Hong Kongindia Command and Market Economies :: essays papers

Hong Kongindia Command and Market Economies The world is expire with economic systems. Two of these economic systems are the market economy and the ascendency economy. These economic systems both greatly differ and are similar in there ways of controling the factors of production, ownership, and their incentives for efficient production. An area of the world that has a influence economy is India. The g everywherenment controls and makes decisions with the factors of production. The factors of production are the resources used to produce goods and services, such as lonad, labor and capital. Within these socialist areas, there is no heading of motivation, a very important factor in an economy. This is because no enumerate what they do for their economy, everyboyd will recieve the corresponding pay. For example, a doctor would get salaried the same amount as a dishwasher.This creates unmotivation because there is nowhere to construct to. People dont want to work ha rd for the same pay as someone who doesnt. Also, since the government controls the factors of production, and not the individual consumersthemselves, it is unthinkable for the few in power to know the many needs, and conditions of resource availability, inwardly the whole economy. Therefore, many things of importance are not recognized, or over looked and the economy and people suffer from the loss. It is present in these areas of socialism that many of the people suffer from poverty because of this economic system.Hong Kong used to be a command economy. Hong Kong was very poor. This poor area quickly changed over the old age into a very prosporous place. This is due to its change to the market economy. Hong Kong is to a fault the freest of economies. The United states of america also has a market economy. In a market economy, or free enterprise economy, the individuals own the factors of productin, and make the decisions with them. This is contradictory the command econ ly becaues their government controls the factors of production. The market economy is more effiecent because the individuals decide for themselves how to function economic questions, looking out for their own personal best interest. This creates motivation, in which the command economy lacks.Entreprenurs also play a large ringlet in the economy. In Hong Kong, it is extremely easy to start your own business.