Question

The three models of capitalism are the European model, the Asian model and the _________ model.

The Chinese economic reforms begun by Mao’s successor, _________ permitted a form of private ownership.

Among the 3 models of capitalism, which one uses equity finance the most in terms of market capitalization as percent of GDP?

Answer 1

1) Anglo Saxon model

( Three models of capitalism are Anglo Saxon model, European model, and Asian model. Anglo Saxon model has its historical origins in Great Britain and is patterned after the classical liberal ideas of Adam Smith.)

2) Deng Xiaoping

( Deng created a number of special economic zones free from unnecessary regulations which becames engines of national economic growth. Under his rule, an amendment was made to article 13 of Chinese constitution which permitted a form of private ownership.)

3) Anglo- Saxon model.

( Anglo Saxon model is based on a system that places the emphasize on equity finance for business. Capital markets therefore tend to be large and are regulated in a manner favourable to trading in equities.)