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Why are the nations with centrally planned economies sometimes slow to succeed when they privatize industry?
Wiki User
∙ 12y ago
A highly organised centrally planned economy will be a lot more efficient than a new and disorganised market economy, as it takes time for consumers to reveal their preferences, industry to make investment and products to be produced at rates which are efficient.
Wiki User
∙ 12y ago
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Why are nations with centrally planned economies sometimes slow to succeed when they privatize industry?
they lack experience running profitable firms, are often corrupt and have sociopolitical agendas that conflict with efficient operations
What does it mean to privatize an industry?
To privatize an industry mean to transfer ownership of something from the government to the private sector, or to the public, which increases competition.
Why are nations with centrally planned economies sometimes slow?
Central planning offered a means to concentrate scarce economic resources on the development of industry and infrastructure, but it never resolved the problem of identifying and responding promptly to consumer wants and adjusting rapidly to wider economic change expressed in capitalist economies through the market. In practice its accounting mechanisms also tended to prioritise quantity rather than quality, promoting heavy industry at the expense of satisfying consumer demand.
How did economies of sale impact industry the US?
politicts do
What are the differences between internal and external economies of scale?
AnswerEconomies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
Why are nations with centrally planned economies sometimes slow to succeed when they privatize industry?
they lack experience running profitable firms, are often corrupt and have sociopolitical agendas that conflict with efficient operations
Why are nations with centrally planned economies slow to succeed when they privatize industry?
they lack experience running profitable firms, are often corrupt and have sociopolitical agendas that conflict with efficient operations
What does it mean to privatize an industry?
To privatize an industry mean to transfer ownership of something from the government to the private sector, or to the public, which increases competition.
Why are nations with centrally planned economies sometimes slow?
Central planning offered a means to concentrate scarce economic resources on the development of industry and infrastructure, but it never resolved the problem of identifying and responding promptly to consumer wants and adjusting rapidly to wider economic change expressed in capitalist economies through the market. In practice its accounting mechanisms also tended to prioritise quantity rather than quality, promoting heavy industry at the expense of satisfying consumer demand.
How did economies of sale impact industry the US?
politicts do
What are the differences between internal and external economies of scale?
AnswerEconomies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
What made steel an important industry?
There are a number of things that made the steel an important industry. This was mainly due to the various uses of steel and the industry boosted most economies.
What has slowed the economies of laos and Cambodia?
because the industry is undeveloped because of years of isolation
What type of manufacturing is common in subsistence economies?
Obama white :D
When did Concord become capital of NH?
AnswerConcord was centrally located and a hub of the trade industry as well as the railroad industry. It was therefore a logical choice to be made the capital in 1808.
Which sector of industry is often the most important in the most developed economies?
Time mean Busniess
How did Adam smith believe individuals would help their he countries economies without government regulation?
he believed they would perfer domestic industry to foreign industry
