Different nations use different economic system approaches to assist with the developing of the nation’s wealth as well as to solve the nation’s economic problems, it is a complex mechanism that have tasks of ensuring the production and distribution of products for the survival of the society. For the purpose of this assignment the focus will be on analyzing the four main types of economic systems furthermore it will be concentrating on describing South Africa as a mixed economy by describing the local system and explaining why South Africa is classified as a mixed economy and also regarding whether the mixed economic system used in South Africa is the suitable system for our current economic condition.
Economic systems are an approach on how different nations utilizes their resources and manages as well as controls their factors of production in such a way that wealth can be distributed equally amongst the population of that nation and that the needs of the society are met. There four main economic approaches that different countries use; The Free market economic system, Command economic system, Socialism economic system and the Mixed economic system.
MARKET ECONOMY SYSTEM
The first economic system is the Market economic system also recognized as the free market economy or free enterprise and also capitalism. In this system Government has no control over resources and how factors of production are being distributed amongst...
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...conomic system, individuals are able to explore with resources and there’s competition in the market and the market is driven by market force and it also adds to the GDP whilst there are those who are unprivileged, government intervenes to help and improve the life of those individuals, by implementing their policies and by doing that it builds up our GDP, because government provides the necessary needs to these individuals to help balance the distribution of wealth, however South Africa has failed to find the appropriate balance for the key, however when comparing the real GDP from 1990 to 2006 it has increased by 5.3% and inflation has decreased by 9.6%. The change in net reserves has increased by 26240, which is positive, although South Africa is struggling with unemployment, it just needs to find the balance of private ownership and government intervention.
The first type of economic system that they movie shows is a traditional system. A traditional economy is an economic system in which the allocation of scarce resources and other economic activity is the result of ritual habit or customs. In other words a traditional economy is a barter or trade system, everybody decides WHAT WHEN and FOR WHOM. When the video first starts the Mochans had to trade all over the island to acquire what needed. After a while they had enough of trading the chief decided to switch to currency instead of trade.
Economic systems are affected by the two opposing systems of capitalism and communism. They each can meet the needs of people; however, both affect the lives of people in good and bad ways, affecting industrialized nations and nations in the process of being industrialized. Capitalism is all about wealth and the wealth of people. Capitalism met the needs of the people because the right to property was created. You can own your own house, factories and land.
An economy is the wealth and resources of a country or region, especially in terms of the production and consumption of goods and services. America had problems with other countries and had to fix themselves so they could be a better nation. In the early 1900’s the changing of the economy negatively impacts the common people.
It is the study of resource allocation, distribution and consumption, of capital and investment, and of the management of the factors of production. (http://wikitionary.org/wiki/economics)
Supporting fact two: The economy of the country continued to grow, despite the sudden change of power. South Africans salaries increased: there used to be 12% of workers payed 2$ a day and after the abolishment of the apartheid, it went down to 5%. (http://www.bbc.com/news/business-23041513)
There are four main types of economic systems; traditional, market, command, and mixed. Each of these systems is unique to itself but is also similar in some aspects to the others. Some of the ways in which these systems are different but yet the same are through their property rights, competition, and profits. Each system benefits differently through each of these factors. They all strive for the same purpose though, to survive. To bring their people happiness. To thrive and expand.
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affects our lives on a daily basis, whether it is on a business level or a personal level.
Economic systems are defined as organized ways in which a state or nation allocates its resources and apportions goods and services in the national community (1). They are the means by which countries and government distribute resources and trade goods and services (2). The main purpose of these systems is to control the four factors of production: land, labor, capital and entrepreneurship. Different economic systems view these factors distinctively, and therefore utilize
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
...ellent policies, 5) the Constitution had come into existence through the working together of various groups that had composed South Africa, 6) South Africa's political and economic institutions are well established, 7) and that South Africa is by far the most developed country in Africa. However, there are still avenues that can impede further progress, more so economically then politically. Primarily the lack of foreign investment, especially when South Africa's gold and diamond reserves are emptied as other parts of economy are not as developed. Secondly, the economic gap between whites and blacks that was stretched during the time of apartheid needs to be tightened or else it could become dangerous to the stability of the political system. However, due to the leadership of Nelson Mandela, South Africa’s current government structure exists to solve these issues.
There are two types of economic systems that a society may adhere to; which are polar opposites. The Command system, also known as communism or socialism. In a command economy, the government owns the majority of the resources, and all decisions for the society is made based on a central plan. The command system has been adopted by countries such as the Soviet Union, China and North Korea. This economic system is commonly used by countries under a dictatorship. Despite the negative aura surrounding a dictatorship this system does have its pros and
As mentioned above, South Africa has been working on improving the lives of people. The Reconstruction and Development Program is one of the many that have been implemented that work on improving the life styles of people in South Africa. This is one of the strategies that has been very successful and is still standing as is. It is through this program that the lives of the many South Africans living in rural areas will be made
Economic development is highly dependent on the natural resources for food and energy production, which inputs to manufacturing, and to absorbing wastes and pollutants. Thus, there is a high dependency on farming. However, South Africa is not rich in agriculture resources; ...
Also, the current irregular financial growth tendency has widened the breach between the rich and poor such as, South Africa and other further developed nations. According to financial forecasts if the existing blueprint of uneven monetary growth persists, one of the poorest nation of the world such as, South Africa will raises to be even poorer will a power plant or not. The second question has made social scientists, policy creators, and worldwide institutions to reorganize ideas about the impact of globalization on nations such as, the above.
Apartheid was considered a necessary arrangement in South Africa, as the Afrikaner National Party gained a strong majority political control of the country after the 1940’s and the economic dependence on their fertile natural resources, such as diamond and gold mines and other metals such as platinum. This required intense labor and the white dominant control over the repressed black majority allowed for an