Please enable JavaScript.
Coggle requires JavaScript to display documents.
TYPES OF ECONOMIC SYSTEM, they differ in - Coggle Diagram
TYPES OF ECONOMIC SYSTEM
mixed economy (Keynes)
includes features from both
public services (justice, health, defense etc.)
private sector
Examples of mixed economy are Italy and United Kingdom
command economy or planned economy
it's based on the public sector
the role of G (government)
has the complete control
makes the decisions about production/distribution
is successful when there is one single agrees aim (scopo comune)
Examples of command economy are Russia, China (even if they are moving to mixed economy) and the whole countries that are in war
capitalist system or free market system
resources are private, no part of the state
decisions about production/distribution are made by
entrepreneurs
private and individuals
price mechanism
demands of consumers
willingness (offerta/volontà) of producers to supply goods or services
there aren't a example of a full capitalism, but USA is the closest capitalist system largely free-market with some role of the government
the public sector
made up (formata da) public corporations
provide services of national interest (water,electricity...)
compete with private companies
in 1945 in the UK government bought companies that joined together and called nationalized corporations (BBC)
in 1980s began process of privalisation, makes the industries more profitable. Companies that changed from public to private call PLC (Public Limited Companies)
around 1990s public corporations use private services, deregulation is remove regulation to allow greater competition (transport services, broadcasting...)
involved in areas where the government has a direct responsability (helthcare, education...)
citizens pay through taxes
provide services for the whole population
they differ in
the use and the distribution of the resources
international trade
is the exchange of goods and services between different countries
an important part of the GDP (Gross Domestic Product)
BOP Balance Of Payements
Difference between the money coming into a country and the money going out over a period of time
if a country reiceves money that called credit
if a country pays money that called debit
BOP should be ZERO that means has assets and liabilities are equal
visible trade, that exchange of physical goods
visible imports, product brought into the country
import for Italy export for Costa Rica
visible exports, products sold to another country
invisible trade, that exchange of services
for examples tourism, bank services etc.
BOT Balance Of Trade
difference between the monetary value of imports and exports over a period of time
export > imports, positive balance = surplus
import > exports, negative balance = trade deficit or trade gap
they influence of the government
