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EMS (theory) - Coggle Diagram

- - - - Cuba
      - North Korea
    - - Main focus is to benefit the citizens of the country
      - Wages, bonuses and services are distributed more evenly
      - Government tries to use resources optimally
      - Citizens benefit equally from resources
    - - Individuals lack motivation to be innovative
      - Goods are often poor quality as there's a lack of motive
      - Lack of competition and profit leads to ineffective use of the factors of production
      - The government may abuse its powers and become corrupt (North Korea)
    - - Wrote 'Das Kapital' with Frederich Engels (a German factory worker)
      - Book criticised the market economy due to the low pay workers received
  - - - Competition pushes businesses to be efficient
      - Skilled labour is valued
      - Producers are motivated to produce goods consumers want to buy
    - - Unemployment and high inflation can occur
      - Businesses don't provide essential services (roads, national defence force)
      - Businesses with a monopoly may drive prices up
      - Tends to widen the gap between the rich and the poor
    - - USA
      - Japan
    - - Wrote 'The wealth of the Nations'
      - Known as the 'father of the economics'
  - - - South Africa
      - Mexico
      - Brazil
      - Most democratic countries