Economic transition refers to the process by which a country shifts from one economic system to another, often moving from a planned economy to a market economy. This change can involve reforms in policies, regulations, and institutions to encourage private enterprise, investment, and trade. During an economic transition, a country may experience challenges such as unemployment, inflation, and social inequality. However, successful transitions can lead to increased economic growth, improved living standards, and greater integration into the global economy. Examples of countries that have undergone economic transitions include China and Eastern European nations after the fall of the Soviet Union.