1. Political & Economic Systems

2. Questions to ask yourself
What are four characteristics shared by all countries?
How do various types of governments/economic systems differ from one another?

3. Key Terms Sovereignty Totalitarianism Unitary System Monarchy
Federation
Democracy
Confederation
Traditional Market Economy
Authoritarian
Market Economy
Dictatorship
Command Economy

4. 4 characteristics 4 characteristics that define a country Territory
Population
Sovereignty
Government

5. Territory Land, water & natural resources within its boundary
Russia = 6.5 million square miles
Vatican = 0.17 square miles
USA = 3.7 million square miles
Disputes over territory have led to many wars
Geographic factors = influence a nation’s power to control territory – Ex. Great Britain

6. Population Population does NOT determine the existence of a country.
Canada & Australia = vast lands largely unpopulated
Japan & Netherlands = smaller - Densely populated

7. Sovereignty A nation’s freedom from outside control
A country that can rule itself by establishing
Own policies
Its own course of action
A country that is entitled to act independently, deal equally with other foreign powers & protect its territory and citizens.

8. Sovereignty Geographic Factors have led to benefits
Great Britain – Island Nations (separated by water from mainland Europe)
Switzerland – Surrounded by mountains
Geographic Factors have also led to disadvantages
Belgium & Poland – easily passed over with invasions
Russia – been invaded many times but climate allows independence (Napoleon & WWII)

9. Types of Government Government Structure:
Unitary System: If one central government runs the nation
Great Britain & Japan
Federation: some powers are given to the central gov’t while other powers are reserved for local gov’ts
USA
Confederation: smaller political units keep their sovereignty & give the central gov’t very limited powers

10. Government Authority
Authoritarian Gov’ts: The leaders hold all, or nearly all the political power.
Dictatorship – power concentrated into a small group or even a single person.
Use of military force to gain & exercise power
Totalitarianism – Gov’t tries to control ALL aspects of society, politics, the economy and personal live.
HITLER - NAZI GERMANY, STALIN- THE SOVIET UNION
Monarchy – Kings & Queens, pharaohs, shahs, sultans inherit their positions by being born into ruling family

11. Democracy
Any country in which people choose their leaders and have the power to set gov’t policy
Some have set aside Authoritarian Gov’ts and settled on Democracies
Germany & Japan
Russia

12. Types of Economic Systems
3 questions:
What (and how many)goods & services will be produced?
How will these goods be produced?
How will the products and the wealth gained from their sale be distributed?

13. Types of Economic Systems
Traditional Economy: when goods & services produced are consumed in their own families or villages
Where little surplus is produced – little need for a market
Market Economy: Free Enterprise System –
Gives great freedom to individuals & groups
Govt’s only interaction is limited – protecting the public –
Ex. = Worker Health & safety and environmental pollution

14. Types of Economic Systems
Command Economy: When nearly all economic decisions are made by a central government.
Decides:
What will be produced
How it will be produced
How much will be produced
Where it will be located
The prices

15. Mixed Economy Usually Socialist Nations:
The state should run some basic industries
Transportation, communication, banking, coal mining, & steel industry while private enterprise operates other parts of the economy.
Leads to high taxes in order to fund:
Public housing, health care, child care, & retirement pensions