Unit 3 Some Elements of Culture Chapter 10 Economy and Culture

INTRO Do you earn money? Do you spend money? people working, manufacturing, growing food, selling goods…all examples of having a role to play in the economy

WANTS vs NEEDS make a list!!

Economics Economics: 3 QUESTIONS the study of how we use limited resources to meet our wants and needs every day we make decisions about how we use our time, money, energy, and materials 3 QUESTIONS (1). What goods and services should be produced? (2). How should they be produced? (3). Who gets these goods and services, and how much do they get?

Consider… If you were in government and had to make decisions about the money being spent in schools, how would you prioritize your spending?

Economics Terminology Profit: in business, when income is greater than your costs, you have made a profit. Market: any places where buyers and sellers come together could be an actual place (“farmer’s market”), could be online (“world oil market”) markets set prices…that may change for various reasons Entrepreneur: someone who sets up and runs a business – accepts responsibility for any risks involved Trade-off: in business (or life, in general), to have one thing you may have to give up having something else

Economic Resources What are some economic resources???? Natural Resources - useful things in nature…land, water, etc. Goods – needs and wants…clothes, cars, iPads, etc. Services – jobs we need or want done…health care, education, etc. Capital – resources used to produce goods and services…money, computers, tractors, tools, etc. Labour – workers…carpenters, teachers, police officers, etc.

Economic Systems In the past there were 3 main types of economic systems: (1). Traditional – a system where decisions about how to use resources are based on practices of the past (2). Command – a system in which all farms, businesses, and factories are owned by the government, and all production decisions are controlled by the government (3). Market – a system in which decisions about how to use resources are made by buyers and sellers ***see Figure 10.5 on p.144 of textbook for more detail today, most countries have a mixed market economy, which includes features of all three in this type of economy the government controls some aspects such as safety of working conditions and some goods and services

In an economic system people are: PRODUCERS: a person/community that makes goods or provides services CONSUMERS: a person who buys and uses goods and services

CHINA’S ECONOMY AGRICULTURE/FARMING 1949 –when CCP came to power, this was the main economic activity government (dictatorship) decided what crops and livestock to raise, how much to produce, and set prices created communes: large farms run by a group of people who share in the work and the income there were approx 60 000 communes by 1979, each with about 13 000 people…necessities of life (food, clothing, shelter provided by government)…few luxuries (TV, radio, etc.)

INDUSTRIES During the time of Mao… coal and iron mines large government-owned factories built shortage of some goods such as TV’s, radios, jeans, etc. 1958 all people had to do some form of physical labour (ex. shovelling, building dams, canals) expectations were increased for production on communes and factories DID NOT GO AS PLANNED (about 20 million people died, production went down)

ECONOMIC CHANGE 1978 –new leader, Deng Xiaoping more economic freedom to grow economy more international trade foreigners could start businesses 180 million farms given to private owners privately owned factories permitted Special Economic Zones created with greater economic freedom (lower taxes and wages, foreign- owned companies have set up businesses) resulted in significant growth in China’s economy in the past 30 years

Some of China’s IMPORTS/EXPORTS IMPORTS (items brought into China) machinery cars rubber wheat oil EXPORTS (items coming out of China) bicycles clothing shoes cloth telephone and sound equipment

ECONOMIC CHANGE AND CULTURE IN CHINA changing economy – has influenced a cultural change more goods for people to buy television and Internet bring new ideas (could be good and bad…) more pollution increased demand for electricity

GLOBALIZATION OF TRADE GLOBAL TRADE: a trend towards removing barriers to trade among countries around the world in the past, many goods from other countries were limited or taxed to protect the economy of that country today, FREE TRADE is more common – taxes on some goods have been lowered or removed Canada’s biggest trading partner is the USA (ex. cars, newsprint, oil, computers,…) 1994 –NAFTA –North American Free Trade Agreement: Canada, USA, and Mexico agreed to remove taxes on some goods European Union: a group of countries in Europe that have a free trade agreement in place

Three main economic regions that produce most of the world’s goods and services: (1). North America (15% of world’s exports) (2). European Union (41% of world’s exports) (3). East and Southeast Asia (21% of world’s exports)

Pros and Cons of GLOBAL TRADE more opportunities to buy and sell greater choice of goods more people involved in developing new products wages will increase improves food supply and education human rights improved with introduction of new ideas workers in China and other countries are being taken advantage of doesn’t help all countries (ex. Africa) good-paying jobs are lost in Canada greater importance on exports than on a local sustainable economy scarce resources in some countries used to provide cheap products to richer countries loss of local culture to big global companies