1. China, India, Japan, & North Korea
Economies of Asia

2. China—Overview World’s largest exporter GDP per capita = $14,300
Primary exports: electrical and other machinery, clothing, textiles
Top export partners: Hong Kong, U.S., Japan
Primary imports: electrical and other machinery, oil/fuel, medical equipment, cars
Top import partners: South Korea, Japan, Taiwan, U.S.

3. China—How do they decide…
What to produce?
How to produce?
For Whom to Produce?
40% based on state-run industries
Inefficiencies (agriculture) limit China’s growth
Food production must meet self-sufficiency level; extra is exported
60% based on private sector (production decisions made by producers & consumers)
Rapid economic growth
Difficult to monitor pollution and consumer safety
Large amounts of manufactured goods exported

4. India—Overview Diverse economy
English-speaking population major exporter in various technology-based fields
GDP per capita = $6,300 (rising gradually)
GDP breakdown—services (66%), industry (17%), agriculture (~17%)
Primary exports: petroleum products, precious stones, machinery, iron & steel
Top export partners: UAE, US, China
Primary imports: oil, precious stones, machinery
Top import partners: China, UAE, Saudi Arabia

5. India—How do they decide…
What to Produce?
How to Produce?
For Whom to Produce?
Moving toward market economy since 1991 (private sector and foreign businesses)
Legal challenges and heavy tax system make operating a business difficult. Working to improve this.
Food production—mostly domestic; citizens produce for family consumption
Lots of corruption in business world
Increasingly educated workforce (engineering and computer science)
Export markets rapidly expanding for private Indian companies

6. Japan—Overview
Economy top priority of Shinzo Abe & the Diet after several economic recessions
GDP per capita: $38,200
Primary exports: vehicles (& parts), plastic materials, power generating/conducting materials
Top export partners: China, U.S., South Korea
Primary imports: petroleum, natural gas, clothing, semiconductors, coal, audio/visual equip.
Top import partners: China (21.3%), U.S. (8.8 %), Australia

7. Japan—How do they decide…
What to Produce?
How to Produce?
For Whom to Produce?
Primarily market-driven
Supply and demand determine production
Private businesses determine production processes
High standard of living = strong domestic market for goods and services
Government-controlled = lower productivity rates
Agriculture
Major exporter because of efficiency and reputation for quality goods/services

8. North Korea—Overview
Military spending reduces availability of resources for civilians
GDP per capita: $1,800
Primary exports: minerals, metal products, manufactured goods (weapons), textiles, agriculture & fish products
Top export partners: China & South Korea
Primary imports: petroleum, coal, machinery & equipment, textiles, grain
Top import partners: China & South Korea

9. North Korea—How do they decide…
What to Produce?
How to Produce?
For Whom to Produce?
Some small market reforms, but majority of economy controlled by gov’t.
Production decisions and methods determined by government
¼ of output devoted to military—limits goods/services for rest of population
Large recipient of food and aid from foreign nations
Natural resources and manufactured goods exported
Large underground economy (market-based)

10. Where are they on the continuum?
Command
Economy
Market
Economy
56.2—India
2.3—North Korea
52—China
73.1—Japan
*World Average: 60.7
*Current US Score: 75.4 (11th in the world)

11. Asian Economies—Quick Quiz
Market
Command
China
Japan
India
North Korea
Economic system w/ almost full government control
Economic system driven by supply and demand
Country that is closest to full market
Country with the most government control
Country that is considered the world’s leading exporter
Country with a diverse economy, becoming more market-based