What is Mixed Economy | Types | Capitalist and Socialist Economy

 Mixed Economy Mixed economy is an economy which combines the element  of both the capitalist and socialist economies. It attempts to combine the best features of both capitalism and socialism while excluding the Demerits of Both.   Two types of Mixed Economy      1. Government does not directly undertake Production activity. This exists in most of the developed countries such as the USA, UK, etc.     2. Where Government not only Regulates the Private Sector, But also Participates in the Production activities.     Features of Mixed Economy Co - existence of Public and Private Sectors. Features of both Capitalism and Socialism. Government regulates and controls the Private Sectors. Price mechanism Profit Motive. Capitalist Economy   In Capitalist  form of economic system the means of Production and Distribution are Privately own,  and Production is guided Largely through Operation of markets.    ...
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What is Liberalisation, Privatization, Globalization | Definition and Process

 Liberalization

Freeing economy from Government Controls, Regulations.
  • Private Sector Grow Faster if it is Liberated.
     

Process of Liberalization

  • The end of License Raj.
  • Freedom from Government clearance.
  • Freedom to public sector to access the capital market.
  • corporatisation of Public sector Units.
  • Freedom to corporate to buy back shares.
  • Increase in the environment ceiling of small- scale Enterprice.
  • Liberal tax structures for select sectors.
  • Permission to banks to enter insurance sector.
  • Relaxation in administered price mechanism.
  • Freedom to transfer license and assets.
  • Removal of restrictions to move Products.
  • simplified and rational tax structure
  • Tax exemptions, concessions and holidays especially for new ventures.

Privatization

Privatization Occurs when a government owned Business or Property becomes owned by a Private, non- Government Party.
 

Process of Privatization

  •  Selling Equity
  • Decentralization of Nationalised Equity ( Enterprices )
  • Giving Franchise
  • Royalty linked licensing of technology from Public sector units to Private Units.
  • Privatization of management in Government owned Units.
  • Disinvestment in the Public sector.
  • Opening of core Public sectors to Private Players.
 

Globalization

  Globalization the Process by which diverse economies of the world become integrated through a global network of sharing and exchanging products, technology, International trade, labor, investment, information and economic culture.
 

Process of Globalization

  • International banking and the remarkable progress in the field of information technology has helped the process of economic Globalization.
  • Business organization must operate within the framework laid down by the Government in the Power.
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