planned economies following the collapse of communism in the former Soviet Union. Mixed Economies A mixed economy includes government involvement and private ownership of businesses. In some countries‚ the government owns the transportation and communication businesses. In socialist mixed economies‚ most of the main industries are government controlled‚ but citizens are free to work in other industries. Canada has a mixed economy. Because Canada has a large‚ land mass and a relatively small population
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where the government takes virtually total control. As with market structures (with perfect competition and monopoly)‚ these two extremes are highly unrealistic. Just about every economy in the world is a mix of the two‚ and is‚ therefore‚ called a mixed economy. The question is‚ what is the degree of mix? Let’s see how these different systems answer the three basic economic questions (see above). A free market economy Before we look at how the three questions are answered‚ we must quickly look
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Table of Content Table of Content 1 TASK 1 2 a) Explanation on economics system attempt to allocate resources effectively. 2 b) Assessment on the impact of fiscal and monetary policy on business organisation and their activities. 9 c) Explain Malaysian competition policy and other regulation that may impact company. 15 TASK 2 17 a) Explanation on how market structures determine pricing and output decision of business. 17 b) Illustration on the way in which market forces shape organisational responses
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Question 1 Advantages of sole trading You’re the boss You keep all the profits by yourself Start-up costs are low You have maximum privacy. Establishing and operating your business is simple and easy. It’s easy to change your legal structure later if circumstances change You can easily wind up your business. Disadvantages of sole trading You have unlimited liability for debts as there’s no legal distinction between private and business assets. Your capacity to raise capital is limited
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International Business‚ 13e (Global Edition) (Daniels/Radebaugh/Sullivan) Chapter 4 The Economic Environment 1) The recent global economic crisis has led to which of the following? A) governments seeking to impose more constraints on capitalism B) governments seeking to eliminate constraints on capitalism C) governments seeking to increase the interdependence of developing economies D) governments seeking to eliminate the interdependence of developing economies 2) Income‚ purchasing
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four different types of economies. These economies are known as traditional‚ market‚ command‚ or mixed economies. Traditional economy is shaped mainly by traditions‚ customs‚ and beliefs of the community. In a market economy decisions are determined by a free market. A command economy is an economy controlled by the government who regulates the supply and prices of the goods and services produced. The mixed economy is where both the private sector and the government make the decisions on what goods and
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decisions. Theocratic law is a legal system based on religious teachings. 4. Name and describe the three economic systems. Which economic system is the most common and why? Answer: Three economic systems are Market economy‚ command economy and Mixed economy. Market economy is an economy that is characterized by the “invisible hand” of market forces. Command Economy is an economy in which theoretically all factors of production are state owned and state controlled‚ and all supply‚ demand‚ and pricing
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state ownership or cooperative control to ensure stability‚ equality or expand decision-making power‚ are market socialist systems. The basic and general economic systems are: Market economy ("hands off" systems‚ such as laissez-faire capitalism) Mixed economy (a hybrid
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Untouchability was abolished and social reforms were undertaken. In the economic sphere‚ the state not only regulated the market‚ it also emerged as the major employer providing employment opportunities to the people. India adopted the policy of mixed economy/a powerful public sector was created. For Nehru‚ the public sector undertakings were the temples of modern India. Their objective was to assist in the rapid economic growth and industrialisation of the country. Over the years their number and
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different types of ways of allocating scarce resources which are pure market economy‚ pure command economy and mixed economy. (Griffiths‚ Wall‚ 2008) Some people believe that the free market is the best mechanism for allocating scarce resources. A pure command economy is an economy in which the government makes all allocation decisions and answers all three questions of allocation A mixed economy is a mixture between markets and the government making decisions on allocating resources. (Griffiths‚
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