1. Bellringer In your spiral notebook answer the following questions:
In which economic system are individuals allowed to own property and resources and profit from their own business?
In which economic system does the government control or own all resources and make key economic decisions?
Which economic system would likely show more economic growth over a long period of time? Why?

2. Students objectives
After completing this lesson student will be able to:
Identify the principles of Socialism and Communism
Identify levels of economic activity.
Analyze factors that contribute to Globalization.

3. Resources and Trade

4. Socialism and Communism
Formed the basis of a Command economy.
Based on the ideas of Karl Marx
Socialism was in response how Serfs were treated in society.

5. Socialism and Communism
Serfs worked basically as slaves.
They were bound to the Lord of the Manor.
They could buy their freedom
This rarely happened.
Marx developed the philosophy of socialism from witnessing this.

6. Socialism and Communism
Socialism advocates the public or State ownership of land and resources.
Vladimir Lenin used this philosophy to establish Communism
Communism impedes innovation, personal incentive, and economic progress.

7. Resources and Trade
The earth provides all the elements necessary to sustain human life.
What must humans have in order to survive?
Humans use natural resources to meet these needs and to increase their standard of living.

8. Resources and Trade
All resources can be classified into two categories.
Renewable Resources that cannot be used up or can be replaced naturally.
Non-renewable Resources that cannot be replaced.

9. Resources and Trade
What factors impact the economic standard of living of an area?
Distribution of natural resources
Economic systems
There are four levels of economic development.
Primary
Secondary
Tertiary
Quaternary

10. Resources and Trade
Primary Economic Activities involve taking resources directly from the earth.
Drilling for oil
Farming
Secondary Economic Activities using raw materials to make something new and more valuable.
Refining oil
Making bread

11. Resources and Trade
Tertiary Economic Activities provide services to people and business.
Does not involve making a product.
Most of the GDP of the USA is from service industries.
Quaternary Economic Activities involves the processing management and distribution of information.

12. Cottage Industries
Cottage industries- usually small-scale industry carried on at home by family members using their own equipment.
While there are some in developed countries, these are very common in developing countries.
Profit is small
Mostly based on need.
Hand made items
Quantity produced is low

13. Subsistence Farming
Similar to Cottage industries; Subsistence agriculture is self-sufficiency farming in which the farmers focus on growing enough food to feed themselves and their families.
Small plots of land
Very little if any “Technology”
Very low production level
Very “Labor intensive”
High Birth rates

14. Commercial Industries
Commercial Industries are those that seek to produce items for a large profit.
Will employ large number of workers
Will produce items by machine
Are privately owned
Are common in developed countries

15. Commercial Farming
Commercial agriculture is a large-scale production of crops for sale, intended for widespread distribution or export.
Occurs in most developed nations.
Large plots of land
Primarily facilitated with technological assistance.
Tractors/Harvesters
Typically not labor intensive

16. Developed vs. Developing Countries
Which type of country has more economic activities, Developed or Developing countries?
What is required to progress and develop higher level economic activities?
Are all resources evenly distributed across the world?
What must countries do in order to acquire more resources?
Do all countries trade with each other?

17. Trade Restrictions Some countries place tariffs on imported goods.
A Tariff is a tax on an imported good
Why would the USA place a tariff on a Japanese car?
Governments can also place Quotas and Embargos on other countries to restrict trade.
Quota a numerical limit on the number of goods.
Embargo a complete ban on trade with another country

18. Trade Alliances
Many countries have established free trade and removed trade barriers with other countries.
The USA established NAFTA with Mexico and Canada.
Was this good for America?

19. Globalization
Globalization- is a process of interaction and integration among the people, companies, and governments of different nations.
When did it begin?
1492?
Generally economically driven.
Foreign labor sources are often less expensive
Where are most of your clothes made?