...Title: Why are most countries mixed economies? Nearly all societies are confronted with the central economic problem of how to allocate scarce resources to satisfy infinite needs and wants. However, the way in which this question is tackled varies from one country to another. At the one extreme lies the centrally planned system, which is defined by Anderton (2008:261) as ‘an economic system where governments, through a planning process, allocate resources in society’. At the other extreme lies the free market, which means that ‘the government does not intervene and leaves all decisions to individuals and private firms’ (Gillespie, 2011:8). In practice, however, no pure command economy or free market exists because the economic system is always accompanied by government intervention, yet some countries are approximate to the two extremes. For instance, Begg (2009:5) claims that in China, Cuba and the former Soviet Union, capital used to be owned by the state and most of decisions about what, how and for whom to produce were centrally made. On the contrary, a spectrum from Sloman (2009:17) shows that the United State tends to be more like a free market and it mainly relies on the price mechanism. Actually most countries like Britain, France and Poland prefer to implement the mixed economy (Sloman, 2009:17). It is defined by Bannock (2011:256) as ‘a market economy in which both private and public enterprise participate in economic activities’. This essay will analyse why most countries...
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...prioritize and allocate our limited income, time, and resources—are the basic economic challenge that has confronted individuals and nations throughout history. But not every nation has addressed this challenge in the same way. Societies have developed different broad economic approaches to manage their resources. Economists generally recognize four basic types of economic systems—traditional, command, market, and mixed—but they don’t completely agree on the question of which system best addresses the challenge of scarcity. A traditional economic system is—here's a shocker—shaped by tradition. The work that people do, the goods and services they provide, how they use and exchange resources… all tend to follow long-established patterns. These economic systems are not very dynamic—things don’t change very much. Standards of living are static; individuals don’t enjoy much financial or occupational mobility. But economic behaviors and relationships are predictable. You know what you are supposed to do, who you trade with, and what to expect from others. In many traditional economies, community interests take precedence over the individual. Individuals may be expected to combine their efforts and share equally in the proceeds of their labor. In other...
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...referred to mixed economy because it involves both private and public ownership of resources, and good and services are produced and provided by both the government and privately owned companies. Canada’s system is often referred to a capitalist system because we allow and also encourage the private ownership of capital, that is, the plants, factories, equipment, and so forth that are used to produce and provide goods and services. India has a Mixed Market economy meaning it uses a variety of government regulation to control the economy, but relies primarily on market that forces to set prices and demand and uses general principles of capitalism. India is having a mixed economic structure. It is neither fully capitalist nor fully socialistic. It is neither completely an open system nor a fully free market system. The key variables in the choice of this economic design are: people's welfare, equitable distribution of wealth and income, a logical link between employment and incomes, restraining monopolies and concentration of power and wealth, and supporting health and education sectors through government subsidies and political strength. India has a mixed economy. Half of India's workers rely on agriculture, the signature of a traditional economy. One third of its workers are employed by the services industry, which contributes two-thirds of India's output. The productivity of this segment is made possible by India's increasing move toward a market economy. Since the...
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...charities. The system in which sellers and buyers can exchange goods and services is called a market. The local farmers market is a market. Farmers bring their fruits and vegetables to a single location to attract customers to that location. A stock exchange, like the Toronto Stock Exchange, is another example of a market. This is a market in which people can buy or sell shares. This chapter will review how the different countries of the world are divided between those that follow the concepts of command economies - socialism and communism - and those that have adopted a market economic system - capitalism and a mixed economy. The pursuit of social, economic, and political goals; the treatment, use, and motivations of the workforce; and market dynamics are different under each of the two approaches. Many countries have changed their economic systems. The strength of an economic system, or the economy overall, has a major impact on business. Canada enjoys a mixed economy. As such, economic concepts such Gross Domestic Product (GDP), productivity, unemployment rates, inflation, Consumer Price Index (CPI), and the overall business cycle, need to be carefully and continuously monitored, understood, and analyzed. Learning Goals Key Concept/Learning Goal | Summary | Explain what capitalism is and how free markets work. | Capitalism is an economic system in which all or most of the factors of production and distribution (e.g., land, factories, railroads, and stores) are privately...
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...could report a bribery, to the police and it would be considered a crime. Or even if people would be willing to work undercover to see which of the major companies are participating in bribery or supporting it. In my opinion this would be since I would work for a company that receives goods through the port. Also I would need to know more of my company. For example what if this bribery or “tip” occurs only for companies that are surrounded the port. In other words if the governments initiative would be for big companies like the one I am working for. What am trying to get with this, is that we don’t know what type of goods are being received or sent and if it is all in the legal margin. What if what is being transported is illegal and that is why there’s a need for a tip that enhances bribery. What if the company I work for...
