In a free enterprise, companies and households act in self-interest to see however resources get allotted, what merchandise get created and World Health Organization buys the products. this is often opposite to however a command economy works, wherever the central government gets to stay the profits.
There is no government intervention in an exceedingly pure free enterprise (“laissez-faire“). However, no actual free enterprise exists within the world. for instance, whereas America may be a capitalist nation, our government still regulates (or tries to control) truthful trade, government programs, honest business, monopolies, etc.
In this form of economy, there’s a separation of the govt. and also the market. This separation prevents the govt. from turning into too powerful and keeps their interests aligned thereupon of the markets.
Historically, Hong Kong is taken into account AN example of a free-market society.