Explain The People's Republic Of China Under A Command Economy

A command economy or planned economy is an economic system in which the government or authority has control over the production and pricing of good and services. The authority selects which items and services to produce, the creation and distribution process, and the costs of goods and services. Additionally, the government has control of all lands, capital and different resources. The government or authority decides essentially the most socially effective items to provide. They also create laws and regulations that control state-owned and privately owned businesses. The choice of goods available to customers is higher in the market economy system than in the command economy system. There are 2 types of Command Economy, a strong and a Moderate

As the modern day economy continues to grow, more and more discussion are emerging revolving around what are the factors that led to the successful economic growth in some countries and one country that has been gaining researcher’s interest is China and the development of Beijing from a third world country in the to a developed and Newly industrialized country today.

An economy could be considered the blood of a nation’s body; as everything flows smoothly, the body performs its functions properly. Two major types of economy in the world today are capitalist market economies and socialist command economies. Under a market economy, the people are granted the rights to free enterprise and build the economy through private business; they can create and trade products and services as they wish. Within a command economy, the government controls the land and capital and makes all the decisions involving economic issues. Both of these economies share some goals, but are also quite different in how each functions and each possess their own share of advantages and disadvantages.

Free-market and Command economy are the two-major economy system. It has sparked years of controversies among individuals over which system is better. However, no agreement has been reached. Meanwhile, it is obvious that free-market economy predominates all around the world as the majority of countries are following an economy which free-market process the dominating position.

What are the SEZs in China? Has this policy had an effect on China (what effect), other parts of the world (for example), and if so,

In a command economy, a central authority, or the government, makes majority of the major economic decisions. People have little to no say in the way the economy is run. One major advantage of having a command economy is it can radically change direction in a very short period of time. There are several disadvantages to a command economic system. First, it does not please the people, because products are not produced based on what consumers prefer. It is designed to meet only the wants of the government. Second, a command economy is very bureaucratic, and individuals do not have a lot of rights. Lastly, in a command economy, people do not have the motivation to work hard in their jobs. They simply depend on the government to supply goods and maintain reasonable prices. Countries that are considered command economies are also known as communist economies. Examples of command economies are North Korea and

When Deng Xiaoping took control of China, he recognized that the economy was collapsing, and that his people were worried about class, especially how quickly the upper-class was growing, so he came up with a plan. He was going to open up the country to foreign investors, “But Deng himself undermined the process with his famous call to let ‘some get rich first’ . In practice this meant giving priority to the coast...Private enterprise

Economies around the world are all unique in their own way. The two most common looked into are the command economy and the market economy. A command economy is considered communism and socialism. It is considered communism because the properties are owned, labor is organized for the advantage of the community, and the citizens consume according to their needs. The command economy is also considered socialism because the government runs the basic productive in order to distribute the output in ways that may seem better for the society.

When comparing the U.S. to other countries, our economy is considered a free market economy but technically, our economy is a mixture. Examples of the U.S. as a command economy are, government owned institutions, that includes state colleges, regulations, and subsidies, such as what is used in agriculture to impact the economy. This is considered a characteristic of the command economy. Primarily, the U.S. government does not place limitations on the economy allowing them to be considered a free market economy. According to www.investopedia.com, there are two elements to a free market economy, (a) private ownership of the means of production and (b) voluntary exchanges/contracts. It is here that you are able to be free to do business

A command or planned economy is a system economy where everything about economy is controlled by the government. This means that the government determines what kinds of goods and services to be produced, using a method or manner of goods and services will be made up and who will consume those goods and services. So that, a command economy, it is easier for the government to control the inflation, unemployment and other economic problems. Command economy is benefit for the society because the government seeks to provide for everyone and it maximizes social welfare.

In our society today, there are many distinct types of economies. The three leading economies are Market economies, Traditional Economies, and Command Economies. Each Economy is very diverse and unique from the next. An example of a market economy is in the US, and in a market economy there is a great deal of individual freedom and less government involvement. A market economy is based on Capitalism. A Traditional economy is a small group of people who are their own government. Not many societies today use a traditional economy. In a command economy the government controls all economic decisions. Examples of command economies are communist countries such as China and North Korea. Each type of economy has its own advantages and disadvantages as well as its differences about resources and government involvement.

Feeling this was not enough to boost the economic up, Deng loaned money from IMF and the World Bank “to upgrade machinery and establish new manufacturing and industrial development” (Benson, 48). He opened a total of five towns and villages as SEZs and allowed foreign investors to build factories and hire Chinese to work for them. It might not be the best way to reform the economic as a whole, but it played an important role because it benefited the Chinese workers, the investors, and the Chinese government. During the 1980s, Deng promoted the “open door” policy to encourage foreign investment and to trade with the world. China needed larger quantities of raw materials to fuel its industrial growth so they signed contracts for minerals, timer, and so forth. It had not only provided China with raw materials that were needed, but also improved the relations with other neighbor counties and the US.

During the last few years much of the economy has been deregulated, a process that was well under way before December 2001, the date of China’s accession to the WTO. During the 1990s almost all of the former industrial ministries and state commissions were abolished, cutting the number of institutions and officials at the centre looking to be involved in business affairs. Some old school planning apparatchiks have no doubt survived but there are fewer options for them to slake their thirst for control. Many state-owned enterprises have been sold off and a large proportion of those that remain have lost market share to private domestic firms and foreign-invested enterprises (FIEs).

In April 14th 2011, Professor Hazel, the director of the Center for Global Policy at George Mason University, claimed, “China’s economy begins to shift to a significantly slower and more sustainable rate of economic growth.” This implicates that China has began to find a new patter to economic growth for longer and better development in the future, instead of focusing

China’s economic reform has attracted worldwide attention. From the early stage of mainly export-oriented industries with cheaper labour costs to more recent foreign investments aiming to tap the huge domestic market, China, especially eastern region has gradually opened up to the rest of the world. While this research study is not only of vital importance to China, but also meaningful to the FDI development efforts to the individual regions in other countries.