Economy of any country should be much strong as it is the back bone of a country. There are much factors and systems that have much importance for the economy of a country.
First of all it made clear that we are not taking a course on economics and economic systems. We are only concerned with economics systems in relevance to business. The study is important because it affects operations of business. A business in socialist China has a different environment than that of a business in the USA.
An economic system describes how a society distributes resources to produce goods and services. The central issue is how to fulfill and unlimited demand for goods and services in a world of limited resources. Matching unlimited wants and limited resources is the fundamental issue of economics. Different economics systems try to resolve the central issue by addressing three sub-issue:
1. What and how much of goods and services will satisfy consumers' needs?
2. How to and who will produce the goods and services using what resources?
3. How to distribute the goods and services.
The very basic economic systems are as followings;
1. Communism
2. Socialism
3. Capitalism
Let us examine the difference in the way they address the central issue. we will analyze the difference in five dimensions.
First of all it made clear that we are not taking a course on economics and economic systems. We are only concerned with economics systems in relevance to business. The study is important because it affects operations of business. A business in socialist China has a different environment than that of a business in the USA.
An economic system describes how a society distributes resources to produce goods and services. The central issue is how to fulfill and unlimited demand for goods and services in a world of limited resources. Matching unlimited wants and limited resources is the fundamental issue of economics. Different economics systems try to resolve the central issue by addressing three sub-issue:
1. What and how much of goods and services will satisfy consumers' needs?
2. How to and who will produce the goods and services using what resources?
3. How to distribute the goods and services.
The very basic economic systems are as followings;
1. Communism
2. Socialism
3. Capitalism
Let us examine the difference in the way they address the central issue. we will analyze the difference in five dimensions.
- Business ownership
- Competition
- Profits
- Product availability
- employment options
