1. Global Economic Issues Unit 7 Section 2

2. Section Overview Countries in places such as South Asia, Latin America, and Africa struggled to industrialize, improve agriculture, and curb population growth (After World War II). On the other hand, Western Europe and Japan’s economy grew rapidly.

3. Market Economies and Command Economies Define a Market Economy Define a Command Economy Give examples of where these economies are located.

4. The Economies of Developing Nations What are the differences between developed nations and developing nations? Developed nations- modern agriculture, modern industries, advanced technology, strong educational systems Developing nations- nations with limited resources and without modern industrial economies

5. The Economies of Developing Nations Obstacles of developing countries include: overpopulation, natural disasters, and indebtedness Some of these nations are gaining independence from imperialism Goals to fix economic problems: Build Industry Improving agriculture Controlling population

6. Case Study: India Mixed economy Industry was brought under government control Dams held hydroelectric power Government regulated seeds, fertilizers, and irrigation India lacked oil and natural gas

7. Case Study: Egypt Gamal Abdel Nasser- leader of the government Socialist government and economy Nasser nationalized banks and businesses and instituted land reform Peasants were given land Nasser’s successor: Anwar Sadat- encouraged foreign investment Moved toward Free Market practices

8. Case Study: Latin America The nations of Latin America experienced unrest Had to move from cash crops to staple crops Had uneven land distribution Nations had to borrow money to build industry Recession hit, the nations were unable to repay Moved to Free Market for reform Population continued to rise

9. Economic Recovery and Cooperation in Europe West Germany- able to rebuild because it had a strong industrial background Seen as the “economic miracle” Rebuilt cities and factories East Germany had to struggle to change to a Free Market economy

10. European Coal and Steel Community 1952 France, West Germany, Belgium, Italy, the Netherlands, and Luxembourg Set up European Coal and Steel Community to regulate the coal and steel industries to stop any spur in prices

11. Common Market 1957 France, West Germany, Belgium, Italy, Netherlands, and Luxembourg Set up the European Community (EC) Allowed for free trade Ended tariffs

12. European Union 1993 European Community expanded to European Union Now 12 members New currency used among all of the countries Helped keep European countries economy strong

13. Japan: An Economic Superpower US brought economic reform to Japan Japanese workers were given right to form unions Land reforms US tried to bring an end to Zaibatsu- powerful family owned business Japan began manufacturing Balanced trade between imports and exports Japan experienced a recession in 1980s

14. Pacific Rim Southeast Asia and East Asia became known as the Pacific Rim (group of nations in Asia and the Americas that border the Pacific Ocean) “Asian Tigers”= Taiwan, Hong Kong, Singapour, and South Korea Had aggressive economic growth

15. Oil and OPEC Oil became the most important energy resource after World War II Much of our oil comes from the Middle East OPEC- Organization of Petroleum Exporting Countries- Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela Goal: control the oil industry by setting production levels and prices