Hong Kongindia Command and Market Economies :: essays papers

Hong Kongindia Command and Market Economies The world is run with economic systems. twain of these economic systems are the market providence and the command economy. These economic systems both greatly differ and are similar in there slipway of controling the factors of production, ownership, and their incentives for efficient production. An area of the world that has a command economy is India. The governing 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, craunch and capital. Within these socialist areas, there is no presence of motivation, a truly(prenominal)(prenominal) important factor in an economy. This is because no matter what they do for their economy, everyboyd forget recieve the same pay. For example, a doctor would get paid the same add together as a dishwasher.This creates unmotivation because there is nowhere to progress to. People siret w ant to work hard for the same pay as someone who doesnt. Also, since the political sympathies controls the factors of production, and not the individual consumersthemselves, it is impossible for the few in power to know the many a(prenominal) needs, and conditions of resource availability, within the whole economy. Therefore, many things of importance are not recognized, or over looked and the economy and pot endorse 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 years into a very prosporous place. This is due to its change to the market economy. Hong Kong is also the freest of economies. The United states of the States 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 un like the command econly becaues their government controls the factors of production. The market economy is more effiecent because the individuals decide for themselves how to answer economic questions, face out for their own personal best interest. This creates motivation, in which the command economy lacks.Entreprenurs also play a large roll in the economy. In Hong Kong, it is extremely easy to start your own business.