StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

What is an Economic System - Essay Example

Cite this document
Summary
This essay "What is an Economic System" is about the financial mechanisms that are working not only within the country’s own domains but also interacting with the economic regimes of the different economic world bodies and that of the other countries…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.4% of users find it useful
What is an Economic System
Read Text Preview

Extract of sample "What is an Economic System"

What is an Economic System' An economic system is comprised of the financial mechanisms which are working not only within the country's own domains but also interacting with the economic regimes of the different economic world bodies and that of the other countries. All of these economic systems work with each other to promote international trade, financial systems, industrialization regimes and so on. Economic systems benefit the people in a broad sense but in essence these work to promote the basis of a country's economic problems and woes on a proactive basis. It looks to solve the issues which could crop up in the wake of the economic recessions, global downslides in stock markets, etc. For encouraging growth and prosperity, it is deemed significant to understand that funding alone could not be the sole savior for a newly industrialized economy. (Wallace, 1992) There needs to be proper micro credit and financial system in place so that the newly industrialized economy can get back on its feet in the wake of missing funding mechanisms. This indeed is the order of the day when it comes to the developing nations which are doing their best to turn the tide that is bent to be against them. In an economic zone, globalization plays a significant role at increasing trade on an international front which as compared to the global economy, is much faster and ahead of its time. Furthermore, we can predict an increase in the flow of capital that has been coming from the global regimes which might include for the foreign direct investment as being one part of it. Then there are the agreements which are signed on a global scale that eventually lead to world bodies like WTO, IMF and others. Global financial systems also come to light as their developmental work gets thumbs up. International transactions speed up as the world bodies like WTO, WIPO, IMF and the like play their role in a more coherent and active manner. Economic practices like global sourcing or outsourcing as we know of it, off-shoring and others increase courtesy the multinational concerns. In a changing capitalistic business environment which is spread all over the world, IMF has sustained itself on the principles of removing poverty right from the deep root levels. What this means is that the motto of IMF is to understand the psyche of the rich nations and to adopt policies which would make the poor and under-privileged member states to get back on their feet or to make them stand at a position from where they can reach ascendancy. This will harness their hidden strengths and provide avenues of strength so that problems could be brought to a halt at the earliest. IMF finds out the mechanisms through which these problems could be detected and then tries to ascertain the exact basis under which problems do arise. (Hughes, 2002) What this gives IMF is a pathway to block the way for the troubles that come in the way of the member states and also present a destination where these countries have to reach at a certain point in time within the future. The aspect of removing poverty from the member nations' economies is an interesting aspect since IMF has to take care of the profits and incentives of the rich nations as well whilst providing benefits to the already down-trodden nations. The international economic relations between different states and countries has promoted as well as saved the varied interests of the nations when it comes to the relevant discussion regarding the economic diplomacy. The superpowers of the world are focusing their attention on the well being of their respective economies whereby the production levels in these countries in relation to different goods and the provision of services has increased and got better in the years that have passed by. There is so much competition that a nation cannot stay at a place for a considerable period of time and it needs to evolve and change its direction every now and then. Economic diplomacy ensures that the countries remain on their toes to the ever changing market conditions and remain attentive to the industrial amendments which happen from time to time. Thus the countries carry out their external economic relations with the help of the tool that we call as the economic diplomacy. This is not a new phenomenon in the related contexts but surely one which will stick on for years to come in the field of economic development and prosperity of nations. The changing role of the nations in the wake of their joining different alliances and treaties like NAFTA, WTO, EU, ASEAN and the like suggests that there is constant upheaval on the domestic and international front and that the diplomatic activities will continue to suffice in the times to come. The integration of trade into the world economy has really proved helpful for the developing countries as they can promote economic growth, development as well as poverty reduction within themselves. World trade has been increasing at an average rate of six percent for the last 20 years, which is twice the rate of world output. The integration of the world economy with the help of trade has lifted the living standards of the people within these developing nations, which is a positive sign. Sustained and consistent economic growth requires policies that can open trade and investment with the rest of the world. There is proof to it and it is that there has not been a single nation that has achieved economic stability without being open to the world for trade. The global markets could be provided more benefits and incentives to understand their own selves and the industrial basis if they are given more room for interacting with the big wigs present within the domains of the WTO and for this to happen, there is a dire need to have a balancing mechanism in place. (Sampson, 2005) Since the world is shrinking with the changing times as there is so much advancement in technological concerns and the like, the requirement is to make sure that WTO delivers quantity rather than raising concerns which are not to the benefit of any individual, party, organization or country on the same token. Thus the society expects a lot of goodness coming with the help of building the comparative economic systems because it essentially solves the major chunk of the problems which are encountered by any nation. The society has a direct role within the whole conundrum and the manner under which the society is taken hostage under an economic recession is also something to ponder deeply. Economic disparities and the like could mar the financial systems which are present within any country and it is best advisable to make use of measures which could harness the growth potentials as well as provide back-up plans for the economic downturns. Personally speaking, I believe that an economic system holds the basis for any nation's progress. If it is not present, then there are maximum chances that a country could fall down on its feet sooner rather than later. Economic systems look to solve the problems left, right and center. A strong economy could easily make its way within the WTO, IMF, World Bank regimes while a slow-moving, dying economy could consider itself a lost cause within the global financial systems and international economic and trade concerns. All said and done, for the societal manifestation and that too in a very well documented manner, it is must to have a sound economic system in place and this can only happen if adequate measures are undertaken by the respective governments. Works Cited Hughes, Steve. Global Governance: Critical Perspectives. Routledge, 2002 Sampson, Gary. The WTO and Sustainable Development. United Nations University Press, 2005 Wallace, Iain. The Global Economic System. Routledge, 1992 Word Count: 1,278 Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic System Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Economic System Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/business/1532178-economic-system
(Economic System Essay Example | Topics and Well Written Essays - 1250 Words)
Economic System Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/business/1532178-economic-system.
“Economic System Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1532178-economic-system.
  • Cited: 0 times

