Economic System. The manner in which the society produces and distributes its goods and services. The Japanese economic system is in some ways an extension of the family and is group-oriented. Until recently, the world was divided into capitalistic or socialistic economic blocks, and economies were labeled First World (advanced free enterprise systems); Second World (socialist or communistic societies based on centralized planning and control); and Third World (developing nations moving from the Political System. The dominant means of governance for maintaining order and exercising power or authority. Some cultures are tribal where chiefs rule, others have a ruling royal family with an operating king, while some prefer democracy.