The world Economy refers to all of the economy activity with in each country and between countries around the world considered as the international exchange of goods and services that is expressed in monetary units of account.
Define World Economy
The system of international partition of labor and mutual economy relations among exclusive national economy. The world economy integrates all aspects and desire in commercial, economy, financial, and scientific and technological ties between nations.
Types of Economy
There are four different types of economy:-
1. Traditional Economic System
Traditional economy is an economic system in which traditional, customs, and beliefs there are helps goods and services the economy. Traditional economy mean by bartering and trading.
Characteristics of a traditional economy
- Center around family or tribe.
- Exists in a hunter, gatherer and nomadic society.
- Trade relies heavily on barter.
- Produces only what you need surplus or leftovers are rare.
- The eventually evolve to form some form of currency for trade.
2. Command Economic System
Command economy system is a government rather the free marketing, and the goods produced should be prices in which offered for sale in market and investments and income.
Characteristics of a command economy
1.The government is in control for price goods and services.
2. Government are make all decisions for financial in the country, hourly rate of pay workers and assign people in the jobs.
3. They are people survive hourly rate of pay regulated and will tend to try don’t break the rule and sell stuff on the market to make money.
4. State are absolute strong all resources.
5. Command economy has state as well privately owned entities are controlled state, such as people power politicians, orders to buyers, sellers and investors.
3. Market Economic System
Market economic system is a process of buying and selling, and
price of goods and services are control in discussion all countries individual citizens and businesses.
Characteristics of a market economic system
Private property :- The most of goods and services are private owner can makes legal sell or lease this property their fixed assets give right profit ownership.
Freedom of Choice:- Property owners are free for produce sale and purchase goods and services in the market.
Motive of self interest:- Every people sells are wares the bidder while the lowest price for purchase person are selfish in benefits in economy over the long time.
Competition:- pressure of competitive less price below in society in goods and services provided.
System of Market and prices:- the market economy is relies on sell goods and services and all buyers and sellers are equal survive in market.
4. Mixed Economic System
Mixed economic system is defined as an combines of both capitalism and socialism in mixture of other markets and economic plane, public ownership and private ownership free markets and economic system.
Characteristics of a Mixed economic system
- Economic welfare:- The most important procedure of the success of mixed economic their are many sector provides large employment opportunities.
- Economic planning:- A government adopt the instrument of economic planning they are public sector which have according to planning system and achieve procedure and objects.
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