Exploring World Markets AGSC 101 Ms. Bailes Fall 2002

Today We Will... w Explain how geography and climate may impact markets w Identify factors that determine the type of market existing in a country w Describe the primary differences between developed and developing countries w Explain the difference between open and closed market systems w Demonstrate the principles of supply and demand

Geography and Climate w United States - EVERYTHING!!! w South America - cassava, beans, corn, coffee, and potatoes w Asia - rice, tea, and cattle w Australia and New Zealand - wheat, beef, mutton, and dairy products w Africa - corn, sorghum, cassava, and sweet potatoes w Europe - potatoes, hogs, cereal grains, and dairy products

Market Stages w Developed Countries Mature economy Advanced food systems High level of mechanization Purchase more luxury items Greater amount of meat in their diet Adequate health care, public works, and infrastructure Examples - U.S., Canada, Japan, Australia, Russia, U.K., France

Market Stages w Developing Countries Per capita income under $3,000 per year Insufficient industrial base, infrastructure, educational resources, and health care Subsistence agriculture Primitive farming practices and little mechanization Poor market access for products Examples - Mexico, Argentina, Thailand, Taiwan, Indonesia

Market Types w Open Free, competitive market Driven by supply and demand w Closed

Market Types w Closed

Government Types w Democracy Citizens determine their own destiny by electing government officials who make laws Citizens are able to make their own choices Examples - United States, Mexico, Canada, England

Government Types w Non-Democracy Government makes decisions in regards to most every facet of daily life and allocates resources Centrally Planned Economies –Socialist and Communist Governments –Examples - China, Cuba, Vietnam, Former USSR Emerging Democracies –Former Socialist and Communist Governments –Examples - Russia, Hungary, Czech Republic

Supply and Demand w Supply - amount of goods available w Demand - willingness of a consumer to buy something

Supply and Demand w The more there is of something, the cheaper it will be. w The less there is of something, the more expensive it will be. w The more you want something, the more you’ll pay for it. w If there is more of something than you want or need, you won’t buy it as readily and the cost will decrease.