Traditional Economy Traditional Economies, found in rural regions, practice subsistence farming

COMMAND ECONOMY 1.Command –Communist An economy in which the government owns almost all the land and natural resources and makes most of the economic decisions. Ex.: North Korea, Cuba

INDUSTRY / BUSINESS Retail - C onsists of the sale of physical goods or merchandise from a fixed location.sale Example: Target, Wal-mart, Old Navy, Supermarket

Industry Agriculture – prepare and process raw materials (natural resources), such as timber, wheat, and iron ore. example: farms, mining company, logging company

A company that supports or helps another business to sell products is considered a SERVICE BUSINESS LIKE THE ELECTRIC COMPANY THE CABLE PROVIDER OR THE INTERNET

Wholesale – service industries, move goods (transporting) from the manufacturer to another business or to consumers example: Sam’s Club, McLane's Food Distribution, Kellogg's

If there were not enough workers to manufacture electronics the U.S.A. Would have a problem! ELECTRONIC SHORTAGE

Scenario: Iran has stopped selling Oil. The US is in short supply of gasoline The price of gasoline will go up!

A Developed Economy High GDP High Life Expectancy High Literacy Rate People in developed economies have access to education and healthcare

Mr. Brown wants to start a new business; what does he need to consider when locating his new factory? Available Literate (able to read) workers Near needed resources Transportation available

Texas has run out of cows! What would the logical solution be if you were in the business of making leather boots? Move your company to Montana where there are plenty of cows

The scarcity of resources causes countries to trade peacefully, But!!!! It can lead to military conflict A country could deal with uneven resource distribution through economic interdependence and trade with other countries that do have the resources

Democratic countries usually have Market / Free enterprise economies If the government chose which products that companies were allowed to produce the choice of products to buy would be limited.

Economic Systems 1.Command – An economy in which the government owns almost all the land and natural resources and makes most of the economic decisions. Exampe: Cuba & North Kora Market / Free Enterprise – An economy in which the people own and control businesses. Example: U.S. Japan Traditional Economies, found in rural regions, practice subsistence farming

Wants & Needs Wants ( I WANT) i-POD 60 inch TV New Truck Swimming pool More shoes Needs (requirements for living) Food Cloths Shelter

People in Traditional Economies practice, subsistence farming and raise only enough food for themselves and their families Traditional Economies are found in rural regions,