1. How do the countries of India, China, Japan, and North Korea answer basic economic questions?

2. 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.

3. Southern & Eastern Asia Economic Systems Activity

4. Use the Southern & Eastern Asia Economic Systems Graphic Organizer to record information

5. 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.

6. China’s reforms of adding components of a market economy have led to excellent economic growth.

7. China – Heavy investment in human capital – Four Modernizations program (1970’s) 1.Farming 2.Military 3.Industry 4.Scientific and technical research – Economy continues to grow as a result SS7E10 – a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

8. India – ½ of population works in agriculture – Green Revolution of 1960’s led to modernized farming, but also led to pollution of water due to fertilizer and pesticides – Huge technology and service industry helping develop middle class. – Moved from command economy to mixed SS7E8 – b. Compare and contrast the economic systems in China, India, Japan, and North Korea.

9. 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).

10. India – Rural India uses traditional economy to farm 25% of GDP – One of the worlds top ten industrial nations – Stressed education during past decades – Leading software producer in the world SS7E10 – a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

11. Japan – One of the most technologically advanced economies in the world – Very little farmland and few natural resources – Fishing is large industry – One of most highly educated populations in the world SS7E8 – b. Compare and contrast the economic systems in China, India, Japan, and North Korea.

12. 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. Japanese Government owns few businesses.

13. Japan – One of the most powerful industrial nations in the world – Among most highly educated in the world – Solid work ethic SS7E10 – a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

14. India – Some of world’s largest companies started by Indian entrepreneurs China – Relatively new – Government decided to let entrepreneurs lead the way Japan – Land of entrepreneurs SS7E10 – d. Describe the role of entrepreneurship.

15. North Korea – Least open and most government-directed economies in the world today – Government owns all land, factories, and jobs – Rich mineral resources have allowed for industry to grow, but is strictly controlled by government SS7E8 – b. Compare and contrast the economic systems in China, India, Japan, and North Korea.

16. North Korea has a command economy controlled by its Communist government. The government controls all the resources and decides what is to be produced.

17. 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?