ChAPTER 18.3: TRANSITION TO A MARKET ECONOMY

• Economie
• Tertiary Education

Brainstorm

What is an economic system?

Economic System

An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country.

Chapter 18

Section 3: The Transition to a Market Economy

Objectives

Identify the key terms

Examine the differences between the economic transition of the former Soviet Union bloc and China

Evaluate the economic expectation

​Nations with little industry and relatively low GDP are said to be 1 , while nations with a market economy and higher standard of living are known as 2 . Economists measure the level of a

nation’s development through such statistics as   3 , which allows for easy comparison with other countries because it 

relation to its population.

When nations set a course for development, they often seek loans from other nations. Some heavily indebted nations have gone into 4 on their loans, being unable to pay them back. In those cases, nations can negotiate a 5 plan to extend the payback and/or lower the payback rate.

Some economies are moving from central planning to an open market. These nations face a number of challenges. For   example, there are questions about how to carry out 6 , the transfer of public property into individually owned property. There are also questions about the pace of change. 7 involved suddenly removing

governmental restrictions on the economy.​

governmental restrictions on the economy.​

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Answers

1.less developed countries

2. developed nations

3. per capita GDP

4. default

5. debt restructuring

6. privatization

7. shock therapy​

Task 2:

What are three key differences between the economic transitions of the former Soviet bloc and China?​

Answer here

1. This survey was conducted a few months before these countries joined the European Union. 

When they joined the European Union, how did the economies of Poland, the Czech
Republic, and Hungary compare with those of other EU members? 

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Write two economic problems that Poland shared with Russia

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What are the questions that arise in your mind?
What are the important points of this topic?