The Economies of Asia

1
The Economies of Asia
2
Traditional Economy

• Needs are fulfilled in the same way as their
  ancestors.

3
Command Economy
The government determines what will be produced,
how it will be produced and who it will be
produced for in society.
4
Market Economy

• Individual businesses make their own decisions
  about what to produce and how to produce it
  without government regulations.

5
Mixed Economies

• Communist The government produces all of the
  consumers needs and wants.
• Socialist The government produces the consumers
  needs and private businesses produce the wants.
• Capitalist Private businesses produce most
  basic needs and wants with some government
  regulations.

6
Economic Systems

• Pure
• Command

Pure Market
Mixed Economy
7
Economic Systems

• Israel
• 68

• Saudi Arabia
• 64

• Iran
• 45

100
0

• Pure
• Market

Pure Command
Mixed Economy
8
Economic Systems

• South Africa
• 64

• Nigeria
• 55

100
0

• Pure
• Market

Pure Command
Mixed Economy
9
Economic Systems

• Japan
• 73

• India
• 54

• China
• 53

• North Korea
• 2

100
0

• Pure
• Market

Pure Command
Mixed Economy
10
Indias EconomyMixed Economy

• It is a mixture of the traditional and the
  modern.
• In villages, farmers still work in the fields.
• There are also modern factories and high-tech
  service industries.
• Almost 60 of Indias workforce are farmers who
  grow barely enough to feed their families.
• Indias leading crops are rice, wheat, cotton,
  and tea.
• India is still considered a developing country.

11
Indias Economy, Contd

• Its economy is large enough to rank among the
  worlds top 10 industrial countries.
• Some Indians are very rich, but most are still
  poor.
• Booming electronics industry, producing
  computers, software, televisions, CD players,
  VCRs, launched several communications satellites
  systems and leads the region in a number of
  related fields.
• Bollywood films are as popular in Southern and
  Eastern Asia as are films in U.S.

12
Chinas Economy

• When the Chinese Communists took over in 1949,
  they set up a nearly pure command economy.
• The Communists took over an economy that was
  almost solely based on farming.
• Today, China produces everything from satellites
  to rockets to toys.

13
Chinas Economy, Contd

• In the late 1970s, the govt introduced elements
  of free enterprise.
• Now, farmers can grow and market their own crops
  on part of their rented land.
• Millions of Chinese have started their own small
  businesses.

14
Japans Economy

• Japan has few natural resources, so it must
  import many raw materials to run its industries.
• The country produces about 1/3 of its energy
  through nuclear power.
• Japan has the worlds largest fishing industry.
• Fish is a major part of the Japanese diet.

15
Japans Economy, Contd

• Japan is known for its high-quality cars and
  items like TVs, cameras, and CD players.
• Their economic success is due partly b/c of a
  high literacy rate and partly b/c of the peoples
  strong work ethic.
• Japans market economy depends on trade,
  especially with countries in the Pacific Rim.

16
North Koreas Economy

• This is one of the world's most centrally
  directed and least open economies.
• The central government plans the economy,
  controls whats produced, owns all land and
  housing, and controls access to jobs.
• Only 14 of North Koreas land can be farmed.
• Its farmed by cooperatives-groups of farmers who
  work the land together.
• Some people grow food for themselves in small
  gardens.

17
North Koreas Economy, Contd

• North Korea doesnt produce enough food to feed
  its people and historically imported needed food
  from the Soviet Union. When it collapsed it lost
  its main source of food and has faced famine at
  times.
• Poor harvests in the mid 90s made things worse,
  famine ensued, and thousands starved to death.

• North Korea is rich in mineral resources.
• They make machinery, iron, and steel, but their
  factories use outdated technology.
• The government has invested in nuclear power
  plants.

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Gross Domestic Product (GDP)Market value of all
final goods and services produced in a country in
a year (Final goods and services have been
purchased for final use. They are not for resale
or further manufacture)
C I N G
Consumption Spending by households on goods and services, including spending on such things as cars, food and visits to the dentist. This makes up 2/3 of the GDP spending. Investment Spending on business machinery, factories, equipment, tools and the construction of new buildings. Net Exports Net exports are calculated (x-m) where x is exports and m is imports. Spending by people not living in the US on goods and services made in the US Minus Spending by people in the US on foreign goods and services. Government Spending on all levels of government on goods and services, including spending on the military, schools and highways.
GM cars, Coca Cola
minus
Call center service
The sum of CING is GDP
19
Factors that influence GDP (make it go up and
down)

• Investment in physical and human capital
• New Jobs / New Factories
• Incentives to save, invest and increase
  productivity
• Government / Employer
• Low Inflation
• Economic condition in which prices of goods and
  services increase
• Gas Prices, Grocery prices go up!
• Political Stability
• Economic Freedom
• Free Trade