Vietnam, from a command economy has shifted to a market economy. Command economy is an economic system by government appointed business, shall determine the quantity and price. These are the period of production does not meet production targets or fail to meet production demands. When demand increases, along with the complexity of new products, government decision-making increasingly more difficult, require more difficult decisions that lead to wrong conduct to regulate the economy.
This phenomenon does not occur in a market economy, as in market economies do not exist for the decision of the government, individuals and companies can produce and trade goods which they can manufacture or business is not dependent on government as long as they believe that they will profit. Thus, when moving from command economy to market economy enterprises Vietnam will have many more business opportunities, integration capabilities and higher competitive.
To increase productivity, workers and companies must develop new products to market, or production of goods and services efficiently than competitors with lower costs or better quality more. International trade can contribute an important part in increasing productivity and promoting prosperity. When nations exchange goods and services they produce cost effective, people in all countries involved in this process will benefit more.
The most common argument to justify the policies have limited free trade - often in the form of taxation on imports or restrictions on the import volume - that protecting jobs in some industries is good for a country as workers and business owners in these industries will have higher income and higher profits, and spending most of that money in the country. This argument is partially correct but that's just part of the story. Protection of some manufacturers and workers also means that prices for goods and services they produce will be higher. This is detrimental to consumers and other producers are using such products as factors of production inputs and for the company when sales dropped because some of their customers must pay more for products to be protected.
Vietnam, from a command economy has shifted to a market economy. Command economy is an economic system by government appointed business, shall determine the quantity and price. These are the period of production does not meet production targets or fail to meet production demands. When demand increases, along with the complexity of new products, government decision-making increasingly more difficult, require more difficult decisions that lead to wrong conduct to regulate the economy.This phenomenon does not occur in a market economy, as in market economies do not exist for the decision of the government, individuals and companies can produce and trade goods which they can manufacture or business is not dependent on government as long as they believe that they will profit. Thus, when moving from command economy to market economy enterprises Vietnam will have many more business opportunities, integration capabilities and higher competitive.To increase productivity, workers and companies must develop new products to market, or production of goods and services efficiently than competitors with lower costs or better quality more. International trade can contribute an important part in increasing productivity and promoting prosperity. When nations exchange goods and services they produce cost effective, people in all countries involved in this process will benefit more.The most common argument to justify the policies have limited free trade - often in the form of taxation on imports or restrictions on the import volume - that protecting jobs in some industries is good for a country as workers and business owners in these industries will have higher income and higher profits, and spending most of that money in the country. This argument is partially correct but that's just part of the story. Protection of some manufacturers and workers also means that prices for goods and services they produce will be higher. This is detrimental to consumers and other producers are using such products as factors of production inputs and for the company when sales dropped because some of their customers must pay more for products to be protected.
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