An economic system is referred to as a system comprising of the overall economic development of the country that includes distribution, production, and consumption of goods. Because of the financial crisis going on everywhere in the world, countries that have a better economic system are able to survive. There are 4 types of economic systems : capitalism, socialism, communism and mixed economic system. In communism, people own all the resources regardless of the class they belong to. Help is taken from the Government in order to operate their business or production. North Korea and China use the Communist economic system.

In Socialism, the Government takes charge of the services such as transportation, post offices, health and care. The negative points of this system are the problems of unemployment as well as higher taxes. India and Sweden are the best example of a socialist economic system. In the capitalist economic system, all the resources and production is driven by individuals. The government doesn’t intervene in the working of the system. It can be even considered as a private sector driven economic system. A mixed economic system is considered to be optimum blend of all the other economic systems. It is mostly found in the developed nations like United States. But it’s up to a country as to which of the 4 types of economic system it wants to take.

adminInternational12 Nov, 2008