Please address the following: Discussion 2
The economic systems section of Chapter 2 in Global Marketing (MKT320) discusses seven criteria to categorize an economic system. Describe the economic system of the country (Australia) you chose last week based on these seven criteria.
Also, please respond to the following post.
Economic systems include market capitalism, centrally planned capitalism, market socialism, and centrally planned socialism. Market and centrally planned economies differ based on the level of government involvement. Ireland is part of a market capitalist economic system. As defined in chapter 2 of “Global Marketing”, market capitalism is where individuals and firms allocate resources and production resources are privately owned. This type of economy is governed by forces such as supply and demand.
Ireland is economically free and ranks number five based on the economic freedom score. The legal system is based on common law, so laws are based on previous experiences which influence decisions. The country is small and is dependent on trade. Ireland currently has 45 trade agreements with a tariff rate of only 3%, which is close to the United States. The smaller tariff rate allows for more trade between countries and increases the amount of product flow in and out of the country. Their labor market has a high score based on the scarcity of regulation. The country is financially stable and continues to reconstruct and improve capitalization.