In this research work my main aim and task is to find out as much as possible about market economy system and specific economic aspects. I decided to choose to analyze Poland. I am going to find out what are the advantages and disadvantages of all the economy systems. What are traditional economy system, command economy system, market economy system and mixed economy system? What are the strengths and weaknesses of them? Which one of them is the most efficient and effective? What is capitalism? Is it better than communism?
I am going to be analyzing Poland and its economy. What kind of economies the country went through. Is Poland’s economy transition from communism to capitalism successful or not? What Poland is doing right and what is it doing wrong. What needs to be done and fixed and maybe what other countries should learn from one of the biggest countries in Europe.
What is economic system? An economic system is compromised of the various processes of motivating and organizing labor, distributing, producing, and circulating of the fruits of human labor, including tools, machines, products and services, consumer goods, and other technology to future production, and the infrastructure within and through which circulation, production and distribution occurs. All of these processes are over determined by the environmental, cultural and political conditions. Economic systems mainly deal with the relationships between production (supply) and consumption (demand). What is being produced has to be consumed and what is being consumed has to be produced. In the world there are four main types of economic systems. Traditional economy, command economy, market economy and mixed economy. Every single one of them has its advantages and disadvantages, strengths and weaknesses.
Traditional economy system
Traditional economy system is when the goods are shaped by traditions, beliefs, customs and habits. This economy system is very constant and comprehensive and greatly manifest highly developed economy. Family or a community usually makes main economic decisions. It promotes cooperation and harmonious relationship. It supports people with equal possibilities to practiced working with other people harmoniously and with complete cooperation. A traditional economy is more of producing goods along with essential services that would greatly help for the survival of the people. It is very environment friendly surrounding that wants to give people their needs effectively without affecting the environment and nature. However, traditional economy is pretty vulnerable. People in the traditional economy system are not highly specialized in living a good, wealthy life. Also, there is a capability to change. All the aspects that were just taught by some of their ancestors would be the only important things that people would be using and they will no longer adopt new aspects in the society for their improvements. Farming, herding cattle and hunting are the bases of traditional economy. Most countries that used to have a traditional economy system have replaced it with a command economy, market economy or mixed economy. Nevertheless, it is still can be found today in agricultural, underdeveloped parts of Africa, Asia and South America.
Command economy system
Command economy system is when the government is in charge. Central authority determines what goods should be produced, how much should be produced and it also sets the price that is going to be offered for sale. The control is very centralized. There is no tolerance for initiative. Probably the biggest advantage of command economy system is that it can prevent abuse of monopoly power. Also, command economies can prevent mass unemployment, often a feature of capitalism economies. Centrally planned economies are great at mobilizing economic resources very quickly, effectively and on a large scale. They can...
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