The Economies of Asia
Traditional Economy• Needs are fulfilled in the same way as their  ancestors.
Command EconomyThe government determines what will be produced,how it will be produced and who it will be produced forin s...
Market Economy• Individual businesses  make their own decisions  about what to produce  and how to produce it  without gov...
Mixed Economies• Communist –The government  produces all of the consumers’  needs and wants.• Socialist –The government  p...
Economic Systems Pure                    PureMarket                 Command
ic     om  o n ms                       IsraelEc te                   68% S ys               Saudi             Iran   Arab...
ic     om  o n ms               South AfricaEc te              64% S ys        Nigeria              55%  Pure             ...
ic     om  o n ms                            JapanEc te                        73% S ys         China                    I...
India’s Economy                     Mixed Economy• It is a mixture of the traditional  and the modern.• In villages, farme...
India’s Economy, Cont’d• Its economy is large enough to  rank among the world’s top 10  industrial countries.• Some Indian...
China’s Economy•   When the Chinese    Communists took over in 1949,    they set up a nearly pure    command economy.•   T...
China’s Economy, Cont’d• In the late 1970s, the  gov’t introduced elements  of free enterprise.• Now, farmers can grow  an...
Japan’s Economy• Japan has few natural  resources, so it must  import many raw  materials to run its  industries.• The cou...
Japan’s Economy, Cont’d• Japan is known for its  high-quality cars and  items like TVs, cameras,  and CD players.• Their e...
North Korea’s Economy•   This is one of the worlds most    centrally directed and least    open economies.•   The central ...
North Korea’s Economy, Cont’d• North Korea doesn’t  produce enough food to  feed its people and  historically imported  ne...
Gross Domestic Product (GDP)Market value of all final goods and services produced in a country in a year (Final goods and ...
Factors that influence GDP (make it go up and down):1) Investment in physical and human capital –    •   New Jobs / New Fa...
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Economies of Asia review

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  • 7 th Grade- This information is meant to be used in conjunction with the 6 th and 7 th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
  • 7 th Grade- This information is meant to be used in conjunction with the 6 th and 7 th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
  • 7 th Grade- This information is meant to be used in conjunction with the 6 th and 7 th grade Teacher Notes. For additional resources, go to GeorgiaStandards.org. (Note: This is not an expectation for students to memorize numbers, but to understand that factors that influence specific countries to move more towards a command or market economy). The numbering system is based on The Heritage Foundation’s Economic Freedom Index 2009 The Heritage Foundation is a conservative organization that has partnered with the Wall Street Journal for over a decade to evaluate each country based on a set of 10 criteria to determine economic freedom. Update information using resources listed in the Teacher Notes.
  • Economies of Asia review

    1. 1. The Economies of Asia
    2. 2. Traditional Economy• Needs are fulfilled in the same way as their ancestors.
    3. 3. Command EconomyThe government determines what will be produced,how it will be produced and who it will be produced forin society.
    4. 4. Market Economy• Individual businesses make their own decisions about what to produce and how to produce it without government regulations.
    5. 5. Mixed Economies• Communist –The government produces all of the consumers’ needs and wants.• Socialist –The government produces the consumers’ needs and private businesses produce the wants.• Capitalist – Private businesses produce most basic needs and wants with some government regulations.
    6. 6. Economic Systems Pure PureMarket Command
    7. 7. ic om o n ms IsraelEc te 68% S ys Saudi Iran Arabia 45% 64% Pure PureCommand Market
    8. 8. ic om o n ms South AfricaEc te 64% S ys Nigeria 55% Pure PureCommand Market
    9. 9. ic om o n ms JapanEc te 73% S ys China IndiaNorth Korea 54% 53% 2% Pure PureCommand Market
    10. 10. India’s Economy Mixed Economy• It is a mixture of the traditional and the modern.• In villages, farmers still work in the fields.• There are also modern factories and high-tech service industries.• Almost 60% of India’s workforce are farmers who grow barely enough to feed their families.• India’s leading crops are rice, wheat, cotton, and tea.• India is still considered a developing country.
    11. 11. India’s Economy, Cont’d• Its economy is large enough to rank among the world’s top 10 industrial countries.• Some Indians are very rich, but most are still poor.• Booming electronics industry, producing computers, software, televisions, CD players, VCR’s, launched several communications satellites systems and leads the region in a number of related fields.• Bollywood films are as popular in Southern and Eastern Asia as are films in U.S.
    12. 12. China’s Economy• When the Chinese Communists took over in 1949, they set up a nearly pure command economy.• The Communists took over an economy that was almost solely based on farming.• Today, China produces everything from satellites to rockets to toys.
    13. 13. China’s Economy, Cont’d• In the late 1970s, the gov’t introduced elements of free enterprise.• Now, farmers can grow and market their own crops on part of their rented land.• Millions of Chinese have started their own small businesses.
    14. 14. Japan’s Economy• Japan has few natural resources, so it must import many raw materials to run its industries.• The country produces about 1/3 of its energy through nuclear power.• Japan has the world’s largest fishing industry.• Fish is a major part of the Japanese diet.
    15. 15. Japan’s Economy, Cont’d• Japan is known for its high-quality cars and items like TVs, cameras, and CD players.• Their economic success is due partly b/c of a high literacy rate and partly b/c of the peoples’ strong work ethic.• Japan’s market economy depends on trade, especially with countries in the Pacific Rim.
    16. 16. North Korea’s Economy• This is one of the worlds most centrally directed and least open economies.• The central government plans the economy, controls what’s produced, owns all land and housing, and controls access to jobs.• Only 14% of North Korea’s land can be farmed.• It’s farmed by cooperatives- groups of farmers who work the land together.• Some people grow food for themselves in small gardens.
    17. 17. North Korea’s Economy, Cont’d• North Korea doesn’t produce enough food to feed its people and historically imported needed food from the Soviet Union. When it • North Korea is rich in collapsed it lost its main mineral resources. source of food and has • They make machinery, faced famine at times. iron, and steel, but their• Poor harvests in the mid factories use outdated 90s made things worse, technology. famine ensued, and • The government has thousands starved to invested in nuclear power death. plants.
    18. 18. Gross Domestic Product (GDP)Market value of all final goods and services produced in a country in a year (Final goods and services have been purchased for final use. They are not for resale or further manufacture) C + I + N + G Consumption Investment Net Exports GovernmentSpending by households Spending on business Net exports are calculated (x-m) Spending on all levels of where x is exports and m is imports.on goods and services, machinery, factories, government on goods Spending by people notincluding spending on equipment, tools and the and services, including living in the US on goodssuch things as cars, food construction of new spending on the military, and services made in theand visits to the dentist. buildings. schools and highways. USThis makes up 2/3 of theGDP spending. Minus Spending by people in the US on foreign goods and services. GM cars, Coca Cola minus Call center serviceThe sum of CING is GDP
    19. 19. Factors that influence GDP (make it go up and down):1) Investment in physical and human capital – • New Jobs / New Factories2) Incentives to save, invest and increase productivity • Government / Employer3) Low Inflation • Economic condition in which prices of goods and services increase • Gas Prices, Grocery prices go up!4) Political Stability5) Economic Freedom6) Free Trade

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