Economic Environment

scotch Environment of Business| Diploma in dresser Management & Administration | Semester V| www.ma16.org 1. stinting agreement Economic system refers to who answers the basic frugal questions of what, how and for whom to produce. What to produce refers to the weft of goods and renovations, how refers to the presidency agency in which the selected good or service is going to be produced and for whom answers how the produced goods ar going to be distributed. Types of Economic schemas: i. Capitalist parsimoniousness (Free Market Economy): * The basic economic questions argon answered by secluded parties; communication channeles decide what to produce and consumers what to buy. * buzzer of the products is determined by the commercialize forces of demand and supply. * Private lieu is allowed. * Business people induce more interest in setting up business in a necessitous market economic system. ii. socialist Economy ( Command Economy): * The basic economic questions are answered by the g everywherenment or planning authorisation; the presidential term decide what to produce. * Price of the products is determined by the government through its rules and regulations. * All property belongs to the government. * Business enterprises are antipathetical to invest money in business. iii.

Mixed Economic System: * The basic economic questions are answered by the government in partnership with cloak-and-dagger parties. * close to strategic industries are mute by government and private investment is not allowed or encouraged in those industries. iv. handed-down Economi c System: * mint produce goods to sati! sfy their requirements. * They were self-sufficing economies. * The excess products were exchanged for opposite goods. 2. Economic Growth It refers to increase in the production of goods and work in a country over a spot of time. A country is said to be experiencing economic evolution if it produces more goods and services than the previous year. The principal(prenominal) aim...If you want to get a full essay, order it on our website: OrderEssay.net

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