A market economy based on supply and demand with little or no government control.
BRAZIL- Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. Rising inflation led the authorities to take measures to cool the economy; these actions and the deteriorating international economic situation slowed growth to 2.7% for 2011. Despite slower growth in 2011, Brazil overtook the United Kingdom as the world's seventh largest economy in terms of GDP. Urban unemployment is at the historic low of 4.7% (December 2011), and Brazil's traditionally high level of income equality has declined for each of the last 12 years. Large capital inflows over the past several years have contributed to the appreciation of the currency, hurting the competitiveness of Brazilian manufacturing and leading the government to intervene in foreign exchanges markets and raise taxes on some foreign capital inflows.
An economy in which exists a mixture of free enterprise and government control.
JAPAN- The Japanese economy was a technologically advanced economy in the post war years following World War II. They achieved this with the coming together of government-industry cooperation, a strong work ethic, mastery of high technology and a small defence allocation. Kieretsu was the name given to the close interlocking of manufactures, suppliers and distributors. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A tiny agricultural sector is highly subsidised and protected, with crop yields among the highest in the world. Japan imports about 60% of it's food, has the largest fishing fleets accounting for nearly 15% of the global catch. A sharp downfall in business investment and global demand for Japan's exports in late 2008 pushed Japan further into recession. Government stimulus spending helped the economy recover in late 2009 and 2010. In 2011 Japan stood as the forth-largest economy in the world after China (2nd) and India (3rd). A massive earthquake in March 2011 which disrupted manufacturing and recovery cost ranges from $235 billion to $310 billion will have a big impact on Japan's economy and industrial performance. Persistent deflation, reliance on exports to drive growth, and an ageing/shrinking population are examples of long-term challenges that Japan's economy may face.
COMMAND ECONOMY
An economy where supply and price are regulated by the government rather than market forces.
CUBA- The government
continues to balance the need for loosening its socialist economic system
against a desire for firm political control. The government in April 2011 held
the first Cuban Communist Party Congress in almost 13 years, during which
leaders approved a plan for wide-ranging economic changes. President Raul
CASTRO said such changes were needed to update the economic model to ensure the
survival of socialism. The government has expanded opportunities for self-employment
and has introduced limited reforms, some initially implemented in the 1990s, to
increase enterprise efficiency and alleviate serious shortages of food,
consumer goods, services, and housing. The average Cuban's standard of living
remains at a lower level than before the downturn of the 1990s, which was
caused by the loss of Soviet aid and domestic inefficiencies. Since late 2000,
Venezuela has been providing oil on preferential terms, and it currently
supplies over 100,000 barrels per day of petroleum products. Cuba has been
paying for the oil, in part, with the services of Cuban personnel in Venezuela
including some 30,000 medical professionals.