World Economic System

Market economy, traditional economy, and command economy

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World Economic System by Mind Map: World Economic System

1. Different World Economies

1.1. Market Economy System

1.1.1. Businesses decide what they produce.

1.1.2. Consumers decide what they purchase. Decide if produce worth it

1.1.3. Often runs into problems Few rich, many poor Experience economic depressions Companies choose profit over environment.

1.2. Traditional Economy System

1.2.1. Decisions made personally Most production for shared use by group of family Subsistence farmers - family farming Profit not goal Fading away

1.3. Command Economy System

1.3.1. Government controls everything

1.3.2. Military dictatorship Military leader controls everything Many live in poverty

2. Canada's Mixed Economy

2.1. Three mixed economies

2.1.1. Traditional and Market

2.1.2. Traditional and command

2.1.3. Market and command

2.2. Three types of industry

2.2.1. Primary industry Harvest natural resources

2.2.2. Secondary industry Makes commercial products from natural resouces

2.2.3. Tertiary industry Provides services

2.3. Technological Change

2.3.1. Three stages Commodity Economy- coal for energy, steel Mass-Manufacturing Econmy-petroleum Technology Economy

3. Canada's World Trade

3.1. Trade balance

3.1.1. Trade deficit- more imports than exports

3.1.2. Trade surplus- more exports than imports

3.2. Canadian trade alliances

3.2.1. Important in global trade wars