This report will outline and evaluate the following differing economic systems, free market, mixed market, planned/command market. An economic system
“defines how the various entities in an economy interact”
“The particular way in which the economy of a country is organized, for example the economy is controlled by the government or allowed to develop in its own way” These two statements suggest how factors can affect economic systems and there are many ways.
1) New Zealand has a population of 4.5 million, with an unemployment rate of 6.4% in 2015. New Zealand is capitalist which means
“What to produce is determined by consumers, how to produce is determined by producers, and who gets the products depends upon the purchasing power of
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1D) There was a CPI (Consumer price index) inflation increase (+4.3%) in 2015. CPI is
“Internationally comparable measure of inflation following international legislation and guidelines, The CPI is the government’s inflation target”
The target is usually
“2 per cent since December 2003, when the Chancellor of the Exchequer announced that in future monetary policy would be based on a ‘new’ measure of inflation - the CPI.”
Suggesting prices will go up due to inflation but not much, however some countries have more CPI inflation than others (Chile +1.8% than Pakistan +7.4%) due to corruption, the state of the city or country as a whole could affect the CPI. for trade
“New Zealand’s average tariff rate is 1.6 percent”
(However because they are part of unilateral trade liberalization and participation in trade agreements they have low non-tariff barriers)
This shows us top 10 countries that receive New Zealand goods. The most being Australia (21%) exporting about $9,738 million in