Modern Business in Comparative Perspective - Essay Example

The system is characterized by static standards of living and the interest of the community supersedes that of individuals (Gregory & Stuart, 2014). The command (regulated system) is an economic system where the economy is either controlled by the government or a corporate body as the centralized power. They regulate the distribution and use of resources. In addition, these bodies control wages and prices as well as the individual tasks (Lopus, 2013). This system has the potential of creating nutritious supply of resources to the people.

Socialism is an example of command system where governments have certain level of control in socialist nations. Governments in state socialist own and operate commercial sectors for social purpose. On the other hand, in the market economic system, the government does not control major resources and the vital facets of the economy. Individuals make the economic decision such as how to invest their resources, type of job to take, and goods and services to produce. Different organizations influence the economic activities by influencing the supply and demand for resources and goods or services (Duignan & Britannica Educational Publishing. (2013). It is similar to free market system.

In case it is a pure market system, then the government is completely absent on the economic decisions or economic affairs. In the 19th century, the USA was very close to the pure economic system. However, a mixed economic system synchronizes both the elements of command and market economy. Despite the fact that individuals make decisions in the market, the government influences the distribution and allocation of resources. Currently the US economy is a mixed economy (Gottlieb, Tilly & Shorter, 2013).

Corporate economic systems have exhibited diversity in many countries. This is attributed to the different situations in each country such as: a country’s developmental stage, business and government relation, labor