Economic Systems

  1. Objective 1-2 Describe the different types of global economic systems according to the means by which they control the factors of production.

A U.S. business operates differently from a business in France or the People’s Republic of China, and businesses in those countries differ from those in Japan or Brazil. A key factor in these differences is the economic system of a firm’s home country, the nation in which it does most of its business. An economic system is a nation’s system for allocating its resources among its citizens, both individuals and organizations.

Factors of Production

A basic difference between economic systems is the way ...

Get Business Essentials, 12/e now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.