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Group Assignment ECO162

Brunei is a country located on the north coast of Borneo in Southeast Asia. It has a mixed economic system that combines private enterprise with government regulation and economic planning. Most countries, including Brunei, practice a mixed economic model. Brunei's economy relies heavily on exports of oil and gas, the government provides extensive social services and subsidies, and it aims to balance foreign and domestic business with traditional village culture.

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103 views4 pages

Group Assignment ECO162

Brunei is a country located on the north coast of Borneo in Southeast Asia. It has a mixed economic system that combines private enterprise with government regulation and economic planning. Most countries, including Brunei, practice a mixed economic model. Brunei's economy relies heavily on exports of oil and gas, the government provides extensive social services and subsidies, and it aims to balance foreign and domestic business with traditional village culture.

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Noor Syazani
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DEFINITION

Brunei is a country located on the north coast of the island of Borneo in Southeast
Asia. Apart from its coastline with the South China Sea, the country is completely
surrounded by the Malaysian state of Sarawak. Brunei has a mixed economic system
which includes a variety of private freedom, combined with centralized economic
planning and government regulation. Mixed economy system is an economic system
which combines both capitalism and socialism system to solve basic economics
problems. A mixed economy is an economy in which both the public and private
sectors play a role. Most countries including Brunei practise a mixed economy.
CHARACTERISTICS OF A MIXED ECONOMY

I. Public and private ownership of resources


-The private and public sectors play important roles in a mixed economy
-Private enterprises conduct business freely and the government encourages the
private sector by providing them with infrastructure and facilities.

II. Price mechanism and economic plans in making economic decisions


-The price mechanism is used to price both goods and services
-Most of the mixed economies accept economic planning as an instrument of
economic growth and social justice

III. Government helps to control income disparity


-The government controls income disparity through income taxes and welfare
payments
-The government has direct control over profits, wages and rents
-The government help to narrow the income gap between the rich and the poor

IV. Government intervention in the economy


-The government will not intervene in the economy except for particular industries
-In a mixed economy, the government uses law-making for unsafe goods such as
military items

V. Co-operation between the government, public and business sectors


-There is significant co-operation between the public and private sectors leading to
economic development

VI. Government control of monopolies


-Monopolists are single players in an industry. They have complete, sole control over
the price of goods and services
-The government will regulate the power of monopolist in order to avoid customers
being exploited by monopolists
Characteristics of Brunei

- Combination of foreign and domestic entrepeneurship, government rule and welfare


measures, and village traditions

- Brunei is almost totally supported by exports of crude oil and natural gas, with
income from the petroleum sector

- The government provides for all medical services, subsidizes food and housing and
free education through the university level.

-Brunei is the third-largest oil manufacturer in Southeast Asia, averaging about


180,000 barrels per day
REFERENCES
1. Deviga Vengedasalam & Karunagaran Madhavan (2013). Principles of Economics
(3rd Edition).Selangor Darul Ehsan, Malaysia. Oxford Fajar.
2. “Economy of Brunei”, 13 November 2019, Brunei - Wikipedia,
https://en.wikipedia.org/wiki/Brunei
3. Michigan State University, 5 November 2010, Brunei - Introduction,
https://globaledge.msu.edu/countries/brunei
4. MyFindB Group, 4 May 2018, My Data, My Bureau, https://myfinb.com/brunei/

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