Market Economy System Vs Command Economy System Assessment Answer

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Question :

Answer the following questions in a Word document:

  1. What do economists mean when they say "ceteris paribus"?
  2. Compare and contrast the characteristics of a market economy system vs a command economy system.

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Answer :

I completely agree with you. The Chinese government controls almost all Chinese companies. Not only Huawei, but companies like Alibaba are also on this list. It shows that the communist government is trying to exert its power over the private sector companies. Setting aside this factor, the Chinese government always favour the national companies over the foreign companies. Interestingly, the Chinese government provides fund, technological expertise and human resource wherever required to local companies to compete with foreign companies as a part of guarded globalisation. Through guarded globalisation, China exempt few companies to enter into the chinse market and therefore, smoothens the path for growth of local and national companies. Therefore, I believe that China even will increase its exports and its presence outside the country, the Chinese market will be dominated mainly by command economy.