Southern & Eastern Asia Economics

Standard: The student will analyze different economic systems Essential Question: What are the differences and similarities between the economic systems of China, India, Japan, and North Korea?

Activator What are the four types of economic systems we have previously talked about?

The 4 Economic Systems Market: people make decisions Command: government makes decisions Mixed-Market: people and the government have input Traditional: based on traditions and the way their families did things

Economic Variety What does variety mean? How can you have a variety of something in economics?

China’s Economy China is transitioning from a command economy completely controlled by the Chinese Communist government to a mixed market economy overseen by the Chinese Communist government Controlled vs. Overseen….what is the difference??

North Korea’s Economy Command economy controlled by its Communist Government Farmers work on cooperatives where up to 300 families share the work Massive food aid from other countries has been needed to avoid starvation!

Japan’s Economy Japan has a mixed market economy-one of the strongest in the world! The government owns few businesses, but does oversee banking and trade. They have built their economy around manufacturing and fishing. Why??

India’s Economy India has a mixed economy that is moving away from a command After gaining independence in 1947, India’s government first set up a command economy, but in 1991, began to lift its control to allow citizens to run industries Many of India’s citizens still live in extreme poverty

Standard: The student will explain how voluntary trade benefits buyers and sellers in Southern & Eastern Asia. Essential Question: How do trade barriers and specialization encourage/discourage trade?

Summarizer Create your own scenarios with the following vocabulary terms Tariff Quota Embargo Opportunity Cost Specialization Currency Exchange

Standard: The student will describe factors that influence economic growth and examine their presence or absence in India, China, and Japan. Essential Question: What are the factors that influence economic growth in Southern & Eastern Asia?

Activator Give 4 examples of capital goods Give 2 examples of natural resources Give 1 example of human capital Give 1 example of entrepreneurship

Investments Pay Off Why would investing in something be a good decision? Whether it’s in economics or something else… How would investing in education and skills training (human capital) for workers affect the GDP? How would investing in capital goods affect the GDP?

What’s Up With India? Education and investment in human capital is a MAJOR priority of the government Numbers of schools have grown dramatically. Why? English is taught in all schools. Why? Many Indians are skilled in information technology due to the English and computer skills of many citizens. Computer Call Centers The government has neglected capital investment in the country’s infrastructure Leads to terrible roads and frequent power outages Many small towns have power a few hours a day so large cities can have power 24 hours a day.

Checking In On China China has made significant investments in human capital by improving its educational system They have poured money into capital investments and manufacturing as well.

Japan’s Economic Journey At the end of WWII, Japan’s land and economy were in total ruins, but they have come a long way! Much Like India and China, Japan also places a heavy emphasis on education Competition is fierce and students must take entrance exams to get into high school and college! Japan also invests heavily in capital: especially technology in order to provide its workers with the latest equipment.

Rich in Natural Resources? China: many natural resources including coal, iron ore, and petroleum. Rivers help with minimal agriculture India: fertile land and ample water supply are its most valuable resources. About half of the land is arable and they grow rice and wheat Japan: little farmland and natural resources. They import raw materials for manufacturing and export fish.

Keep Those Ideas Coming! Why are entrepreneurs so important a country’s economy? Entrepreneurship is dramatically rising in China and India Rapid growth and huge population can offer excellent opportunities, especially with government support Japan has one of the lowest rates of entrepreneurship because they face difficulties getting loans Japanese companies typically guarantee lifetime employment for their employees…so why leave the job security?