1. China, India, Japan, & North Korea

2.  World’s largest exporter  GDP per capita = $14,300  Primary exports: electrical and other machinery, clothing, textiles  Top export partners: Hong Kong, U.S., Japan  Primary imports: electrical and other machinery, oil/fuel, medical equipment, cars  Top import partners: South Korea, Japan, Taiwan, U.S.

3. What to produce? How to produce? For Whom to Produce? 40% based on state- run industries Inefficiencies (agriculture) limit China’s growth Food production must meet self- sufficiency level; extra is exported 60% based on private sector (production decisions made by producers & consumers) Rapid economic growth Difficult to monitor pollution and consumer safety Large amounts of manufactured goods exported

4.  Diverse economy  English-speaking population major exporter in various technology-based fields  GDP per capita = $6,300 (rising gradually)  GDP breakdown—services (66%), industry (17%), agriculture (~17%)  Primary exports: petroleum products, precious stones, machinery, iron & steel  Top export partners: UAE, US, China  Primary imports: oil, precious stones, machinery  Top import partners: China, UAE, Saudi Arabia

5. What to Produce? How to Produce? For Whom to Produce? Moving toward market economy since 1991 (private sector and foreign businesses) Legal challenges and heavy tax system make operating a business difficult. Working to improve this. Food production— mostly domestic; citizens produce for family consumption Lots of corruption in business world Increasingly educated workforce (engineering and computer science) Export markets rapidly expanding for private Indian companies

6.  Economy top priority of Shinzo Abe & the Diet after several economic recessions  GDP per capita: $38,200  Primary exports: vehicles (& parts), plastic materials, power generating/conducting materials  Top export partners: China, U.S., South Korea  Primary imports: petroleum, natural gas, clothing, semiconductors, coal, audio/visual equip.  Top import partners: China (21.3%), U.S. (8.8 %), Australia

7. What to Produce? How to Produce? For Whom to Produce? Primarily market- driven Supply and demand determine production Private businesses determine production processes High standard of living = strong domestic market for goods and services Government- controlled = lower productivity rates Agriculture Major exporter because of efficiency and reputation for quality goods/services

8.  Military spending reduces availability of resources for civilians  GDP per capita: $1,800  Primary exports: minerals, metal products, manufactured goods (weapons), textiles, agriculture & fish products  Top export partners: China & South Korea  Primary imports: petroleum, coal, machinery & equipment, textiles, grain  Top import partners: China & South Korea

9. What to Produce? How to Produce? For Whom to Produce? Some small market reforms, but majority of economy controlled by gov’t. Production decisions and methods determined by government ¼ of output devoted to military— limits goods/services for rest of population Large recipient of food and aid from foreign nations Natural resources and manufactured goods exported Large underground economy (market- based)

10. Command Economy Market Economy 52— China 56.2— India 73.1— Japan 2.3—North Korea *World Average: 60.7 *Current US Score: 75.4 (11 th in the world)