Mixed and Global Economies

1.1.3 MIXED ECONOMY

• Mixed economies originate from planned (command) and market economies due to the disadvantages of the pure systems.
• The state exercises the best control in certain areas, while the private sector excels in others.
• South Africa operates within a mixed economic system.
• In 2010, South Africa ranked as the 28th largest economy globally and as the 40th largest economy in 2016, based on global GDP.

1.4 THE GLOBAL ECONOMY

• Globalization implies the world is becoming more interconnected through improved communication and transport.
• Countries rely more on each other because of specialization in goods production.
• Trade restrictions are reduced, and international trade and investments are crucial for positive international relations.
• Workers can reside in one country and use ICT to work for organizations in another.