1. Diverse Economies of East Asia And its Economic World Impact!

2. TOY RECALLS Mattel issued a recall for about 9 million Chinese- made toys that had lead in them

3. “Tuesday’s recalls were the latest blows to the nation’s toy industry, which relies on China for about 80 percent of toys sold in the United States.” – Associated Press

4. What is a Product Recall? A request to return a product to the manufacturer that may be harmful, dangerous, or have other safety issues Very Costly to companies Can cause businesses to close down, loss of jobs

5. The Consumer Product Safety Commission negotiated details of Mattel’s recalls

6. What is the Consumer Product Safety Commission? a United States federal agency that protects the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products within its authority and oversees industries in the United States.

7. How Does the Word Get Out to the American People? The CPSC uses media to let people know of dangerous products The CPSC uses media to let people know of dangerous products Television Television Radio Radio Internet Internet Newspaper Newspaper

8. YOU DECIDE So, based on what you have learned about these toys, would it bother you to buy toys which were made in China? How about other products? What would happen to the economy of China if no other country would buy their goods?

9. MARKET ECONOMY most businesses are privately owned. most businesses are privately owned. Also called “free-enterprise” Also called “free-enterprise” allows business owners to compete in the market allows business owners to compete in the market little government interference little government interference

10. COMMAND ECONOMY An economy that is controlled by the government An economy that is controlled by the government

11. MIXED ECONOMY government has set up Special Economic Zones (SEZ’s) for businesses and manufacturing areas government has set up Special Economic Zones (SEZ’s) for businesses and manufacturing areas Mostly in democratic nations Mostly in democratic nations

12. CHINA Controlled mostly by the government Controlled mostly by the government *Has recently changed from a centrally planned system to a more market-oriented economy even though China’s leaders want to have a Communist government *Has recently changed from a centrally planned system to a more market-oriented economy even though China’s leaders want to have a Communist government Some zones in China (Hong Kong) allow free market enterprise Some zones in China (Hong Kong) allow free market enterprise

13. JAPAN Government does not control, but oversee and advises all aspects of the economy Government does not control, but oversee and advises all aspects of the economy Industry and a skilled, EDUCATED work force are very important to Japan’s economy Industry and a skilled, EDUCATED work force are very important to Japan’s economy US is Japan’s biggest customer US is Japan’s biggest customer

14. TAIWAN Economic freedom Economic freedom Government has a “hands-off” policy Government has a “hands-off” policy

15. NORTH KOREA Government controls economy Government controls economy People work on cooperatives – hundreds of families share farm work People work on cooperatives – hundreds of families share farm work

16. SOUTH KOREA One of the world’s strongest economies One of the world’s strongest economies Trade with many countries Trade with many countries

17. MONGOLIA Has had a traditional economy (based on herding and agriculture) but it is moving toward a market type of economy Has had a traditional economy (based on herding and agriculture) but it is moving toward a market type of economy

18. Factors of Production Land (natural resources) Land (natural resources) Labor Labor Capital (MONEY $$) Capital (MONEY $$) Entrepreneurship Entrepreneurship Countries like China have lots of natural resources, but do not have lots of capital because of foreign domination of resources or market Countries like China have lots of natural resources, but do not have lots of capital because of foreign domination of resources or market

19. Which Factor of Production?

20. Factors of Production Why do many jobs go to China and other countries in the Far East? There is a huge Labor Force (people willing and able to work) that will work for less $$ that American workers It is cheaper to get products manufactured in those countries

21. Scarcity and Interdependence Interdependence – the economic, political, and social dependence of culture regions on one another Scarcity – not being able to have all the goods and services one wants What if Japan had a shortage of Oil? How would they get what they need? What countries would they have to be dependent on? Middle Eastern countries