Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of

Question

4 years ago

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Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of

the second want to try more free market-based policies. What actions would likely occur in one but not the other industrializing economy?

Business

1 answer:

attashe74 [19] · Answer 1 · 2021-11-09T00:50:44+03:00

Answer:

In the country that promotes free-market economy is expected to start seeing firms arriving in this country and invest in those activities where this country has a comparative advantage.

Explanation:

This would lead to an efficient allocation of productive resources taking the economy to optimum production. The technology and tools will rapidly spread, and the industrialization process will be achieved. In the other country, investment and technology implementation is lead by the government allocating resources inefficiently and delaying industrialization.