Presentation on theme: "How do the countries of India, China, Japan, and North Korea answer basic economic questions?"— Presentation transcript:
How do the countries of India, China, Japan, and North Korea answer basic economic questions?
SS7E8a. Compare how traditional, command, market economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. SS7E8b. Explain how most countries have a mixed economy located on a continuum between pure market and pure command. SS7E8c. Compare and contrast the economic systems in China, India, Japan, and North Korea. SS7E9c. Explain why international trade requires a system for exchanging currencies between nations.
Southern & Eastern Asia Economic Systems Activity
Use the Southern & Eastern Asia Economic Systems Graphic Organizer to record information
China is moving from a command economy completely controlled by the Chinese Communist government to a mixed market economy overseen by the Communist government. China is gradually reducing government control and allowing more foreign investment.
China’s reforms of adding components of a market economy have led to excellent economic growth.
India has moved from a command economy to a mixed economy. After independence in 1947, India’s government set up a command economy. In 1991, India started lifting some of the government control and allowed citizens a role in running some of its industries.
Although the movement from a command to a mixed economy has been good for India’s economy, millions of people still live in poverty (food production is mainly for their own family consumption).
Japan has a mixed market economy (one of the strongest in the world) Japan has built its economy around manufacturing (it has little natural resources and farmland). Japan imports raw materials and then uses them to manufacture goods to export around the world.
The Japanese government owns few businesses other than the country’s major TV network, but does not oversee many aspects of the economy like banking and trade.
North Korea has a command economy controlled by its Communist government. The government controls all the resources and decides what is to be produced.
Farmers work on cooperatives where up to 300 families share the work. The North Korean economy has serious problems and massive food aid from other countries has been needed to avoid widespread starvation.
In which country would you most like to live? Why? In which country would you least like to live? Why? In which country would you have opportunity to become an entrepreneur? Why? Why do you think governments with command economies eventually begin to give up some of their control?