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THE ECONOMIC SYSTEMS IN THE WORLD - Coggle Diagram
THE ECONOMIC SYSTEMS IN THE WORLD
ECONOMIC SYSTEMS
Ways in which a country
Produces, organises, distributes and administers
Its materials
Human resources
The economic goods that these generates
(to provide for a high level of well-being)
MARKET ECONOMY
Through private initiative and economic globalisation
Led to the creation of large national and multinational companies
Nowadays
Large part of global market controlled by companies (multinationals)
Act outside of their country of origin
Present in many other countries through affiliated companies
They employ thousands of people
Most well-known
Is the most common of the types
United States is the main model
While countries in the European Union have variations
(the mixed economy)
THE CURRENT SYSTEMS
20th century to the present
The systems
Capitalist or market economy
Free market economy
(law of supply/demand between producers and consumers)
Private property
(individual or companies)
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Freedom to work and hire
State intervention on a small scale
Means of production
Mixed economy
State establishing laws
Regulating certain prices
Providing for social well-being of citizens
Communist or planned economy
State
Economy planned/centralised by State
Production process controlled and State is the owner of the means of production
State-owned properties
Private property/initiative don't exist
Objective
Achieve collective benefit through policies decided upon by the State
It was very important in past
Practically disappeared (since the breaking up of the Soviet Union in 1991)
Subsistence economy
Production for self-consumption
At the poorest and most isolated areas in the world
No separation of work or mechanisation
Hardly any economic or social development
