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The economic systems in the world, image, image, image, image, image,…
The economic systems in the world
Economic systems
The ways in which a country produces, organises...
In order to provide for a high level of well-being
The current systems
Throughout the 20th century and up to the present
Three economic systems
Capitalist or market economy
Free market economy
The law of supply and demand
Private property means of production
Individual
Companies
Freedom to work and hire
State intervention on a small scale
More widespread
Mixed economy
Greater intervention from the State
Communist or planned economy
The economy is planned and centralised by the State
The production process is controlled
The State is the owner of the means of production
Private property and initiative do not exist
Only State-owned properties
Objective
To achieve collective benefit through policies decided upon by the State
Very important in the past
Practically disappeared
Since the breaking up of the Soviet Union in 1991
Subsistence economy
System based on production for self-consumption
In the poorest and most isolated areas in the world
No separation of work or mechanisation
There is hardly any economic or social development
Current economic blocks across the world
World economic leaders
United States, the European Union and Japan
Canada and Australia
The Asian tigers
South Korea, Taiwan, Hong Kong and Singapore
Tiger Cub Economies
Vietnam, Indonesia, Malaysia, the Philippines and Thailand
Countries with petroleum
Organisation of Petroleum Exporting Countries (OPEC)
Saudi Arabia
BRICS
Emerging countries
Brazil, Russia, India, China and South Africa
Economic organisations
No duties or tariffs within their borders
European Union (EU)
North America Free Trade Agreement (NAFTA)
Mercosur
The Andean Pact
The Association of Southeast Asian Nations (ASEAN)
Market economy
Has led to the creation of large national and multinational companies
Through private initiative and economic globalisation
United States is the main model
The countries in the European Union have variations
The mixed economy
A large part of the global market is controlled by companies
Multinationals
Coca Cola, Microsoft, Apple...
They act outside of their country of origin
They are present in many other countries through affiliated companies
