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THE ECONOMIC SYSTEMS IN THE WORLD - Coggle Diagram
THE ECONOMIC SYSTEMS IN THE WORLD
economic systems
the ways in wich a country
produces
organises
distributes
administers its material and human resources
the economic goods that these generate
to provide for a high level of well-being
market economy
has led to the creation of large
national and multinational companies.
through private initiative and economic globalisation
nowadays
big part of this market is controlled by
multionational companies
they act outside of their country
known examples
microsoft
coca-cola
current systems
3 economic systems have existed globally
capitalist or market economy
based on a free market economy
private property
freedom to work and hire
State intervention on a small scale
mixed economy
involves greater intervention
from the State in terms of
regulating certain prices
providing for the social well-being of its citizen
establishing laws
comunist or planned economy
economy is planned and centralised by the State
the production process controlled
the State is the owner of the means of production
objective
achieve collective benefit through
policies decided upon by the State.
very important in the past, now is dissapearing
substience economy
system based on production for self-consumptio
in the poorest and most isolated areas in the world