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• Economic decisions based on habits and customs (the way it has always been done)
• Children work the same jobs parents worked, often farming or hunter/gatherer
• Ex. Eskimos, the Amish, African tribes
Command Economy
Government makes the economic decisions
• Advantages: can act quickly in emergencies, provide for all people equally
• Disadvantages: Inefficient, no incentive to work hard or be creative
Ex. Communist Countries (China, Vietnam, North Korea, former Soviet Union, Cuba)
Market Economy
• Driven by buyers and sellers(competition)
• Supply and demand influence economy
• Also known as FREE ENTERPRISE or CAPITALISM
(No true free market economies actually exist)
Mixed Economy• Individuals and businesses make
decisions for private sector
• Government makes decisions for public sector
• Greater government role than strict market economy
• Most common economic system today
Examples: USA, England, Germany, Russia
Culture
The unique way in which a group of people live.
"The total, generally organized way of life, including values, norms, institutions, and artifacts, that is passed on from generation to generation by learning alone" http://thearticulateceo.typepad.com/my-blog/2011/08/cultural-differences-high-context-versus-low-context.html