1. Modern World Economic Issues Unit 20

4. NORTH – highly industrialized – high literacy rate – high standard of living SOUTH – industry not yet developed – poor education systems – much poverty “developing” nations: nations that are trying to become more modern they are often refereed to as being “Third World” nations (The “West” = 1st World - the old Communist nations = 2nd world) Characteristics of a developing nation: Lack of modern technology Too much dependency on a single cash crop Too much international debt (taxes can’t help the people → they have to pay back loans) Lack of industry Few skilled workers Poor access to raw materials Little investment money (capital) Political instability International Assistance Organizations: These provide economic assistance to “developing” areas when needed The World Bank UNICEF The World Health organization (the “WHO”) The International Monetary Fund (the “IMF”)

5.   Re-emergence of JapanAFTER WWII:  U.S. Occupation/Aid  Following WWII  the U.S. “occupied” Japan and provided economic aid to rebuild Japanese businesses  The U.S. provided a market for cheap industrial products from Japan  The Japanese Industrial Style  At first  they copied what worked in other industrial nations  Then  they developed their own methods  teamwork  robotics  Why Japan had such great industrial success  Their Educational System: helped train workers for industry  There is little military: government can focus spending on industry  Their government helped the businesses:  Tariffs: taxes on products coming into Japan from other nations  Embargoes: certain products are restricted from being allowed into the country  Their “Balance of Trade”  After awhile  Japan developed a favorable “balance of trade” with the U. S. (they made more money off the U.S. than we made off them)  Rise of “Asian Tigers”  Rapidly developing nations in Asia are known as the “Asian Tigers”  They include: Taiwan, Hong Kong, Singapore, and South Korea  The Future?  China: as they convert from Communism to Capitalism  South East Asian nations: Vietnam – Indonesia - Malaysia