Transition economies are countries that are shifting from a centrally planned economy to a market-oriented economy. This process often involves significant changes in economic policies, privatization of state-owned enterprises, and the establishment of legal frameworks to support private business. Examples of transition economies include Poland, Hungary, and Russia. These economies typically face challenges such as inflation, unemployment, and the need for foreign investment. The transition can lead to increased economic growth and improved living standards, but it may also result in social inequality and economic instability during the adjustment period.