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2 THE ECONOMIC SYSTEMS IN THE WORLD, image, image, image, image, image -…
2 THE ECONOMIC SYSTEMS IN THE WORLD
ECONOMIC SYSTEMS
are the ways in which a country
organises
distributes
produces
administers its material and human resources
economic goods that are generate
in order to
provide for a high level of well-being.
2.1 THE CURRENT SYSTEMS
20th century and up to the present
three economic systems have existed globally.
Communist or planned economy
economy is planned and centralised by the State
production process is controlled
State is the owner of the means of production
Private property and initiative do not exist, only State-owned properties
objective
achieve collective benefit
through policies decided upon by the State
was very important in the past
practically disappeared
breaking up of the Soviet Union in 1991.
Subsistence economy
based on production for self-consumption
poorest
most isolated areas
no separation of work or mechanisation
is hardly any economic or social development.
capitalist or market economy
based on a free market economy
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.
one variation
becoming more widespread
mixed economy
involves greater intervention from the State
establishing laws
regulating certain prices
providing for the social well-being of its citizens.
2.2 MARKET ECONOMY
definition
United States is the main model
is currently the most widespread of the different types
the countries in the European Union have variations
mixed economy.
has led to the creation of large national and multinational companies
through
private initiative
economic globalisation
nowadays
large part of the global market is controlled
by companies called multinationals
act outside of their country of origin
are present in many other countries
through affiliated companies
they employ thousands of people
mos well-known
Microsoft
Apple
Coca Cola
Zara
Movistar
Starbucks
