Governments and Economies of the World

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Governments and Economies of the World
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Political Systems

• Dictatorship
• Control of the government One person / a small
  group
• Voting None
• Very little freedoms and choices
• No free speech, free media, freedom of religion,
  etc.
• Examples Iran, Vietnam, China, Cuba
• Totalitarianism
• Extreme form of dictatorship
• Government has total control of your life
• Examples (Fascism Nazism Hitler, Stalin,
  North Korea)

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• Democracy
• Control Citizens control the government through
  voting and serving in the government
• Voting Free elections, open participation
• Referred to as a Western-style government
• Two types
• Direct Democracy The people make all of the
  actual decisions
• Examples Ancient Greece (Athens), No modern
  national examples
• Indirect Democracy The people elect others to
  make the decisions
• Examples US, Western Europemost countries in
  world

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• Monarchy
• Control Monarch (king or queen) maintains power
• Power kept within the family
• Two types
• Constitutional Monarchy Monarch has limited
  power shares power with an elected body
  Parliament
• Democratic government
• Examples UK, Spain, Netherlands, Nepal, Japan
• Absolute Monarchy no citizen control Monarch
  holds all the power
• Dictatorship
• Example Saudi Arabia, Brunei, Oman

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Economic Systems

• Capitalism
• Prices are set by the market
• Supply and Demand determines market decisions
• Wages, prices, what to sell, popular vs.
  unpopular goods/services, etc.
• Also known as Market Economy, Free-Market, Free
  Enterprise
• Works with Democracy

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Equilibrium
Price







Quantity of goods
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Price

Demand

Demand increases





Quantity of goods
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Price
Supply drops







Quantity of goods
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• Communism
• Created to be an solution to capitalism
• Capitalism creates unfairness in society
• Owners dont do anything and make lots of money
• Workers do all the work and make a lot less
• Solution Government owns all business, means of
  production
• Prices are set by the central government
• Goal Make everyone equal
• Government makes all market decisions
• Government determines what is made/sold, prices,
  wages, jobs, etc. so everyone is equal
• No private business allowed no classes
• Prices are kept artificially low so everyone in
  society can afford goods
• Leads to shortages, corruption, etc.

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• Est. by Karl Marxs Communist Manifesto (1848)
• Also known as Command Economy
• Only works with Fully socialized countries
• Followers Communists, Marxists
• Countries USSR, China, Vietnam, Laos, N. Korea,
  Cuba

Communism must have Socialism to work Socialism
does not need to have Communism
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• Socialism
• Governments goal is to reduce the extremes of
  inequality
• The people (government) owns major sectors of
  the economy.
• ie Major manufacturing/industry, public services
  (transportation, water, power, etc)
• Private ownership is banned (makes you unequal)
• Govt makes decisions for society to keep
  everyone equal (Big Brother)
• Provides most services for people so everyone has
  them
• Different levels of socialism
• Entire government is socialized
• China, Cuba, USSR
• Some systems in non-socialist govts can be
  socialized
• US Social Security, education
• Canada, France, Sweden Health care

Usually CommunistUsually a dictatorship
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Communism
Capitalism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy
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Capitalism
Communism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism

• --

• ---

• --

Things common to both Capitalism and Democracy
Things common to both Communism and Socialism

• --

• --

• --

• --

• --

Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy
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Economic Terms

• Currency

Arabic Countries
Dinar
Australia
Dollar

China
Renminbi

Europe
Euro

Rp
India
Rupee
Japan
Yen

Mexico
Peso
or Mex
UK
Pound

US
Dollar

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• Recession
• A minor/short-term slow-down of the economy
• Caused by inflation, drop in stock market, high
  unemployment, outside shock (war, spike in price
  of oil, etc.)
• Depression
• A severe or long-term slow-down of the economy
• Can take years to recover

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• Inflation
• When the price of goods increase
• Measured by comparing what a set number of
  products cost over time.
• Causes
• Drop in supply of major goods
• Too much currency in the system
• Effects
• People cannot afford what they used to
• Unemployment increases
• Economic recession or depression
• Value of currency plummets
• Savings and currency lose value

US -1.48
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Measuring Comparing Economies

• GNP (Gross National Product)
• Total value of goods produced by a nation both
  inside and outside the country (by companies who
  are based there)
• US gets all credit for all US-based companies,
  despite where the stuff is actually made
• Used to indicate the overall wealth of a nation
• GDP (Gross Domestic Product)
• Total value produced inside a country (by any
  company producing items in that country)
• US gets credit for all stuff made in US, despite
  where its based
• Used to indicate the productivity of a nation
• GDP per capita Total GDP population
• Used to compare countries fairly evens out
  population

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• Example
• Bottling plants in US, Mexico, France and India
• US GNP counts
• US GDP counts
• Frances GDP counts
• Other ways to economically compare nations
• Industrialization ? Infrastructure
• Literacy rate ? Telecommunications
• Workforce usage ? Poverty line/unemployment rate
• You can tell how well off a country is by what
  these categories look like for the country

