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What is a problem encountered when an economy makes the transition to capitalism from communism?
Wiki User
∙ 12y ago
there is rising unemployment.formerly the government tried to employ more people than necessary,but when there is privatisation,firms become efficient with the view to maximise profit.they sack labour if costs are rising and labour not productive.there is also competition due to which inefficient firms are forced out of business and thus unemployment.
INFLATION-there is the illusion of low price in the planned market-govt sets maximum prices but later on firms set price equal to costs of production.
Wiki User
∙ 11y ago
Wiki User
∙ 12y agoprivatization
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What types of economic systems exist throughout the world today?
capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy capitalism, communism, socialism, and market economy
What are capitalism and communism and socialism?
Capitalism is a free-market system with little or no government regulation. Communism is a system where the market and means of production are owned by the government. Socialism allows some regulation of the economy and is also the transition from capitalism to all out communism.
What political system calls for government control of the economy?
Communism is the political system that called for government control of the economy.
This is a theory of government in which a single party controls the economy and production?
That would be state capitalism.
This type of economy is also known as capitalism?
mixed economy
Is capitalism a type of command economy?
no. only Socialism and communism.
Is Belgium a Communism Socialism or a Capitalism?
Yes, Belgium's economy is a form of capitalism.
What type of economy did russia try to adopt after the fall of soviet union?
When the Soviet Union fell in 1991 and communism was defeated, Boris Yeltsin attempted to adopt capitalism and westernization (democracy) but the transition has not been successful because communism is still threaded throughout the country.
Which system involves total government control of a nation's economy?
Communism is the political system that called for government control of the economy.
Why is the transition from communism to capitalism difficult?
The transition from communism to capitalism is difficult due to challenges such as restructuring the economy, establishing private property rights, and developing market-oriented institutions. Additionally, there is often resistance from those who benefitted under the communist system and concerns about inequality and social unrest during the transition period. Transitioning requires significant time, effort, and resources to navigate these complexities successfully.
What political system calls for government of the economy?
Communism is the political system that called for government control of the economy.
What system combine both capitalism and socialism?
According to pure Marxist theory this is an impossible condition. Capitalism sets up the conditions for Communism, then Communism totally and completely automatically replaces Capitalism at the right historical time. This is a totally deterministic and inevitable transition that cannot be avoided anywhere in the world, according to Marx.
