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THE ECONOMIC ENVIRONMENT AND THE GLOBAL TRADE - Coggle Diagram
THE ECONOMIC ENVIRONMENT AND THE GLOBAL TRADE
Economic Systems:
Various economic systems exist worldwide, including
capitalism
,
socialism
, and mixed economies.
In capitalism, production and distribution are privately owned and driven by profit motives.
Socialism
emphasizes collective ownership and control of resources, with an emphasis on social welfare.
Mixed economies
combine elements of both capitalism and socialism.
Production:
Production
refers to the process of creating goods and services.
It involves transforming raw materials into finished
products
through
manufacturing
,
agriculture
, or service industries.
Production can be classified as primary (extractive industries), secondary (manufacturing), or tertiary (services).
Deindustrialization:
Deindustrialization refers to the decline or loss of industrial activity
in a region or country.
It often occurs when manufacturing jobs and
industries move to lower-cost locations.
Deindustrialization can have
negative effects on employment, income, and economic growth in affected areas.
The Public Sector
The public
sector refers to
government-owned or controlled organizations and services.
It includes entities such as
government agencies, public utilities, and public education.
The public sector plays a vital role in providing essential services and
regulating the economy
.
Public sector activities are financed through taxes and other government revenues.
Economic Indicators
Economic indicators are statistical measures
used to evaluate the health and performance of an economy.
Common economic indicators include
GDP (Gross Domestic Product), inflation rate, unemployment rate, and consumer price index.
These indicators help policymakers, businesses, and analysts assess economic trends and make informed decisions.
Commerce and Trade
:
Commerce refers to the
buying and selling
of goods and services.
Trade involves the
exchange of goods and services
between countries or regions.
International trade is crucial for economic development and growth.
Global Trade Development:
Global trade
development refers to the growth and
expansion of international trade.
Factors
such as advancements in transportation,
communication
, and
technology
have facilitated global trade.
International trade
agreements and organizations, such as the World Trade Organization (WTO), promote and regulate global trade.