Standards: 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.

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

China China is moving away from a command economy completely controlled by the Communist government to a mixed market economy overseen by the Communist government. Allowing more foreign investment.

(ex: letting farmers choose what they produce) China China’s reforms of adding parts of a market economy have led to excellent economic growth. (ex: letting farmers choose what they produce)

Overview of China’s economy GDP: $10.98 trillion (2015) GDP per Capita: $14,100 Literacy Rate: 96.4% Stats provided by CIA World Fact Book

India India has moved from a command economy to a mixed economy. After independence in 1947, India’s government set up a command economy. In 1991, India started lifting some government control and allowed citizens a role in running some of its industries.

India 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).

Overview of India’s economy GDP: $2.091 trillion (2015) GDP per Capita: $6,200 Literacy Rate: 71.2%

Japan Japan has a mixed market economy (one of the strongest in the world) Japan has few natural resources and little farmland, therefore, they must import (bring in) raw materials and food.

One of the most technologically advanced economies in the world. Japan One of the most technologically advanced economies in the world.

Overview of Japan’s economy GDP: $4.123 trillion (2015) GDP per Capita: $38,100 Literacy Rate: 99%

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

North Korea Farmers work on cooperatives where up to 300 families share the work. What does this sound like???

North Korea The economy has serious problems and massive food aid from other countries has been needed to avoid widespread starvation.

Overview of N. Korea’s economy GDP: $28 billion (2014) GDP per Capita: $1,800 Literacy Rate: 100%

Overview of the United states economy GDP: $17.95 trillion (2015) GDP per Capita: $55,800 Literacy Rate: 100%

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?