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Market Economy Intervention

Different states are based on different historical backgrounds, political, economic, and socio-cultural activities. These make states different in their setup and involvement in interstates or international activities. Further, the composition of states and public participation gives a state different face from the others (Hayward). Therefore, this will analyze the reasons that make some states to intervene in market economy as compared to others with respect to a comparison between two states.

In the market economy, states have shown different levels of intervention. This has been accelerated due to various and diverse reasons. For instance, public outcry is among the reasons that force their government to intervene over maters that affect their living standards. Political demands or the state capacity also affects its level of intervention in external affairs. Some political setup of some states does not allow them to participate in external businesses such as market economy intervention. Moreover, some states have their history based on diverse ideologies as well as wars. As such, these limit their level of market interaction with other states. Additionally, there are states with complex economics and limited role of international financial institutions (Hayward). Therefore, these reasons are the major causes of the evident differences in market economy intervention.

For instance, the United States is well known for its full intervention over market economy. Possibly, this is facilitated by its past economy being based on capitalism ideology. However, states like China are usually reluctant on intervention because its economy was based on communism ideology. These ideological differences play a vital role in the participation on international affairs.

In conclusion, there are couples of reasons that play part in the market economy intervention by governments. Some of these reasons have been outlined and a factual example provided for China and the United States. The difference in the market intervention can also be accelerated by the market forces hindering governments from interfering with market activities.

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