CHECK THESE SAMPLES OF What is an Economic System

Ecomonic Systems

Economic Systems Name Professor Institution Course Date Economic Systems Introduction economic system entails how the state apportions and utilizes limited resources it possesses as necessitated in satisfying all its natives' requirements.... Controlled economic system The government exercises its full right in assigning and determining to the details the verdict regarding diverse resources (Kamimura, Burani & Franca, 2011).... The system comprises of varied processes like distributing, fabricating, organizing, motivating labor and circulating human labor fruits....
4 Pages (1000 words) PowerPoint Presentation

Chinese Economic System

The paper "Chinese economic system" discusses that the Chinese economic system is an example of the socialist economy in the world.... This issue is one of the most sought after topics for researchers because, in recent years, much flexibility has been allowed in China's economic system.... In the Capitalist economic system, which is alternatively called the market economy, the forces of demand and supply are allowed to operate....
17 Pages (4250 words) Essay

Introduction to the Economics System

Free market economy A free market system is an economic system in which the state's government does not interfere with businesses.... There are four main types of economics systems, namely; the mixed economic system, market economies, command economic systems, and the traditional economic system.... In a traditional economic system, society takes precedence over individual interests.... In the mixed economic system, most decisions are made by individuals in the market....
4 Pages (1000 words) Essay

Characteristics of a Market Economy

The Essay Title is Centered and Capitalized Free-market economic system is found to be more effective than mixed economy because of several reasons.... Free market economic system induces competition among different companies for there is no external evaluation.... Mixed economic system is thus considered less efficient than a free market economy.... In a free market economic system agreements are made faster compared to a mixed economy system....
4 Pages (1000 words) Essay

Islam Economic System

Though 'Capitalistic' in nature, the Islamic economic system is not, however, based on the European or American capitalist economic principles, which in no way heed moral or ethical conceptions.... The Islamic economic system also laid down the principle of the equality of value between labor and capital, by recognizing that labor should be accorded equal consideration with capital--in fact that it can itself be regarded as form of 'capital'.... slam's economic system is not merely a matter of broad appeal to voluntary charity; rather, it gives a more comprehensive approach or view of economic life, which in turn is based on the basic teaching in the tenets of Islam....
9 Pages (2250 words) Essay

Types of Economic Systems in Political Economy

an economic system provides the basis upon which answers to these fundamental questions can be established, however, it is important to understand that different economic systems answers these questions differently.... n order for any economic system to run efficiently and satisfactorily, it must be able to provide answers to several questions in the economic context.... For instance, the problem of scarcity of resources requires carefully thought out and reasoned answers to such questions as; what to produce, how to produce it, and who gets what is produced....
7 Pages (1750 words) Essay

Comparative Economic System of the South Korea and North Korea

South Korea though possesses an industrialized economy but is often subjected to a lot of issues that are of long term such as aging population, large dependency on On the contrary the government of North Korea in order to improve the economic system plans and develops strategies and even focuses on its major goal of being prosperous and a strong nation.... However the overriding concern of the government is its political control that is likely to inhibit certain fundamental reforms in the present economic system of the region....
7 Pages (1750 words) Term Paper

Islamic Economic System Comparison with Russian Economic System

The Islamic economic system is a type of economic system which is based in the principles of Islam and has its foundations from the Islamic traditions and scriptures.... The main features of Islamic economic system are moral foundations, behavioral norms which are derived from the.... The paper "Islamic economic system Comparison with Russian economic system" is an exceptional example of an essay on macro and microeconomics....
6 Pages (1500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us