Sample Solution

The similarities and differences between the Australian and Chinese economies provide an interesting comparison of economic systems throughout the world. They both differ and coincide with each other’s economic growth, environmental sustainability and the role of each of their governments. Since the late 1970’s, china has begun to move from a closed, centrally planned system to a more market-orientated one that plays a major global role, proven by becoming the world’s largest global exporter in 2010. Australia on the other hand, also has an economy that has witnessed many high and low points over the last few decades. Australia has an incredibly prosperous mixed market economy, which defines as an economic system blending elements of market economies with elements of planned economics, free markets with state interventionism, or private enterprise with public enterprise. Its free market is among the first five developed countries of the world, with the four main components being trade, manufacturing, and services and financing. A free market defines as a system in which the prices for goods and services are determined by the open market and by consumers. China on the other hand is governed or ruled by a socialist market economy where the government allows limited free enterprise while still continuing to maintain full control over its resources. Although China is ruled by this system, it has become incredibly successful for trade to and from china. Therefore overall, Australia and China’s differing market systems do and will result in both successful and varying levels of growth and use of resources, the role of government in health-care and education.

China’s mainly socialist market economy has sustained an incredibly high rate of average annual growth in real GDP of 10.1% between 1998 and 2008 and peaked at 14.2% i