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...for task 2.1 Jason: Thank you caller. For the sake of the wider public; society is faced with the economic problem of scarcity, which exists because factors of production or to use common vernacular…resources…are finite while consumers’ wants are infinite. Economic systems are the systems employed by the state or nation to allocate these scarce resources and apportion goods and services in the national community. Now, there are three basic economic systems, planned, market and mixed…so I would now invite the panel to shed some light on each of these and in particular help the caller to understand which applies to our local economy. Marjorie: Ok…Jason so you mentioned planned economies, a planned is where the government has total control of the economy and the allocation of resources. Government and their central planners decide on what, how and for whom goods and services are produced. This type of governance is associated with socialist type economies namely Korea and Cuba. In a Planned Economy central planners decide what to produce based on assumptions of consumers needs of goods and services and they also focus on allocating resources for future consumption. Central planners also plan the production process once the outputs have been attained then the level of inputs are calculated. Government will also determine to whom...
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...EXECUTIVE SUMMARY Vietnam is a young country with the developing economy. To be a member of WTO (World Trade Organization), Vietnam can have many opportunities to develop more and more but it is also a challenge for this South East Asia country in the time changing from command economy to mixed economy. Established on 9th, April, 1995, through 15 years operating on home care products, personal care products and food, Unilever Vietnam has achieved a lot of success and be remarkable in Vietnam’s economy. Unilever Vietnam is evaluated as one of strongest foreign capital companies and has a huge contribution to Vietnam’s development and country’s economy. The important feature that guarantees its success is the close connection between the firm and Vietnam’s economy and the community. Furthermore, Unilever also has built and developed well relationships between medium and small internal enterprises even they are customers, suppliers or distributors. Over 15 years in Vietnam, Unilever is known as a firm not only brings the benefits to its own business but also contributing to the social’s development, especially with children and women by its meaningful activities. This project researches Unilever on this variety of aspect: * Identify the mission, values, and objectives and assess the influence of stakeholders of Unilever * Evaluate the extent to which Unilever achieves the objectives of three stakeholders * Identify the responsibilities of Unilever and strategies employed...
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...known as the emerging markets. They are driving the global economy. Investing in emerging markets is a wise decision as the growth can be witnessed and also have better return on investment for future. It is anticipated that Emerging economies will mature two to three times more rapidly than developed nation like the US, as predicted by International Monetary Fund estimates. Corporate profits incline to grow faster when economic growth is higher. Likewise, US companies have done well in the last 12 months is because of their growth in non-US markets. Emerging markets also prove beneficial to investors as they create diversification as they act differently than developed markets. Emerging Markets Index of Morgan Stanley's consists of Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey (Forbes). Russia is one of the booming emerging markets in the East. However, Russia is not always an investor favorite as it is a booming market in global oil and gas demand. Russia has tons of both. It is the world's prominent natural gas producer and exporter and has the 8th largest oil reserves in the world. Russia is considered as a bargain for equity, but that is mostly due to country risk. (Forbes) During the recession in 2008, world markets in developed countries crashed but the emerging markets saved the global economy, mainly Brazil, India and China. The global credit crisis...
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...Global Business Today 6e by Charles W.L. Hill McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 National Differences in Political Economy Introduction Question: What is the political economy of a country? A country’s political economy refers to its political, economic, and legal systems These systems are interdependent, and interact and influence each other A country’s political system has major implications for the practice of international business 2-3 Political Systems A political system is the system of government in a nation Political systems can be assessed in terms of the degree to which they emphasize collectivism as opposed to individualism in terms of the degree to which they are democratic or totalitarian 2-4 Classroom Performance System The political, economic and legal systems of a country are called a) Political systems b) Economic systems c) Legal systems d) Political economy 2-5 Collectivism and Individualism Collectivism refers to a system that stresses the primacy of collective goals over individual goals Collectivism can be traced to the ancient Greek philosopher Plato Today, socialists support collectivism When collectivism is emphasized, the needs of the society as whole are generally viewed as being more important than individual freedoms 2-6 Collectivism and Individualism Socialism Modern socialists trace their roots to Karl Marx who advocated state...
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...The twenty-first century is a period of unprecedented change in organizations. The popular Business press constantly documents organizational restructuring, reengineering, downsizing, and other assorted changes. Even during the robust economy of the late 1990s, many large Companies were shedding jobs at an incredible pace. Terms such as downsizing and rightsizing may suggest a one-time fix, but many experts view this as an ongoing process for organizations of the future (Richman, LS, 1993). So what is organizational change? Organizational changes are departures from the status quo for smooth trends (Huber, GP, 1995). It is the process of altering or modifying the current state in terms of behaviors or functions (Harrington, N, 2008). The forces of change are everywhere, they can be found within the organization itself and they can be found in the external environment. The internal environment is affected by the organization’s management policies and styles, system and procedures as well as employee attitudes. The external environment is affected by political, social, technological and economic stimuli outside of the organization that causes changes (Benowitz, EA, 2011). Why do organizations change? Organizations change for many reasons but there are six broad forces that bring about change: workforce changes, such as diversity; technology changes, such as mobile computing; economic changes, such as stock market fluctuations; competitive factors, such as mergers and acquisition...
