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Economic System Advantages And Disadvantages

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Economic System
There are many economic system in the study of economy .Economy system is the structure of production, distribution of economic input and output and consumption of goods and services in an economy. There are 3 types of economic system which are planned economy system (command economy), mixed economy system and free market system (market economy). Therefore , different countries have different economy system.

The Mixed Economy System Of Malaysia
Mixed economy system is the centrally planned economy system combining free market economy system. In simple words, mixed economy includes free enterprise and government control or some form of direct intervention by government.
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Advantages of mixed economy
The first advantages as noted by Terrence (2004) is that in a well-structured mixed economy, customers’ needs are well meet because the government combines with individuals and business to carter for all the needs of people in the society. While the combination of government with individuals for the purpose of production in an economy has been earlier discussed as a limitation to this form of economy system, it must be noted that such limitations occur only in cases where these combination are not well structured in terms of what the business will have to invest in and what the individuals will have to invest
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This is another disadvantage as can be noticed in the international firms that maintain presence in the country. This is because there is a need for competitiveness to be on a level ground if these firms are to be profitable, but the note from all indication is that the chances of these firms to successes are limited as a result of the limitation in their competitive capacity because the government has already given the local firms a higher competitive advantage by imposing higher task on international brand, and limiting the chances of these international brand to adopt price-based competitive
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