Chapter 2 Global economy PART 1

Global Economy

It is the interconnected worldwide system of production, consumption, finance, and trade between countries, driven by the globalization of capitalism, technology, and transportation.

Economic System

It is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.

Market Economy, Command Economy, Mixed Economy

What are the Three Economic Systems?

Market Economy

Decision-making of private individuals

Market Economy

Economy under the will and interest of the individuals.

Market Economy

Economic freedom to purchase and sell products, services, and properties

Market Economy

This condition is not planned by a single person or group that can manipulate or direct the economy solely.

Market Economy

It promotes competition among businesses and firms

Command Economy

A central economic planning body handles the entire decision-making.

Command Economy

The quality and quantity of goods and services produced are based on the decision of the government

Command Economy

Production quantity is dictated, consumer behavior is directed, and market operation is controlled by a single authority.

Command Economy

Its objective is to mobilize resources for the common good of the public and for the interest of the nation

Command Economy

Private individuals have no say in the economic operation.

Mixed Economy

Market-driven economies

Mixed Economy

Combination of market and command economies.

Mixed Economy

Some sectors are under the direction of private individuals, while other aspects of the economy are left within the guidance of the government.

Mixed Economy

The state can take over the ownership and operation of a private company for the purpose of maintaining the interest of the nation.

International Trade

It is the process and the system when goods, commodities, services cross national economies, and boundaries in exchange for money or goods of another country

Balaam and Veseth

Who said that International Trade is the process and the system when goods, commodities, services cross national economies, and boundaries in exchange for money or goods of another country

International Trade

Global trade has grown dramatically since the post-Cold War era because of increasing demand of goods and services and countries.