THE MAIN FEATURES OF PLANNED ECONOMY ü ü

THE MAIN FEATURES OF PLANNED ECONOMY ü ü an economic system in which the government controls and regulates production, distribution, prices; an economic system in which government directly manages supply and demand for goods and services; type of economy that gives the government total control over the allocation of resources; a planned economy allows the government to determine everything from distribution to pricing.

THE MAIN FEATURES OF MARKET ECONOMY ü ü an economic system in which there is little government intervention or central planning; an economic system in which there is free competition and prices are determined by the interaction of supply and demand; a true market economy is free of governmental influence or other external interference; a system of allocating resources based only on the interaction of market forces

THE MAIN FEATURES OF MIXED ECONOMY ü ü ü an economic system that combines private and state enterprises, that includes a mixture of capitalism and socialism; this type of economic system includes a combination of private economic freedom and centralized economic planning and government regulation; an economy in which some industries are privately owned and others are publicly owned or nationalized.

What countries have a market economy n n n n Brazil, Japan, France Sweden, Colombia, Mexico, Sudan.

What countries have a mixed economy n n n n The United States, Canada, Australia, Japan, Germany, the United Kingdom, Italy

What countries have a command economy n n n China North Korea Cuba Iran Libya

THE MAIN ADVANTAGES AND DISADVANTAGES OF PLANNED ECONOMY Advantages: the government tries to eliminate all private property and distribute its good equally; the government will provide equal health care and education opportunities; a major advantage of planned economy is that it is very stable Disadvantages: no freedom of choice for producers or consumers; the individual usually doesn’t have the opportunity to decide what they want to do there is little reason for innovations, hard work, or quality of the work.

THE MAIN ADVANTAGES AND DISADVANTAGES OF MARKET ECONOMY Advantages: § § market economies can adjust to change easily; people have the ability to make as much money as they can and do what is in their best interest; businesses can produce what they want and how they want; there is a great variety of goods and services for consumers. Disadvantages: § § § it doesn’t always provide the basic needs to everyone in the society; there is uncertainty in the business world; a government can’t provide adequate defense, education, and health care to its people.

THE MAIN ADVANTAGES AND DISADVANTAGES OF MIXED ECONOMY n n n § § Advantages: both public and private sectors work hard to bring about more production; all the national recourses are utilized; It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. Disadvantages: private enterprises have to face lot of difficulty; government mobilize the resources towards the production of those goods and services which are beneficial for the society rather than producing those goods and services which are more beneficial for an economy.

OUR CONCLUSIONS ABOUT RUSSIA n Russia has undergone significant changes since the collapse of the Soviet Union. It moves from a globallyisolated, centrally-planned economy to a more market-based and globallyintegrated economy.

n Now Russia is the country with marketbased and globally-integrated economy.