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

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.

Southern & Eastern Asia Economic Systems Activity

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

China 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.

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

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 of the 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).

Japan 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.

Japan The Japanese government owns few businesses other than the country’s major TV network, but does not oversee many aspects of the economy like banking and trade.

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

With a seat partner, discuss: 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?

Southern & Eastern Asia Economic Systems: Which one does not belong?

Southern & Eastern Asia Economic Systems Summarizer

Key Vocabulary Tariff Embargo Quota Currency Trade barrier Specialization Investment Exchange Literacy rate Standard of Living International trade Entrepreneurship Natural resources Gross Domestic Product (GDP) Human capital [education and training] Capital [factories, machinery, technology]