eco assignment.docx - ECONOMIC SYSTEMS OF UNITED ARAB EMIRATES(UAE AND DEMOCRATIC PEOPLE\u2019S REPUBLIC OF KOREA(DPRK An economic systemis a system of

eco assignment.docx - ECONOMIC SYSTEMS OF UNITED ARAB...

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ECONOMIC SYSTEMS OF UNITED ARAB EMIRATES (UAE) ANDDEMOCRATIC PEOPLE’S REPUBLIC OF KOREA (DPRK)An economicsystemis a systemof production, assetsdistribution and production of goodsandserviceswithin a society or a geographical area. It includesthe aggregateof the numerousestablishments, businesses, entities, decision-making approachesand patternsof intakethatincorporatethe economicstructureof a given community. As such, an economicsystemis aform ofsocial system. As such, an economicsystemis a form ofsocial system. An economicsystemdefines how all of theentities in a financial systemhave interaction. Defining them todayis a whole lotmorecomplexthan it used to be. Ancientsystemshave beenrathereasy– tradewasexecutedusingbarter and there had beenonly a fewtreaties and regulationsof engagement.The economic system adopted in North Korea is the centrally planned economy or commandeconomy. All selectionsconcerningmanufacturing, distribution, salaries, funding,and costsaremade througha central authority– commonlythe government. The closestexamples of this typeoffinancial systemtodayare North Korea and Cuba (to a lesser extent). In a deliberateeconomy,alsocalleda centralized economic system, controlledfinancial systemor command economicsystem, the centralgovernmenthas planners who make all of thedecisions. The centrallyplanned economic systemis oftenassociated withMarxist-Leninist conceptand with the formerSoviet Union, China, Vietnam, North Korea and Cuba. Whereas, the UAE has adopted mixed marketeconomic system. The mixed economies everynow and thenget into hassle, at which pointthe governmentfeels compelledto intervene.Sometimes, whilelawmakers considera fewplayersare being exploited unfairly, or the levelplayingfieldfor businessis underneathdanger, the governmentmay additionallyemerge asconcerned. Countrieswith a mixedeconomic systemincludeIceland, Sweden, France, theUnited Kingdom, United Arab Emirates, the United States, Russia and China. Thesenationshavea mixof governmentspending and free-marketsystemsprimarily basedon the proportionofgovernmentspending as a percentageof gross domesticproduct.
FEATURES OF ECONOMI SYSTEM IN NORTH KOREA: Economic plans:In a centrally planned economy, the government has a multi-year centralmacroeconomic plan which sets aims like nationwide employment rates and what thegovernment-owned businesses will manufacture. In this economy, government authorities setnational monetary needs, including how and when to createeconomic development, how toassign assets to production, and ways to deliver the subsequent output. Mostly this takes the formof multi-year plans that span the whole economy.

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