United Kingdom, Germany, Australia, and Russia Comparing Economies United Kingdom, Germany, Australia, and Russia

Information was retrieved from CIA World Factbook in November 2014

United Kingdom

UK’s Economic System UK has a Mixed economic system It’s actually closer to a Market economy than any other European country UK is economically strong; one of the world’s leading industrial powers

UK’s Natural Resources What’s available? Coal, petroleum, natural gas, iron ore, lead, zinc, gold, tin Why so many minerals? The Gulf Stream!

UK’s Land Use What percentage of the land is arable (capable of being farmed)? 24.88% What are the major agricultural products? Cereals, oilseed, potatoes, vegetables, cattle, sheep, poultry, & fish

UK’s Industries What’s being produced in the factories? Machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft Motor vehicles, communications devices, metals, chemicals, coal, petroleum, paper, textiles, food processing, clothing, & other consumer goods

UK’s Literacy Rate What percentage of people over the age of 15 can read and write? 99% How long are students required to stay in school? 16 years

UK’s Unemployment Rate What percentage of people do not have jobs? 7.2% What percentage of people live in poverty? 16.2%

UK’s GDP Per Capita GDP Per Capita— What is the value of goods and services produced per person? $37,500 Now this is on average. Example: 300 pieces of candy, 30 students. What is the per capita? Is that real world or Fair? Why/Why not?

UK’s Economic Problems Unemployment Over depletion of natural resources (pollution) Improving public services (which forces the country to raise taxes)

Federal Republic of Germany

Germany’s Economic System Germany has a Mixed economic system After reunification in 1990, East Germany had to move away from a Command economic system and slowly towards a Mixed system.

Germany’s Natural Resources What’s available? Coal, lignite, natural gas, iron ore, copper, nickel, uranium, potash, salt, construction materials, timber

Germany’s Land Use What percentage of the land is arable (capable of being farmed)? 33.25% What are the major agricultural products? Potatoes, wheat, barley, sugar beets, fruit, cabbages, cattle, pigs, poultry

Germany’s Industries What’s being produced in the factories? Among the world’s largest and most technologically advanced producers of iron, steel, coal, cement, chemicals, machinery, vehicles, machine tools, electronics, food & beverages, shipbuilding, & textiles (write down 3)

Germany’s Literacy Rate What percentage of people over the age of 15 can read and write? 99% How long are students required to stay in school? 16 years

Germany’s Unemployment Rate What percentage of people do not have jobs? 5.3% What percentage of people live in poverty? 15.5% More or less than GB?

Germany’s GDP Per Capita (2014) What is the value of goods and services produced per person? $39,500

Germany’s Economic Problems Modernizing the former East German economy (annual transfers from west to east of $80 billion) The former East Germany’s decayed economy continues to be a burden on the country Unemployment Over depletion of natural resources Pollution Improving public services (which forces the country to raise taxes)

Russian Federation

Russia’s Economic System Russia has a Mixed economic system Russia’s economy has been moving away from a Command economy and more towards a free Market economy since the fall of the Soviet Union in 1991…not there yet (Mixed)

Russia’s Natural Resources What’s available? Wide natural resource base including major deposits of oil, natural gas, coal, many minerals, timber *Obstacles such as harsh climate, terrain, distance, & size hinder Russia’s exploitation (use) of natural resources

Russia’s Land Use What percentage of the land is arable? Arable means… 7.11% Why? (permafrost over Siberia is a major problem for growing crops!) What are the major agricultural products? Grain, sugar beets, sunflower seed, vegetables, fruits, beef, milk

Russia’s Industries What’s being produced in the factories? Coal, oil, gas, chemicals, metals, machines, aircrafts, space vehicles, shipbuilding, communication devices, tractors, construction equipment, medical & scientific instruments, textiles

Russia’s Literacy Rate What percentage of people over the age of 15 can read and write? 99.7% How long are students required to stay in school? 14 years

Russia’s Unemployment Rate What percentage of people do not have jobs? 5.8% Better or worse than Germany? What percentage of people live in poverty? 11% Better or Worse than Germany?

Russia’s GDP Per Capita GDP Per Capita--What is the value of goods and services produced per person? $18,100 ?Thoughts?

Russia’s Economic Problems Natural resources are difficult to use because of the harsh climate, size and few navigable rivers Moving away from the former Command economy of the Soviet Union (where the government made all of the decisions), and letting the public have a greater influence on the economy Unemployment

Australia’s Economy

Australia’s Economy one of the freest economies in the world It is technically a mixed economy, but it’s close to market because there are very few rules to restrict the market. government does not own major industry or business prices are set by the agreement of buyers and sellers rather than by government rules

Australia’s Economy There are no truly pure market economies, but Australia’s is close. Businesses operate without too many rules from the government. People are free to start a business and can do so quickly. Courts use the laws of Australia to protect the property rights of citizens.

Australia’s Economy People are free to own their own businesses and property. They decide what they want to produce. Buyers and sellers are able to agree on prices, and competition between sellers helps to keep the prices good for buyers. Business owners and consumers can depend on good laws to protect them. The courts are considered fair and honest. It is very easy to start a business in Australia – the paperwork usually takes less than a week!

Economy Continuum Command Market UK US Germany Cuba Russia Australia

Australia’s Natural Resources Arable land is a valuable resource. Farmers grow lots of crops. The land also provides pasture for beef cattle (an important export). Minerals are a major export and include: coal, iron ore, copper, tin, gold, diamonds, natural gas, & petroleum. world’s leader in bauxite (used to make aluminum) Selling these natural resources brings in money from all over the world.

Australia’s Human Capital Australia invests heavily in human capital. Children are required to attend school from ages 6 to 18. Taxpayers pay for schooling for all children. The literacy rate is nearly 100%. The workforce is well-trained and well-educated. The healthcare system is very good. All of these factors improve Australia’s standard of living - one of the highest in the world!

Capital Goods in Australia Australia’s businesses use advanced technology to make their companies work more efficiently. If a company does not keep its machinery up-to-date, other companies will be able to produce similar goods for a better price.

Australia’s Entrepreneurs Australia is a world leader in entrepreneurship. One (1) in twelve (12) adults owns his own business. Laws in Australia are good for businesses because they protect entrepreneurs & their property, make it easy to start a business, and have few rules to restrict businesses. Entrepreneurs are good for Australia. Businesses keep economy moving & provide jobs for workers.

Let’s Review: What is the GDP Rate and what is Per Capita? Examples: (Third largest GDP) China GDP / Population = per capita 11.44 trillion / 1.3 billion = ? 11,440,000,000,000/ 1,343,239,923= $8,500 USA GDP/Population=per capita 15.29 trillion / 313 million = $49,000

If GDP is how much a country is spending on their economy every year… How do you contribute to the economy every week? Brainpop Supply & Demand Brainpop Money