All of the Coca-Cola produced worldwide
All of the Coca-Cola produced in US
All of the Coke produced in France
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GNP (Worlds Top 10 2007)

• World 52,621,403,000,000
• 1 United States 13,886,000,000,000
• 2 Japan 4,813,341,000,000
• 3 Germany 3,197,029,000,000
• 4 China 3,120,891,000,000
• 5 United Kingdom 2,608,513,000,000
• 6 France 2,447,090,000,000
• 7 Italy 1,991,284,000,000
• 8 Spain 1,321,756,000,000
• 9 Canada 1,300,025,000,000
• 10 Brazil 1,133,030,000,000

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GDP (Worlds Top 10 2007)

• World 54,311,608,000,000
• 1 European Union 16,830,100,000,000
• 2 United States 13,843,825,000,000
• 3 Japan 4,383,762,000,000
• 4 Germany 3,322,147,000,000
• 5 China 3,250,827,000,000
• 6 United Kingdom 2,772,570,000,000
• 7 France 2,560,255,000,000
• 8 Italy 2,104,666,000,000
• 9 Spain 1,438,959,000,000
• 10 Canada 1,432,140,000,000

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GDP Per Capita (Top 15 2007)

• 1 Luxembourg 104,673
• 2 Norway 83,922
• 3 Qatar 72,849
• 4 Iceland 63,830
• 5 Ireland 59,924
• 6 Switzerland 58,084
• 7 Denmark 57,261
• 8 Sweden 49,655

• 9 Finland 46,602
• 10 Netherlands 46,261
• 11 United States 45,845
• 12 United Kingdom 45,575
• 13 Austria 45,181
• 14 Canada 43,485
• 15 Australia 43,312

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GDP Per Capita (Bottom 10)

• 170 Sierra Leone 290
• 171 Eritrea 281
• 172 Malawi 264
• 173 Ethiopia 252
• 174 Myanmar 235
• 175 Guinea-Bissau 206
• 176 Liberia 195
• 177 Congo, (DRC) 166
• 178 Burundi 128
• 179 Zimbabwe 55

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Communism
Capitalism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism
Prices set by market Supply and Demand Works with
Democracy Free Enterprise
Get rid of classes Needs Socialist govt Never
works practically Solution to Capitalism Govt
runs the market
Economic systems
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Goal freedom Works together People run
everything Private business allowed
Goal equality Private business
banned Corruption Paid for through taxes
Citizens vote for govt Western style
govt Free elections Direct vs. Indirect
Often a dictatorship Provides services to
people Govt makes decisions Works with Communism
Political Systems Dont need Communism
Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy
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Capitalism
Communism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism
Private businessSupply and DemandMarket/business
es makes decisionsFreedom of choicesCreates
classesWorks w/ demcy
Govt runs economyPeople forced to stayDoesnt
work on lg scaleKarl MarxLimited freedomsWorks
w/ Socialism
Economic systems
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Work togetherFree choicesClasses allowedPeople
run it all
Goal is equality
Voting for govtPeople run the govtDirect vs.
Indirect
Dont need CommunismProvides services to
peopleGovt pays for stuffHigher taxes to pay
for stuff
Political systems Dont need Communism
Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy
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Capitalism
Communism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism
Free MarketPrivate ownershipPeople decide
everythingSupply and DemandFree choice -
economically
Karl MarxSolution to CapitalismNo private
businessGovt controls economyNeeds Socialism
to workUsually needs dictator
Economic systemsNeed taxes
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
People power
Goal is to make everyone equal
People decide votingCitizen control govtFree
electionsDirect vs. IndirectPower is spread
outWestern Style Govt
Govt owns everything (no private)Govt decides
everythingSystems are nationalizedNo private
ownership of prop.Taxes pay for everything
Political systems
Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy
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Capitalism
Communism
Things common to both Communism and Capitalism
Things unique to Capitalism
Things unique to Communism
Market decides thingsSupply and DemandWorks
with DemocracyPrivate businesses!!!!!Free
Market
Govt owns businessGovt controls
economyImpractical in large scaleNo private
businessGovt decides everythingSolution to
capitalismForced to stay in country
Economic Systems
Things common to both Capitalism and Democracy
Things common to both Communism and Socialism
Free choicesPeople decide stuffLess govt
controlFree to leave
Goal is equality
Free voting/electionsCitizens control govtMore
rightsPeople have a sayDirect vs.
IndirectWestern Style GovtMost used type of
govt
Not as forcefulGovt owns propertyGovt
provides everythingGovt decides everything
politically100 dicatorshipTaxes pay for
everything
Taxes finance thingsPolitical systems
Things common to both Socialism and Democracy
Things unique to Democracy
Things unique to Socialism
Socialism
Democracy