Bellringer-Write questions and answers in your notebook 1.Who makes the decisions in a command economy? 2.What are decisions based on in a traditional economy? 3.Who makes the decisions in a market economy? 4.Why are all economies now considered mixed?

Asian Economies

Enduring Understanding Production, Distribution, and Consumption The student will understand that the production, distribution, and consumption of goods/services produced by the society are affected by the location, customs, beliefs, and laws of the society.

Georgia Performance Standards SS7E8 The student will analyze different economic systems. c. Compare and contrast the economic systems in China, India, Japan, and North Korea.

China-Copy (Remember, write down key words and abbreviate as much as possible) Today is considered a mixed economy Has been moving from a command economy, closer to market by gradually reducing government control over the past 25 years (I know it is hard to believe, but there was a time when all goods were not ‘Made In China’!) This transition is helping China’s economy grow rapidly Experts think they will be the number one economy in the world within 20 years. Now you see more foreign businesses and more consumer choice

India-Copy Mixed economy When they gained independence in 1947, they set up a command economy In 1991, they started moving from command towards market, but government still owns many businesses Agriculture has always been a big part of the economy, but the service industry has grown tremendously since the move towards a market economy. Outsourcing technical support (hiring people in another country and paying them a lower wage) has helped Indian workers, but has hurt American workers

Japan-Copy Mixed economy One of the strongest economies in the world Built its economy around manufacturing and technology because of their lack of natural resources. They import raw materials, use them to manufacture goods, then export those goods around the world. This enables them to trade for things that they don’t have a lot of like food. Little government involvement Most similar to U.S.

North Korea-Copy Technically a mixed economy, but… Some textbooks consider them to be command. Government controls resources and decides what will be produced (no consumer choice) They accept help from other countries to avoid massive starvation in the country Because of their weak economy, the government is giving up some control North Korea’s economy is similar to what China’s economy was 50 years ago.

Comprehension Check We know they are all mixed, but write if they are closer to traditional, market, or command and tell me why. – China – India – Japan – North Korea Draw the line on the following slide on under North Korea

Economic Systems Pure Market North Korea 2% India 54% Japan 73% China 53% Pure Command