Types of Economic Systems

Capitalist  In a capitalist or free-market country, people can own their own businesses and property. People can also buy services for private use, such as healthcare.  But most capitalist governments also provide their own education, health and welfare services.

Communist  In a communist country, the government owns property such as businesses and farms.  It provides its people's healthcare, education and welfare.

Socialist  Much like communist except some businesses are owned by individuals.  Examples: restaurants, heating and air, large superstores, etc. are owned by individuals.  Businesses such as healthcare, welfare, etc are run by the government.

United Kingdom  Industrialization helped the U.K. grow.  In the twentieth century other nations industrialized.  Two world wars weakened the economy of the United Kingdom.  Its colonial empire began to collapse as African and Asian colonies gained their independence from the United Kingdom.

United Kingdom  Today, the United Kingdom has fallen behind the world’s strongest economies—those of the United States, Japan, and Germany.  The United Kingdom ranks fifth among the world’s top 40 industrial powers.

United Kingdom  Mixed Economy:  combines a few state-owned businesses with private enterprise.  Shortly after World War II ended in 1945, the Labour Party was voted into office.  The new government quickly claimed ownership of the nation’s key industries— railways, steel plants, and health care.

Ireland  Ireland does not have resources for much large-scale agriculture or industry.  Production of field crops is limited by heavy rains that keep the soil too wet to grow much except potatoes.  few mineral resources.

Ireland  Cattle, sheep, and horses thrive on the pasturelands.  Seafood comes from ocean waters surrounding the island.  Families or small businesses usually operate cattle farms and fishing boats.

Improving Ireland’s Economy  Market improved after Ireland joined the European Union.  Ireland recruited foreign industries with offers of low taxes.  Companies responded by moving hundreds of factories to Ireland.  They import raw materials, turn the materials into finished products, and sell them in Europe.

Improving Ireland’s economy  Now Ireland is also a world leader in computer software.  Thousands of new jobs have been created in the high- tech fields.  Ireland’s population is growing again.

Population Map

Nordic Region  In Nordic countries, service industries make up about 70 percent of each country’s economy.  Education, health care, government administration, transportation, banking, or trade, tourism.

Finland  Timber is Finland’s most abundant raw material. It is made into furniture, paper, and plywood.  Skilled labor and business management have built profitable industries in a nation with few resources.  Farm machinery, electric motors, generators, and machinery for paper and lumber industries.  Finland’s shipbuilders make high-quality icebreakers and ferries.  The most well known Finnish company is Nokia, the world’s largest manufacturer of mobile phones.

Norway  Norwegian oil pumped from the North Sea is the source of many petroleum products.  Norway manufactures fuel oil, rubber, and plastics.  The country also produces clothing, electrical machinery, and furniture.  Norway is one of the world’s largest processors of aluminum, a metal that requires large amounts of electricity to manufacture.

Norway  The Norwegian fishing industry is large and operates in all oceans.  Another major ocean-based industry is the Norwegian merchant marine.  Ships from this fleet carry freight from other nations throughout the world.

Iceland  Iceland’s most important industry is fish processing.  The country also produces aluminum, cement, clothing, and electrical equipment.  Iceland’s underground supply of geothermal energy may soon encourage greater industrial development.