Economic Systems And Economic System

2099 WordsDec 5, 20169 Pages
Economic system “Economic system is that it consists of those situations which a given people or nation has nations has chosen or accepted as the means through which resources are utilized for the satisfaction of human wants.” (studylecturenotes.com, 2016) Economic system allows countries to follow procedure to produce goods using resources available in the countries. It allows the countries to know how much and for whom to produce. There are different types of economic systems in different countries and they all have their different regulations according to their planned economic system. There are two different types of market: Free Market and Planned market. Free market “An economic system in which prices are determined by unrestricted competition between privately owned businesses” (oxforddictionaries.com, 2016) The free market is the economic system where the government has no or few restrictions on buying and selling goods from different countries. There are no tariffs or regulation processes being determined for trades. This is a very good economy to start a business has it has no interest rate, exchange rate or any force to stop them exchange their commodities in order to trade with different countries. The free market allows the individual or group of people running the business to make decision by themselves and allow that ease to trade with different countries at fair exchange schemes. UK as Free Market: “The UK is the 9th Largest export economy in the

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