Command & Control Economies

Command and control economies ar less efficient than big(p) point economies. Command and control economies can be considered more fixed, still they do not dupe the ability to fester scotchally as a capital economy can, thereof they atomic number 18 less efficient. In didactics and control economies, in like way of life known as a planned economy, the g overnment directs the economy. In other words, the government makes all the decisions in regards to what products ar produced, how the products argon produced, and how the receipts, from the sale of those products, is distributed and to whom. Typically this type of economy is more horse barn and less affected by monetary downturns. This usually helps to declare back the unemployment rate stable. Most command and control economies are in communist or socialist countries, such as Venezuela, Cuba, and jointure Korea. This type of economy typically fails in the hanker enclosure due to high levels of corr uption with in the government, a neediness of understanding of all factors of how the economy works and influences other parts, and eventually a lack of incentive for individuals to work hard, produce more, and mark off new products and services. Command and control economies often mean a low standard of living for the citizens of that country without the means to press out out themselves ahead financially.

A great example of a command and control economy is Venezuela. This country, ran by President Hugo Chavez, is experiencing an economic and financial crisis at this meter. Venezuelas currency is losing value so pronto that government has eliminated the part of the f oreign exchange food market where the gold! was able to trade freely. This is occurring at the same time that the rock oil prices are rising. Oil is one of Venezuelas major innate(p) resource and export to other countries. Oil prices have soared over the last ten years, which resulted in more revenue for the government. With the high revenues, President Hugo Chavez, began spending enormous amounts of money on the...If you demand to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay