Download SS7E8c: Compare and contrast the economic systems in China

SS7E8c: Compare and
contrast the
economic systems in
China, India, Japan,
and North Korea.
 40 % of the Chinese
economy is still based in
state-run industries
 60% of the economy is
based on the private sector
in where producers and
consumers make
production decisions
 Communist govt has final
say in all economic matters
 Mao Zedong’s Great Leap
Forward failed and China
has since began giving
citizens more economic
freedom (becoming more
market oriented)
Place on the continuum: China is slightly on the
market side of center on the continuum.
 Govt controls basic
industries and
influences agriculture
and industry, but free
enterprise and
entrepreneurship are
common
 India has an increasingly
educated workforce
particularly in areas of
engineering and
computer science.
 Since 1991, India has
slowly allowed the
markets to open up to
private sector domestic
and foreign businesses.
Place on the continuum: India would be more to
the market side of the continuum than China.
 Huge investment in human and





capital resources
Very high literacy rate, GDP,
and per capita income
Japan has one of the most
developed economies in the
world
Japan’s economy is primarily
market driven with supply and
demand determining what will
be produced.
The few industries that are
highly government-controlled,
such as agriculture, have much
lower productivity rates than
those industries controlled by
market forces.
Private businesses determine
their own production processes
in most of the economy.
Place on the continuum: Out of all four
countries in this element, Japan would be the
closest to the market side of the continuum.
 Govt owns all land and
resources
 No entrepreneurship allowed
 Although there have been
some small market reforms
recently, the majority of legal
economic activities are
centrally controlled by the
government.
 Approximately one fourth of
all domestic output is
devoted to maintaining the
military. This severely limits
the amount of goods and
services that make it to the
rest of the people of North
Korea.
Place on the continuum: North Korea would
be much more to the command side of the
continuum than any of the other nations
discussed. One of the most command
economies in the world today.
SS7E10: The student will
describe factors that
influence economic
growth and examine their
presence or absence in
India, China, and Japan.
Natural Resources
Capital Resources
Human Resources
•Fertile farm land
•Tea, rice, wheat
•Gem stones, coal
•Coastal fishing
•Top 10 industrial
nation
•Improve farming
equipment and
irrigation during the
Green Revolution
(produce more crops
for growing
population)
•More factories and
machinery
•Communication and
computer technology
•Govt improved
farming and irrigation
techniques
•Improved investment
in education (in urban
areas)
•English as second
language helps workers
create computer
software products and
technical support
Natural
Resources
•Farmland along
rivers in eastern
China
•Rice and wheat
•Coal, iron ore,
and oil
•Coastal fishing
Capital
Resources
•Four
modernizations :
govt investment
in farming,
industry,
military, and
technology
production
•Leading exporter
of consumer
products
Human
Resources
•Access to
education in
urban areas
•Large
populations in
rural areas
remain poor and
undeveloped
Natural Resources
FEW NATURAL
RESOURCES
•Coastal fishing
•Must import most of
raw materials they
use to manufacture
products
Capital Resources
•Highly
industrialized
•Advanced
technologies
•Robotics
•Motor vehicle and
electronics
production
Human Resources
•Population is
Japan’s BEST
resource
•Highly educated,
trained, and skilled
workers
•Great work ethic
•Companies reinvest
money in their
workers to improve
efficiency,
production, morale