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A transitional economy is an economy moving from a central command economy to a free market economy (or the other way around.)

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14y ago

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Which country is not a transitional economy?

mexico


What kind of economic system does Macedonia have?

Macedonia has a transition or transitional economy!


What kind of economic system does Poland have?

Capitalist: class ownership, wages system, production for sale.


What is a transition economy?

A transition economy or transitional economy is an economy which is undergoing structural changes, changing from one type of economic system to another type.Transition economies usually refer to economies undergoing a transition from a centrally planned economy to a market economy. These type of economies undergo economic liberalization (introducing market forces for prices), economic restructuring, privatization of state enterprises, and the creation of a financial sector (which takes the role of the dismantled planning system).A transition economy may also refer to a long term process of building socialism, in which a capitalist economy undergoes rapid development with the eventual goal of establishing a socialist economic system. Today countries such as Cuba and Vietnam are still officially undergoing transition from rural economies or mixed economies to socialism (in Vietnam the system is officially called "socialist-oriented market economy").


Why is china said to have a transition economy?

Some time ago, the Chinese Communist Party decided that planting seeds of a free market economy would be in the best interests of the entire nation. China has made substantial strides in this area. One prime example is that a stock exchange exists in Shanghai. Despite this trend, the transition to a free market economy cannot advance as long as China has a one party system. Based on the one party system, the so-called transitional economy, is at the mercy of post modern day Marxist-Leninists who may decide to revert back to total central planning.