make rational decisions people must interact with the environment and other decision makers. These interactions lead to the best allocation of resources. When people interact with one another they make trade for resources when the benefit is mutual. For example buying a soda the buyer is thirsty and enjoys soda so he or she will benefit from the soda, and the vender will benefit from the money for the soda so the trade has been made. These interactions are affected by the economy system present. In a centrally planned economy central authorities make decisions for what would be the best use of their goods and resources. The state can set prices of goods and determine how much to produce. Therefore, decisions are not voluntary. Decisions are voluntary in a market economy where the pricing of goods and services are guided solely by the interactions of a country’s citizens and businesses. In...
Words: 668 - Pages: 3
