There are many advantages to a free market economy. They range from the moral issues to the practical issues. We will deal mainly with the practical ones.
Unprecedented innovation - Free markets are wrought with inventions and the capital to research them. Countries classified as having a free market have been responsible for the vast majority of inventions since the 19th century.
Very high-income mobility - This means that under a free market system it is easier to move around income brackets. It is just easier to become rich or poor when you are left to your own devices as opposed to a controlled economy where resources are allocated by the government.
It is because both the private sector and public sector have a say in answering the basic economic questions, thus, there will be a degree of high efficiency (due to the private sector involvement) and social welfare too (due to the public sector involvement).
It allows the Government to intervene when the economy faces market failure. The mixed economic system allows markets to operate freely until it fails to allocate resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a completely free economic system, Government agencies would not have the means of power to be able to intervene.
There are many ways to describe the market structure of the automotive industry. Here are two:
One of heterogeneous buyers makes up the population and nearly homogeneous sellers. This means that everyone (the population) needs a car (because a car is not a luxury item), but everyone has different needs (i.e.: compare a mother of 4 to a construction worker). Thus, buyers are everyone in the population, and they are heterogeneous (different). However, sellers are practically the same. GM, Ford, Chrysler, Nissan, Honda, Toyota, etc all offer the same products. Thus, they are homogeneous (similar).
Buyers with high brand-preference and highly marketed sellers this means that many automobile buyers have a brand loyalty, and sellers market to cultivate that loyalty. A great example of this is Jeep and Harley Davidson. Both companies have created a kind of community amongst their owners (I am sure we have all seen two Jeeps passing and the driver?s wave at each other).
This depends on the country. Most currencies, however, were based on gold and silver.
In America, in the 13 colonies, tobacco was mostly used as a type of currency.
1- Europe (remember Italy, French, UK and Germany are 4 world's power) 2- USA 3- China.
2006 GDP Figures from the CIA World Fact book, in Trillions of dollars, purchasing power parity:
European Union: 13.080
United State: 13.060
China: 10.210
Prior to 2005, and probably back to 1942, the United State surpassed the EU.
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