The document outlines the key topics and structure of an economics lesson, including identifying different economic systems, understanding the advantages and disadvantages of market, planned, and mixed economies, and analyzing reasons for and challenges of international trade. The lesson will assess benefits of market and mixed economies, determine pros and cons of international business, and analyze difficulties of entering foreign markets. It also provides explanatory information on various economic models and international trade issues.

1. WHAT WILL WE LEARN TODAY?
 Identify various economic systems
 We will gain understanding of the
advantages and disadvantages of
various systems
 To be able to analyse reasons to trade
internationally
 Also try to work out what the
various fruit represents?????

2. CLASS STRUCTURE FOR THE LESSON
1 – Market
economies
2 – International
trade
1 - Assess the
benefits of market
and mixed
market economies
2 – Determine the
pros and cons of
conducting business
internationally
3 – Analyse the
factors that may
make entering an
international
market difficult
Plenary

3. MIXED MARKET AND MARKET ECONOMIES

4. WHAT IS AN ECONOMIC SYSTEM?
 Market economic system
 Planned economic system
 Mixed economic system

5. MARKET ECONOMY
 Decisions regarding investment, production
and distribution are based on supply and
demand factors.
 Market economies can range from hypothetical
free market to regulated markets and
interventionist variants.
 Most existing market economies include a
degree of economic planning or government
direction and are classified as mixed
economies.
 In the real world, market economies do not
exist in pure form

6. ADVANTAGES OF A FREE MARKET ECONOMY
 A variety of goods and services available
 Businesses respond quickly
 Businesses will innovate
 There is no taxation

7. DISADVANTAGES OF A FREE MARKET ECONOMY
 Businesses will only produce goods and services
that earn a high profit
 Businesses will only sell products to consumers
who can afford to pay most for them
 Resources will only be employed if it is profitable
to do so (no NHS etc...)
 Harmful goods may be produced if it is profitable
to do so
 Some producers and consumers may ignore the
harmful effects of their decisions on others and
the environment
 Some firms may dominate the market supply of a
particular product (monopolies)

8. PLANNED ECONOMY
 Decisions regarding production and investment
are planned by central government and is
normally centralised.
 The goal of central planning is to allow
government to take advantage of shared
information and make informed decisions
regarding investment and the allocation of
economic resources.
 The extreme is when
government plan all areas
of the economy and this is
called a controlled system
economy

9. MIXED ECONOMY

10. THE MIXED ECONOMY
Somewhere in-between the 2 extremes
The government can:
 Provide services such as education
 Provide services such as street lighting
 Employ people who would otherwise be
unemployed
 Provide financial help to important businesses
 Introduce laws to protect the consumer and the
environment
 Regulate or break-up monopolies

11. PROBLEMS CREATED BY GOVERNMENT POLICY
 Disposable income is reduced due to taxation
 Increased costs to business of regulation
 Public sector organisations are often inefficient

12. MY WEEK
Don’t worry Matt
I’ll sort the taxes
Oh Pat you are my
hero, I wish I was
more like you

13. THE TRUTH

14. INTERNATIONAL TRADE

15. CONSUMER CHOICE AND OPPORTUNITIES FOR GROWTH
 Consumer choice
 Increased competition
 Business growth
 Free trade (workforces and technologies
anywhere in the world)

16. ADVANTAGES OF INTERNATIONAL TRADE
 Specialisation
 Consumers benefit from imported goods
otherwise not available to them
 Competition
 Economies of scale
 Best workforces

17. DISADVANTAGES OF INTERNATIONAL TRADE
 Competition
 Movement to less well
developed economies
 Global demand may be dominated
by certain developed/developing economies
 Social cost of transport pollution
 Loss of culture, uniqueness

18. BARRIERS TO FREE TRADE
 Tariffs
 Quotas
 Embargos

19. EMBARGOS
Sometimes called Boycotting i.e. To
boycott another country

20. ARGUMENTS FOR TRADE BARRIERS
 They help protect small businesses and new
industries
 They prevent dumping
 They prevent over-specialisation by protecting a
range of different industries

21. ARGUMENTS AGAINST TRADE BARRIERS
 They restrict consumer choice and opportunities
for new businesses and business growth
 They protect inefficient domestic businesses with
higher costs and often lower-quality products
 Other countries will retaliate by introducing
their own trade barriers

22. PROBLEMS ENTERING NEW MARKETS ABROAD

23. ENTERING OVERSEAS MARKETS
 There may be language barriers
 Different cultures, customs and tastes will need
to be understood
 The business must comply with different laws,
regulations and taxes
 The business must manage exchange rate risks
 There are increased risks of non-payment

24. OVERCOMING PROBLEMS ENTERING OVERSEAS MARKETS
 A business can use
local contacts
 A business can set up
assembly or sales only
business units
overseas
 It can enter into a
joint venture with an
overseas business
 A business can merge
with or takeover an
existing business

25. SO WHAT WAS THE FRUIT?
 It symbolised market structures
 Free market, all apples grow ungoverned
and the biggest and quickest fall first and
succeed in planting their seed
 Planned economy – government tell you
what to grown and where it goes
 Mixed economy – Somewhere
in-between, plus its a cool image
 World trade and choice

26. MIXED MARKET AND MARKET ECONOMIES

27. WHAT DID WILL WE LEARN TODAY?
 Identify various economic systems
 Understanding of the advantages and
disadvantages of various systems
 Reasons to trade internationally
 Some gibberish about fruit

28. BUSINESS ACTIVITY
1 – Market economies
2 – International trade
1 - Assess the benefits of
market and mixed
economies
2 – Determine the pros and
cons of conducting business
internationally
3 – Analyse the factors
that will make entering
international market s
difficult
Plenary