Benefits Of A Country Moving From A Economic Economy

â€Å"Discuss the extent to which a country moving from a centrally planned economy to a more market driven economy is in the interest of both consumers and producers†. A transitional economy is an economy which has previously had a centrally planned economic system of resource allocation and is now allowing market forces, such as demand, supply, price and free enterprise to operate in at least parts of the economy. A centrally planned economy, that is also called command economy, is an economic system in where the country’s government operates production facilities. Free market economy is an economic system where prices and wages are set by unrestricted competition between businesses, without government regulation or fear of monopolies. Countries like: Poland, Vietnam, Albania, Czech Republic, China and most of CIS countries that used to be a part of communism area can be taken as an example of countries that have moved from centrally planned economy to a more market driven economy. This essay is going to focus mainly on China, where both consumers and producers gain some benefits from a transitional economy. China’s transition from central planning has assumed a trajectory quite different from that of Eastern Europe and the Soviet Union. The idea of this transition is that prices will regulate themselves. Supply and demand will reach the point of equilibrium where the most money will be made. However, what is good for businesses not always good for customers. The mainShow MoreRelatedEssay On Asia717 Words   |  3 Pagessustained economic growth, says the IMF’s Finance Development magazine: overcoming the middle-income trap, improving its institutions and governance, coping with an aging population, curbing rising inequality, and promoting financial development. Asia is the origin of all the initial acknowledged civilizations except that of Egypt; of most of the great language relations; and of all the great faiths. 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