Question

economic may be classified as ​

Answer 1

Explanation:

economic classified into two type

Answer 2

Answer:

The economic systems are broadly classified into three categories: (1) Capitalist, (2) Socialist, and (3) Mixed. A better classification, however, may be made using the criteria of property ownership type and mode of resource allocation and governmental control.

Explanation:

Market Economy

This mode of control implies that the resources are allocated by the consumers; the individuals own resources and products The mechanism involves an interaction of price, quantity, supply, and demand for resources and products:

Labor is supplied by an individual to another individual, group, company, or government in exchange of an adequate wage.

Products are consumed if the price is within a certain acceptable range.

Wages are set on the basis of the quantity and quality of labor available to perform a job.

Resources are allocated as a result of constant interplay between the parties involved.

Consumer sovereignty is the key factor in market economy; the consumer has the right to decide what to purchase and can influence production by exercising the power of choice regarding purchases. As long as all the parties involved are free to make decisions, the interrelationship of supply and demand should ensure proper allocation of resources.

Large corporations, labor unions, and policies formulated by the government may limit consumer and business freedom to a considerable extent in any market economy.

Command Economy

This mode of control implies that resources are allocated and controlled by the decision of the government. The activities of different economic sectors are coordinated by the governmental agencies.

Goals for all enterprises in the society are set by the government.

Quantity of products, their price, and producers of those products are determined centrally.

Mixed Economy

This mode of control is characterized by different mixture of market and command economies.

In fact most of the economies around the world today may be defined as as mixed to a certain extent, because pure market economy hardly exists.

Ownership

Private: All resources are owned by individuals.

Public: All resources are owned by the government.

Mixed: A mixture of public and private ownership's.

KEY ECONOMIC ISSUES INFLUENCING INTERNATIONAL CONSTRUCTION

• The global construction companies must be able to identify the issues they may confront while working abroad. The impact of these factors may vary considerably from country to country. Therefore, strategies for handling those issues may be different for different regions.

The factors that are most likely to influence international construction include:

Economic growth:

One of the broadest measures of economic growth and productivity is the GNP or gross national product of a country. It is defined as the total market value of goods and services produced per year by the domestic factors of production of a country; the production by domestic factors could take place either at home or abroad.

Another indicator that is often used is GDP or gross domestic product that measures the value of production that occurs within the country's borders. It reflects economic activity within the country more accurately than done by GNP.

An analysis of economic growth may provide information about the rate of real growth of a region so that a company or an individual can take decisions related to financial investment.

Rate of inflation:

Inflation is a gradual reduction of the purchasing power of money, usually related directly to the increases in the money supply by the federal government.

It is an important aspect of economic environment because of its influence on interest rates, exchange rates, cost of living, and general confidence in a country's economic and political system.

Inflation higher than growth rate contracts economy and usually causes political destabilization that may result in increased political risk

High inflation rate makes the currency unstable leading to difficulties in planning for development.

It is part of a vicious circle leading to a balance of payments deficit, which in turn leads to a devaluation of the local currency and further inflation, and the cycle continues.

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