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zhuklara [117]
3 years ago
12

How do the various economic systems of capitalism, socialism, and communism create economic imbalances between nations?

Social Studies
1 answer:
weeeeeb [17]3 years ago
6 0

The different economic systems around the world are making for a colorful picture when it comes to the economic development and economic power of the nations. The capitalism seems to be the system that works the best when it comes to economic progress, as this system enables the private sector to develop and produce freely, while the consumers are the ones that determine the demand. Also this system is open to the world for trade. The socialism seems to be doing relatively well in modern times, though it is a system that restricts the trade and usage of the most important natural resources. This makes the economy stable, but it doesn't progress as quickly as the capitalism. The communism tends to be the one that is the most restrictive and damaging form what has been seen by now. The economy is closed, everything is produced and consumed by projections made from the government. This leads to stagnation, and often big problems because of bad estimates, thus this type of economy is often on the verge of bankruptcy.

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