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Economic Systems in the World | International Business | From A Business Professor

Generally, a society’s economic system answers three fundamental questions: What do we produce, how do we produce it, and who receives it? By definition, an economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems regulate factors of production, including land, capital, labor, and physical resources. It encompasses many institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community. We can identify three general types of economic systems in the world: these are market economy, command economy, and mixed economy.