1. 7 th Grade SS

2.  Chief of State = President  Elected by electoral college (5-yr. term)  Head of Government = Prime Minister  Head of majority party in legislature  Federal  ALL citizens over 18 may vote for legislators.

3.  Chief of State = President  Elected by the National People’s Congress (but really only one party exists – The Chinese Communist Party)  Head of Government = Premier  Head of Chinese Communist Party (ruling party)  Unitary

4.  Chief of State = Emperor of Japan  Little/no power—a “symbol of the state”  Head of Government = Prime Minister  Prime Minister and Cabinet of Ministers hold all executive power  Unitary  Universal voting rights for all adult citizens

5.  North Korea – autocracy (dictator – Kim Jong Un)  China – oligarchy (National People’s Congress)  Japan – (parliamentary) democracy  India – (parliamentary) democracy  India has a president, but it is a ceremonial role.

6.  3 Basic Economic Questions:  What to produce?  How to produce?  For whom to produce? COMMAND MARKET China India Japan North Korea

7.  What?  40% of economy is based in state-run industries.  60% is based on the private sector (supply/demand, consumer/producer).  How?  State-run industries have inefficiencies that limit economic growth.  Private market has grown so fast that regulations about consumer safety and environmental pollution can’t keep up.  For whom?  Must produce food to support large population. (problems with food storage)  Exports manufactured goods

8.  What?  1991 – markets slowly opened to private sector  Majority of population depends on subsistence farming  Lots of bureaucracy and corruption in creating a business  How?  Increasing regulation of rights, but many legal challenges exist.  Increasingly educated workforce (engineering and computer science)  Complex and corrupt tax system hurts business owners.  For whom?  Produce food for citizens (subsistence)  Software and business process outsourcing is growing as an export.

9.  What?  Market-driven (supply and demand)  Agriculture – government control (lower productivity)  How?  Private businesses determine production.  For whom?  High standard of living with lots of things available  Major exporter due to high quality of goods and services

10.  What?  LEGAL economy controlled by government (with some small market reforms)  Underground economy – more market-based.  Receives lots of food and basic service aid from Non- Governmental Organizations and foreign nations (U.S.)  How?  Production processes determined by government  For whom?  ¼ of economy is for the military (which decreases the amount of goods/services for the citizens).  Exports manufactured goods and natural resources

11. GDP Literacy Rate School Life Expectancy Real Growth Rate Capital Investment China $12.38 trillion92.20%12 years7.80%47.8% of GDP India $4.784 trillion61%10 years6.50%30% of GDP Japan $4.525 trillion99%15 years0.20%21.1% of GDP *Investment in Human Capital: education and training *Investment in Capital: factories, machinery, technology *How are each of these related to GDP? ** Countries with large economies can have a low real growth rate because they are so large.