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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) |