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THE ECONOMIC SYSTEMS IN THE WORLD, image, image - Coggle Diagram
THE ECONOMIC SYSTEMS IN THE WORLD
Economic systems
are the ways in which a country produces, organises, distributes and administers its material and human resources, and the economic goods that these generate, in order to provide for a high level of well-being.
2.2THE CURRENT SYSTEMS
1-Capitalist or market economy.
is based on
Free market economy (the law of supply and demand between producers and consumers)
Private property (individual or companies) means of production
Freedom to work and hire
State intervention on a small scale
Mixed economy
involves greater intervention from the State in terms of establishing
Laws
regulating certain prices
providing for the social well-being of its citizens
2-Communist or planned economy
is
The economy is planned and centralised by the State
The production process is controlled and the State is the owner of the means of production
Private property and initiative do not exist, only State-owned properties
Objective is to achieve collective benefit through policies decided upon by the State
Disappeared since the breaking up of the
Soviet Union in 1991
Throughout the 20th century and up to the present, three economic systems have existed globally.
3-Subsistence economy
Based on production for self-consumption in the poorest and most isolated areas
Is
no separation of work or mechanisation
and there is hardly any economic or social development.
2.3MARKET ECONOMY
The market economy, through
private initiative
and
economic globalisation
, has led to the creation of large national and multinational companies.
United States
is the main model, the European Union have variations
Multinationals
They act
outside of their country of origin
and are present in many other countries through affiliated companies
Coca Cola, Microsoft, Apple...
WORLD ECONOMIC LEADERS
The Asian TIGERS
Technological and growth (1970)
South Korea, Taiwan, Hong Kong and Singapore
OPEC
Organisation of Petroleum Exporting Countries
Saudi Arabia
BRICS
Emerging countries
Brazil, Russia, India, China and South Africa
EU
European Union
NAFTA
North America Free Trade Agreement
Canada, USA, Mexico
MERCOSUR
Argentina, Brazil, Paraguay, Uruguay, Venezuela and Bolivia
ASEAN
Indonesia, Filipinas, Malaysia, Singapur, Thailand, Vietnam, Brunei, Cambodia, Laos y Myanmar
Tiger Club economies
Vietnam, Indonesia, Malaysia, Philippines and Thailand
