The advantages and disadvantages of command market economy

You can help by adding to it. September In the Hellenistic and post-Hellenistic world, "compulsory state planning was the most characteristic trade condition for the Egyptian countryside, for Hellenistic Indiaand to a lesser degree the more barbaric regions of the Seleucidthe Pergamenianthe southern Arabianand the Parthian empires [ The Soviet government founded Gosplan inbut the period of the NEP intervened before regular Five-year plans started in

The advantages and disadvantages of command market economy

One allows the free market to dictate pricing, production, investments, and income. Another allows for the government to dictate these items.

The advantages and disadvantages of command market economy

The third is a hybrid between these two ideas. There are several advantages and disadvantages of a command economy to consider. What Are the Advantages of a Command Economy? Operations are consistent within a command economy. Within the structure of a command economy, the businesses which do function are operating at the behest of the government.

Their structures are dictated by the government, so there is consistency within the operational structures of each business. Instead of attempting a market takeover or trying to dominate a market share, the businesses work to produce the goods the society needs to function.

It creates a flexible industrial sector. Industries are directly operated or controlled by the government in a command economy, so their resources can be applied to whatever project needs to be completed.

This creates a flexibility within the industrial sector that other economy formats cannot match. If there is a massive project that needs to be completed, the government can quickly transfer the resources that are necessary to get the job finished. The exact demands of a society can be met.

Within the structure of a command economy, the government seeks to maximize its efficiency. To do this, it will attempt to meet the exact demands that people have.

By limiting over-production of items, there is less waste that occurs within the society. This creates more resources for the government to use in other areas.

This may limit personal choice, but it also reduces the chances of a shortage occurring when production rates are based on accurate resources. Any resource can work with any other resource. Can you imagine Apple and Samsung working together to produce technologies? Or Ford and General Motors working together to create automobiles?

In a free market economy, businesses compete with one other to produce better products. In a command economy, any resource can be dictated to work with any other resource.

This makes it easier to produce products on a larger scale because all resources, not just individualized business resources, are actively working to benefit society. It offers socioeconomic equality for much of the population. Wealth inequality in the United States is considerably higher than in any other wealthy nation.

In a command economy, this level of inequality does not exist, though the individuals within the government do typically have more wealth availability than the rest of the population.

Acute demands can be quickly met. Within a command economy, the full resources of the government can become active at any given time. If an emergency occurs, such as a natural disaster, then it becomes possible to meet the general needs of the population with a greater speed than in other economy structures.

This makes it possible for households to recover from an emergency quicker. What Are the Disadvantages of a Command Economy? It is a governmental structure which reduces personal freedoms. Because all economic structures are at the beck and call of the government, personal freedoms are limited within a command economy.The advantages and disadvantages of a command economy show that a lack of competition can be problematic.

It may be a society that equalizes income and production to create more socioeconomic equality, but it also means that equality is defined by the centralized government. Overview. Reid and Bojanic() claimed that, " The term market research informs relatively narrowerly than Marketing Information System(MkIS) which is altered from the term management information research indicates that information is not collected for a specific reason or project; the major objective is a one-time use.[2].

Extracts from this document Introduction. Advantages and Disadvantages of Planned Economy. Advantages Disadvantages * The distribution of wealth is more equal because goods and services can be priced so that everyone can afford them and because no individual can become very rich without making a profit.

The advantages and disadvantages of command market economy

Paradoxically, the enduring competitive advantages in a global economy lie increasingly in local things—knowledge, relationships, and motivation that distant rivals cannot match. A command economy can be advantageous by eliminating unemployment but can also be a disadvantage by producing unnecessary products.

A command economy is when the government owns all or most aspects of the economy. A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced and the price at which the goods are offered for sale.

The command economy is a key feature of a.

Advantages and Disadvantages of Planned Economy. - A-Level Economics - Marked by