Unit 7 Review

The world is made up of nearly 200 independent countries. Each country has a government. Government has 3 functions and makes laws to carry out these functions. maintain order provide defense supply public services

levels of government – unitary systems, federal systems

Generally countries that are large in land area (size) or territories with more diverse interests favor a federal system. Smaller countries in land area are more likely to be unitary systems.

Unitary System – all key powers are given to the central or national government. The national government creates the local governments which have limited power. Examples – UK & France Another definition: One central government controls weaker states. Power is not shared between states, counties, or provinces.

Federal System – Government that divides governmental powers between the national government and state or provincial governments. Examples – US & Mexico Another Definition: Power is shared by a powerful central government and states or provinces that are given considerable self-rule, usually through their own legislatures.

Types of Government: “Who governs the state”? Autocracy – 1 person rule Oligarchy – small group rule Democracy – governments rule with the consent of the citizens.

Autocracy – Type of Government where the power and authority to rule are given to a single individual. Oldest form of government Types of Autocracies: Totalitarian Dictatorship – the decisions of a single leader determine government policies. Can come to power by election or revolution. Control all aspects of social & economic life Government is not responsible for the people, and the people have no power Stay in power by ruthless use of military or police. Examples – Sudan (Omar al-Bashir), North Korea (Kim Jong IL), Zimbabwe (Robert Mugabe)

Another Autocracy is a monarchy – a king, queen, emir, emperor, or sultan exercises the power of the government. Usually inherited (passed down from parent to child) Absolute Monarchy – monarch has complete and unlimited power to rule the people. Examples – Saudi Arabia (King Abdallah), Tonga (King George Tupou V), Brunei (Sultan Haji Bolkiah Hassanal) Constitutional Monarchy – monarch shares government powers with elected legislatures. Examples – UK (Queen Elizabeth II), Japan (Emperor Akihito), Sweden (King Carl XVI Gustaf)

Oligarchy – type of government in which a small groups holds the power. Power usually comes from wealth, military power, social position, or a combination of these elements. Two types of Oligarchies: Theocracy – religious leaders hold the power. Examples – Iran, Vatican City (Holy See) Communist Party – communist leaders and the military control the government Examples – People’s Republic of China, North Korea, Vietnam

Oligarchies and dictators sometimes try to make it appear the people have some say in the government. They may have elections, but offer only candidates from the governing party, or they control the election results. Other times they create legislatures to approve policies that the leaders have already made (yes men). Opposition is usually dealt with ruthlessly. Many opposition leaders are imprisoned or “disappear”

Democracy is a type of government in which leaders rule with the consent (approval) of the citizens – they vote. The people hold the power. Types of Democracies: Direct Democracy – citizens themselves decide on issues. Used in some places for local government level, but not for countries. In this type of democracy if we wanted to put up a traffic light outside the school – everyone in the US would have to vote on it. Only works for small areas. Representative Democracy – citizens elect representatives. The representatives have the responsibility and power to make laws and conduct the business of government. Example: Germany, US, and Canada Some Representative Democracies are Republics – voters elect all major government officials. The officials are responsible to the people. Examples: US, Poland, Israel, France

3 Basic Economic Decisions: 1. What and how many goods and services should be produced? 2. How should they be produced? 3. Who gets the goods and services that are produced?

Traditional Economy Customs and traditions determine the rules for economic activity. This type of economy is found only in a few places today – life is the same as it has been for many generations. Examples – Inuit (Eskimos) in Nunavut or Alaska or the Amish people of Pennsylvania.

Market Economy Individuals and private groups decide what they will make and what they will purchase. Consumers decide what they will and will not buy, and businesses make more of what they think consumers will buy. Free enterprise is the idea that private individuals and groups should be allowed to own property or businesses an make a profit with only limited government control. Another name for this system is capitalism. There is no country in the world that has a true market economy.

Mixed Economy Because governments have some say in economic decisions around the world – there is no true market economy. A mixed economy is one in which the government supports and regulates free enterprise through decisions that affect the marketplace. Pollution controls, minimum wages, etc. Gov. spend tax money to support social services – health care, education, and housing.

Command Economy The government owns the means of production and distribution of goods and controls all economic decision making. Governments try to distribute all goods evenly among the citizens.

Communist & Socialist Command Economies - Communism - Strict government control of a command economy and all other parts of society. Socialism - the government allows a fairly wide range of enterprise along side government – run activities. The goals of socialism are to have equal distribution of wealth, public ownership of all land, factories, and other means of production, and society’s control about all major decisions about production. North Korea at night - communist South Korea at night – mixed economy

In a communist country the government decides what to make, how much to make, and how to distribute the products. The government also decides who shall profit from the production. The job of the communist party is to make sure that the decisions about the market place are carried out. One main argument against communism is that without free choice and incentives – businesses may not innovate or produce products that people want or need. Heavy industry is usually stressed by communist nations and consumer goods are not readily available.

Barriers to trade: Governments place barriers to trade on other countries to benefit its own economy. Tariff - tax on imports. This is to influence people to buy products made in the home country. Quota - a number limit on the quantity of a particular product. Embargo - a ban on trade with another country. Embargos are usually to protest a situation in the other country. For example, we have an embargo against Cuba. We do not directly trade with Cuba.

Free Trade is the removal of trade barriers. GATT – The general agreement on tariffs and trade. It is an international agreement to reduce trade barriers. In 1994 GATT became the World Trade Organization (WTO) NAFTA – The North American Free Trade Agreement – agreement between the US, Mexico, and Canada to eliminate trade barriers between these countries. EU – European Union is a free market between the majority of Europe’s nations and is the worlds largest trading entity. Most of these countries use the EURO as currency.

Political Regions Just as each place belongs to more than one physical or cultural region, it can also belong to several political divisions City County State Country

Sovereign A national government is sovereign(supreme) within its own border. Many factors influence a governments ability to control territory and influence international events Size Population Wealth Education level Military strength Physical features

Borders National borders are the product of both physical and human processes Rivers Oceans Mountains Often modified by history Conflict political relations Invasions annexation

Need to know….. GDP Political Power What factors determine Gross Domestic Product in a country Political Power Can shift based on voting voting maps can show where distribution of political power or voting patterns are located