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...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 equity; this prevents discrimination in the work place. Economic security is an advantage as well. This protects people with disabilities or retirees. Also, there is a high degree of costumer satisfaction because of the freedom of the citizens and the people can adapt to changes. (Economics pgs 37-38) The government in a mixed market economy is limited but not as much as that in a market...
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...Assignment Step 1 – Introduction My name is Angelanne Peni and I’m here to talk to about the economic system. I will be comparing Australia’s economy to North Korea’s economy. I will also be analysing both countries GDP and Economic freedoms in each country. Lastly, I will be evaluating each economic system based on the criteria of choice and public services. Step 2 – Body paragraph 1 The economic system most resembled in Australia is mixed market economy. The economic system most resembled in North Korea is a command economy. Australia is considered to be a mixed market economy due its characteristics by private enterprise coupled with strong controlling oversight by the government and government provision of public goods such as roads. Australia's mixed market economy is a wealthy, market economy where the GDP is high and the rate of poverty is low. (Discoverwhy, 2016) In North Korea they have a planned economy, they also have a dictator. Their dictator can do whatever he wants and make whatever decisions he chooses with respect to the economy, military, etc. The inner circle around a dictator has influence over all kinds of important decisions, including economic decisions. Rather than having buyers, producers and sellers determine how much to produce or supply, such decisions are made by central planners who enforce production quotas based on some idealistic preference. This regularly leads to shortages, surpluses, misallocation of resources and poverty. ...
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...for a long time, which China is closer to being a traditional, command, or market economy. Actually, there are two main types of economy around the world what are the command economy and the market economy. China is market economy more than traditional and command economy. People always control and change some rules of economy who is the leader or government of China cause many economy issues. As we know, the departed China used to have command economy that the government have power to control and decided all economy system, which is called Communist Party. However, there was a big change in Chinese economy when Third Plenary Session of the 11th Central Committee of the Chinese Communist Party was start, then famous Chinese leader Deng Xiaoping gave a plan that make Chinese economy become market economy and make sure consumers had the highest power in market(Wikipedia). On the other hand, relationship is important part of economy system that China is also a mixed economy, what is an economic system in which some companies are owned by the state and some are not. We can find many information about the use of resources that were control by government and few business man got profit that did work with foreign countries by themselves without government. The nearly perfect plan is put the merit s from all different economy systems into one big system. There is the reason why China is a command economy that the price and quantity of all goods and services are controlled and planned...
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...The Nature of the Task This is your last homework task for IB Business & Management. It is also your comprehensive review sheet of the entire course for this subject. You have more than1 month to complete this extended homework task and significant time will be provided in class. This homework task includes simple definitions from the textbook, extended responses, calculations and practical exercises. QUESTIONS Marking Issues • Unless otherwise indicated, each question is worth 2 marks. • Extended response questions of 120 words (5 marks) • Extended response questions of 250 words (10 marks) MARKING CRITERIA Mastery of Key Facts & Concepts (Weight 10) (Short Answer 2 mark questions) 7 6 5 4 3 2 525-500 499-460 459-400 399-260 259-150 149-0 Analysis of Key Facts & Concepts (Weight 10) (Extended Responses & Calculations) 7 6 5 4 3 2 380-359 358-335 334-285 284-190 189-100 99-0 Dedication to the Learning Process (20%) 7-6 Range 5 Range 4 Range 3-2 Range * HW is submitted on time. * Every question is attempted. * All questions meet the word requirements/expectations * There are no spelling and grammatical errors. * Calculation questions include all the workings and formulas. * HW is submitted up to 3 days late * Almost all questions are attempted. * Most questions meet the word requirements. * There are some minor spelling and grammatical errors. * Calculation questions include most workings and formulas...
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...“Who feeds Paris?” He is trying to explain how the modern economy works, which is all about the prices. The Author uses the example if Patrons start ordering more of the sashimi appetizer, the restaurateur will notice the popularity and place a larger order with his fish wholesaler. The new popularity and demand of the fish will in turn make the wholesale price to go up. As a result, the fisherman will be paid more for their catch of the more popular fish. One very important assumption the Author makes is that individuals act to make themselves as well off as possible. Individuals seek to maximize their own utility. My understanding is people do whatever gives them satisfaction. In turn, it influences people’s decisions. Another powerful assumption made by the Author was that firms try to make as much money as possible. Firms take inputs and combine them in a way that adds valve. The Author used the example of Brad Pitt, trying to show a powerful feature of a market economy that directs resources to their most productive. The Author asked “Why doesn’t Brad Pitt sell automobile insurance?” Because Brad Pitt would make more money in Hollywood then selling insurance policies. One more main point is made with the discussion of the term “price discrimination.” I believe “price discrimination” is a genius idea. Selling the same item at different prices to different people. Why would firms do that? Consumers try to make themselves as...
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