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ECONOMIC SYSTEMS IN THE WORLD, image, image, image, image - Coggle Diagram
ECONOMIC SYSTEMS IN THE WORLD
Are the ways in which a country
produces
organizes
distributes
in order to
provide a high level of well-being
.
administers the economic goods they generate
CURRENT SYSTEMS
The three systems that have existed since the 20th century are:
Capitalist or market economy
Based oon free market economy (supply and demand)
Private property (individual or companies) means of production
Freedom to work and hire
State intervention on a small scale.
Mixed economy
Greater state intervention in terms of setting laws, regulating certain prices and providing for the social welfare of its citizens.
Used in all the world
Communist or planned economy
Centralised by the
State
Production process is controlled
State is the owner of the means of production
They don't exit private property, only State-owned property.
Achieve collective benefit through policies decided upon by the State.
Was important in the past, disappeared in 1991
Subsistence economy
Based on production for self-consumption in the poorest and most isolated areas in the world.
There is no separation of work or mechanisation
There is hardly any economic or social development.
MARKET ECONOMY
The most widespread.
The United States is the main model
while the countries of the European Union have variations
mixed economy
.
Through private initiative and economic globalization
Led to the creation of large national and multinational companies.
Nowadays
The global market is controlled by companies called multinationals.
They act outside of their country of origin
Are present in many other countries through affiliated companies
They employ thousands of people.
