What are comparative economic systems?

Comparative economic systems is a study area in economics that focuses on the analysis of economic systems by comparing other types of economies. This comparison can be used to explore economic systems of real countries or can be used to compare the principles of different economic theories. It is assumed that the analysis of the economy through comparison is useful because no system is inherently perfect; By examining what benefits that every theory or economy represents can help economists to produce and improve new theories that help improve future economic practice and thinking.

During human history, various economic systems have increased and fallen with the times. Feudalism has ruled for centuries and relied on the work of a large class of peasants or slaves to support the activities of noble and royal minorities. With the adoption of new forms of the government came the popularity of theories such as capitalism and socialism that fought for the superiority until the end of the 20th century. In 21st. century, most economies show a form of mixed or mixed economies using some principles of powerful capitalist and socialist ideals, but also includes other features that do not easily fit into any category. The study of comparative economic systems focuses on the similarity and differences of all these systems with regard to the improvement of economic thinking.

It is not uncommon for students to learn the basics of the economy by studying comparative economic systems. Especially in regions with the aim of pluralism, understanding can the advantages and disadvantages of multiple systems to help students develop their own individual concepts and theory of the economy. Socialism, which has developed partly as a reaction to the disadvantages of capitalism, is often taught by comparison and contrast to traditional capitalism.

Study of comparative economic systems can also be important for understanding the behavior of different cultures andof a company. Learning about past economic traditions and developments into modern forms of economics can help throw light into national, history and potential future growth. The study of modern economic systems as a product of their history is sometimes known as temporary comparative economic systems.

Some economic experts suggest that the study of comparative economic systems is most useful when they approach them without a privileged reference framework. This means that students and teachers cannot assume the automatic superiority of one form of economy, such as in their own country, above all others. Objectivity in the analysis can help emphasize the real advantages and disadvantages of each type of economy; While subjective analysis can only serve for the reasons of the belief that already exist.