https://www.intelligenteconomist.com/economic-systems/

Read the short explanation of the 4 basic types of economies. Research two of these types further.

2. Locate one journal article for each of your two chosen economic types. You need to focus on the Abstract, Introduction, Results, and Conclusion. For our purposes, you are not expected to fully understand the Data and Methodology.

3. Summarize these journal articles. Please use your own words. No copy-and-paste. Cite your sources.

5. During the second week of the Module, you will need to reply to the posts of two of your peers. Your replies must focus on increasing knowledge of the class and must advance the discussion further. Simply affirming your peers does not count as a substantive reply.

6. The replies are due by the deadline specified in the Course Schedule.

Please post (in APA format) your article citation.

Peer 1 post:

Command Economy

This first article talks about investing in government rates in terms of command economy. In China, there was a surprising announcement that state-owned shares had been sold. Market responses to this statement have been recorded. With regard to privatization premium, at the date of declaration, it had a negative impact on the profitability of state property. A very symmetrical positive effect was observed in response to the sale announced by the same government. He argues that the difference in these effects is the lack of political transition in the Chinese government to match current economic reforms.

The reason for this is that the positive impact on the profits from the political relations obtained by the state-owned will actually outweigh the cost-effective costs arising from the share in the state-owned. Positive irregular returns are seen in companies with executives who have previously worked in government. This means that individual connections are likely to be replaced by benefits derived from state ownership. Explanations and consequences based on the offer effect arising out of the sale of shares are excluded in both the above cases. In addition, companies in special economic zones were found to have a privatization reduction rate. In these cases, it was also noted that the highest powers belonged to local government discretionary bodies. Companies that pay higher social benefits to their employees since the privatization announcement are in a favorable position. These companies were expected to collapse with the start of privatization.

Mixed economy

The impact of privatization of state-owned enterprises on existing and developing industrial relations in a recessionary mixed economy is thoroughly investigated in this article. This was achieved with the specific aim of recognizing the impact of privatization on union-management relations in Nigeria. A qualitative approach was adopted in this study. In the case of a recessionary economy, privatization of state-owned enterprises does not create an environment conducive to a peaceful relationship between labor and management.

Furthermore, it has also been found that policies related to privatization and its implementation increase labor efficiency and productivity. But this does not guarantee the safety of the work. Fear of dismissal is an evolution of the privatization of state-owned industries and companies. Consequently, it was suggested that the policies being adopted in relation to the privatization of state-owned enterprises should focus on providing increased job security for employees. Only when employees understand that their work is safe enough can they work harder and more enthusiastically than before. Otherwise, employees will have to be demotivated and quit their jobs. In addition, privatized SOEs should also be given due respect for the practical efforts they make to maintain the desired productivity and efficiency in general.

Peer 2 Post:

An economic system refers to the means through which governments or societies organize and distribute all available services, goods, and other resources across a country or geographical region. It is essential to learn economic systems because they regulate production factors, such as physical resources, entrepreneurs, labor, and capital. It is worth noting that an economic system entails many agencies, institutions, among other entities. This paper will expound on the free-market economy and the traditional economy.

Market economy

According to the article “from communism to a free-market economy: a reflection of socio-economic changes in land use structure in the vicinity of the city (beskid sądecki, western polish Carpathians),” a decline of agricultural land as a result of different political and economic factors have left agriculture unreliable as a source of profit (Bucała-Hrabia, 2017). As a result of pressure from socio-economic changes, the economy has experienced the transition from the traditional communist system to a new free-market economy. According to the research, the primary source of income for previously agriculture-dependent areas is off-farm activities, such as agro-tourism, construction, and services (Bucała-Hrabia, 2017). As a result of the transition, the new free-trade economy has created adequate non-firm jobs. Besides, the economy has facilitated innovation as the business owners strive to satisfy consumer needs.

Traditional economy

Traditional economies emphasize on trading products and services that enable business participants to subsist in a community or a specific region. According to the article “An Appraisal of African Traditional Economic as a Heritage,” the characteristics of a traditional economy are well elaborated (Oluwabamide, 2015). Despite that these economies are being westernized as a result of economic interactions, the components are still visible. The economy of a typical traditional economy revolves around farming, livestock herding, food gathering, and hunting. A distinguishing characteristic of these economic activities is that they use simple technology. The study analyzed the features of the traditional economic organization of Nigeria (Oluwabamide, 2015). From the research findings, the productive units are small and revolve around cattle rearing, farming, and fishing.

Please write a 150 word response to both the peer posts and summarize the journals with 350-400 word response.

Please post (in APA format) with intext citations.

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