The Market system and Command system can be found in different parts of the world. The Market system (Capitalism) is a free market system where investments, production and distribution are based on supply and demand and is similar to those found in the United States, Canada, South Korea and the United Kingdom. It also can be found in certain cities such as Hong Kong. The Command system (Socialism/Communism) is an economy in which production, investments, prices, and incomes are determined by a government and is similar to the systems found in China, Cuba, and North Korea.
There are advantages and disadvantages to both the Command Economies and Market Economies. In a Command Economy, it is possible to adjust the production rate of goods so that the supply meets the exact demands of the population. The chances of shortages are greatly reduced and shortages that do occur are kept short. Using this system increases efficiency by reducing shortages and surpluses. Everyone in a Command Economy can be employed. Command Economies can quickly and easily respond to disasters or other emergencies that occur. Facilities not affected by the disaster can continue to produce goods to prevent shortages, plus certain goods that are needed can be more readily produced to help those affected by disasters (Occupy Theory, 2014). The struggle with Command system economies is that there is a small group of people attempting to manage a huge mass of diverse people with different needs. Which for obvious reasons can't be managed as perfectly. So the command system's advantage can also become a problem. Command systems also create misplaced incentives. The Command system allows the government to control everything that is produced and distributed. So the population does not receive the rewards they desire. All the rewards are chosen for them by the government. So there is no incentive for anyone to better themselves (Metcalf, 2013; Chron, 2013).
