Friday 28 November 2014

Does every country have a private sector?

Does every country have a private sector?
Private sectors exist in all economic systems,weather it's a command, free or mixed economies. What's important to understand is the role of the private sector in each economic system. In free market economies (laissez faire), the government stands back and let people work, controlling and monitoring the economic factors from a far and letting the invisible hand do the work (ex. improving neighborhoods, creating job opportunities, etc.).
In command ecnomic systems, the private sector has a marginal role because the government has control over all major businesses like oil and communication.
The mixed economy is a combination of both.

by A.O.-King

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