click below
click below
Normal Size Small Size show me how
PCS Global
Types of Economic Systems
Term | Definition |
---|---|
Traditional | bartering - goods for goods (Ex. Paleolithic, Neolithic, early African tribes) |
Mercantilism | colony exists for the benefit of the parent country; usually parent country tries to get all raw materials from colonies (Ex. Great Britain and 13 colonies, Spain - Latin America (gold), France - Indo-China |
Capitalism (Free Market) | private ownership, competition regulates the prices of goods (government involvement only when the majority of people are being harmed) (Ex. Great Britain, USA, Japan, Canada, Germany) |
Communism (Command System) | government controls all means of products through a central committee; comes into power by overthrowing the government and creating a classless society (Ex. Soviet Union, China, Cuba, Cambodia, Vietnam, North Korea) |