economics in south and east asia
DESCRIPTION
ELEMENTS Compare how traditional, command, and market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. Explain how most countries have a mixed economy located on a continuum between pure market and pure command. Compare and contrast the economic systems in China, India and Japan Explain how specialization encourages trade between countries. Compare and contrast different types of trade barriers, such as tariffs, quotas, and embargos Explain why international trade requires a system for exchanging currencies between nations. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP). Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP). Describe the role of natural resources in a country’s economy Describe the role of entrepreneurshipTRANSCRIPT
ECONOMICS IN SOUTH AND EAST ASIA
SS7E8The student will analyze different economic systems. SS7E9 The
student will explain how voluntary trade benefits buyers and
sellers in South and East Asia SS7E10 The student will describe the
factors that cause economic growth and examine their presence or
absence in India, China and Japan ECONOMICS IN SOUTH AND EAST ASIA
ELEMENTS Compare how traditional, command, and market economies
answer the economic questions of (1) what to produce, (2) how to
produce, and (3) for whom to produce. Explain how most countries
have a mixed economy located on a continuum between pure market and
pure command. Compare and contrast the economic systems in China,
India and Japan Explain how specialization encourages trade between
countries. Compare and contrast different types of trade barriers,
such as tariffs, quotas, and embargos Explain why international
trade requires a system for exchanging currencies between nations.
Explain the relationship between investment in human capital
(education and training) and gross domestic product (GDP). Explain
the relationship between investment in capital (factories,
machinery, and technology) and gross domestic product (GDP).
Describe the role of natural resources in a countrys economy
Describe the role of entrepreneurship ESSENTIAL QUESTIONS How do
the traditional, command, and market economies of South and East
Asian countries answer the economic questions of (1) what to
produce, (2) how to produce, and (3) for whom to produce? Where are
the economic systems of South and East Asia located on a continuum
between pure market and pure command? What are the similarities and
differences between the economic systems in India, China and Japan?
How does specialization encourage trade between countries in South
and East Asia? How are tariffs, quotas, and embargos barriers to
trade in South and East Asia? Why does international trade require
a system for exchanging currencies between nations? What is the
relationship between investment in human capital (education and
training) and gross domestic product (GDP)? What is the
relationship between investment in capital (factories, machinery,
and technology) and gross domestic product (GDP)? How do natural
resources affect a countries economy? What is the role of
entrepreneurship in South and East Asia? What is an Economic
System?
Every society, whether a country, state, city, town, has an
economic system An economic system is how a society organizes the
production, consumption and distribution of goods and services
Systems of Economy There are three main types of economic
systems
Traditional Found mostly in societies that are based on farming
People produce enough goods to survive Either by farming, gathering
or hunting Make their own clothes and tools Anything extra is
usually traded Command Government controls what is produced, how
things are produced Government has all the resources and dictates
what is to be made and who gets the product Decisions made on
wealth, class statusor by position in a waiting line Market Based
on what the consumers of the country want to buy and sell Supply
and demand determines what is produced and how it is produced
People may own their own businesses Who gets a product determines
how much they can afford to buy it Countries with Different
Systems
NORTH KOREA PAKISTAN UNITED STATES OF AMERICA The Idea of Mixed
Economy
Most countries in the world have a mixed economy Most are in
between command and market economies Because of growing
populations, citizens acquiring more rights, the addition of
resources and government changes, countries have moved towards
mixed economies Examples of countries with mixed economies United
States England France South Africa Economic System of India
India has a mixed market economy today after previously having a
command system.India.India has a rare mixture of market, command
and traditional principles.Many citizens still use agriculture as
their means of living, but India has a high level of technology,
including communication services, electronics, outsourcing of its
workers, and a booming movie industry.Even with these changes,
India is still one of the poorest countries in Asia. Economic
System of China
China has a mixed market economy that adds ideals of socialism,
which still allows some government control.China has introduced
many reforms, or societal changes, over the years which has
increased their economy.The Chinese still use agriculture to make
their economy grow, but they do allow some citizens to have small
businesses.China also makes money from industries such as iron,
steel and manufacturing.The growth of China can also be contributed
to many people moving and seeking work in its large cities like
Shanghai and Hong Kong. Economic System of Japan
Japan has a mixed market economy and has one of the strongest
overall economies in the world.Japans number one moneymaker is
manufacturing, specifically cars, electronics, and ships.Japan
imports their raw materials to make their products due to little
land and resources.The government controls things like banking and
trading and they set tariffs on international imports. Economic
System of North Korea
North Korea has a command economy due to its Communist
government.The government has control of resources and what is
produced in the country.People who farm work on land called
cooperatives where up to 300 families can share the land.There is a
huge lack of food and the government uses imports and aid from
countries to help. Specialization The act of concentrating on a
limited number of goods and activities to trade Helps people and
companies use resources more efficiently Allows for increased
production and consumption of goods and services Types of Trade
Barriers
Tariffs Taxes on imported goods Quotas Restrictions on the amount
of a good that can be imported into a country Embargos Forbids or
disallows trade with other countries Currency Exchange in South and
East Asia
Currency is the type of money used to exchange or purchase goods
The system of exchanging money internationally is called foreign
exchange Currency in South and East Asia Japan Yen Indonesia Rupiah
India - Rupee China - Yuan Capital and Human Capital vs. GDP
The knowledge and skills that allow for people to make goods and
services for society Factors Training and education Capital Things
that are used to make other goods Factories, technology and
machines Gross Domestic Product (GDP) The total market value of the
goods and services produced by a countrys economy during a specific
period of time Used by economists to determine how healthy or
unhealthy a country is Human Capital, Capital and GDP
The relationship between human capital and GDP is if a country has
good source of human capital, the GDP tends to be higher The
relationship between capital and GDP is the more capital in a
country, the healthier the country is in the long term The Impact
of Natural Resources on South and East Asia
Natural resources provide the region with ways to create goods and
products. Some of the major natural resources of South and East
Asia Coal Petroleum Rice Wheat Lumber Natural Gas Entrepreneurship
An entrepreneur is someone who has an idea for a good or service
and takes risks to produce the good or service Entrepreneurs know
of the risks before the product is produced Entrepreneurs help the
economy to grow based on borrowing funds, use capital and human
capital and natural resources More entrepreneurship would be found
in East Asia, where the economy is better, than in South Asia,
where many people are poor