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ECONOMIC UNDERSTANDINGS
Factors that Influence Economic Growth;
Natural Resources & Entrepreneurship
(India, China, and Japan)
Standard SS7E10:
Standard SS7E10:
The student will describe factors that
influence economic growth and examine
their presence or absence in India, China,
and Japan.
a. Explain the relationship between
investment in human capital (education
and training) and GDP.
Standard SS7E10: (cont.)
b. Explain the relationship between
investment in capital (factories,
machinery, and technology) and GDP.
c. Describe the role of natural
resources in a country’s economy.
Standard SS7E10: (cont.)
d. Describe the role of
entrepreneurship.
Agenda Message: CDA-IV is scheduled for next Thursday March 30th
(covering Governments, Economies, Specialization, Trade Barriers,
Factors that Influence Economic Growth , and finally Air & Water
Pollution).
Standard: Explain the relationship between investment in Human
Capital (education and training of workers) and in Capital (factories,
machinery, technology, roads, etc.) to GDP.
Essential Question for Tuesday, March 21st: What are the Four Factors
that Influence Economic Growth?
Warm-up: Why is specialization important to trade between countries?
Today We Will:
1.
Pop-Quiz on Governments of S&EA
2.
Start Factors that Influence Economic Growth
E.Q. Answer for Tuesday March 21st:
 Human Capital; (Education & Training of workers)
 Capital; (Factories, machinery, technology, roads)
 Natural Resources; (raw materials, minerals, forests,
etc.)
 Entrepreneurs; (people who take the risks to
manufacture new products or services)
Warm-up Answer:
Specialization is where countries produce those things that
they make best and trade with other countries for the
things they need.
Agenda Message: Social Studies Progress Reports go home today for 3rd
thru 6rh Periods. CDA-IV is this Friday. Before School Tutoring is
Tues. at 7:30a.
Standard: Describe the role of Natural Resources (minerals and other
resources that come from the earth) and Entrepreneurship
(individuals with new ideas who take the risk of starting new
businesses) in a country’s economy.
Essential Question: Monday March 10th: How does investment in
Capital affect GDP?
Warm-up: Name the four factors that influence economic growth.
Today We Will:
1.
Complete Factors that Influence Economic Growth
2.
Start Air & Water Pollution
E.Q. Answer for Monday March 10th:
Investment in new factories, machinery,
technology, electrical systems, roads, airports,
highways and train stations allow for workers and
companies to produce products more efficiently,
thereby increasing GDP.
Warm-up Answer:
Human Capital
Capital
Natural Resources
Entrepreneurs
What Influences Economic Growth?
There are four factors that influence economic
growth in every country causing;
1.
2.
Gross Domestic Product (GDP) to rise, as well as
the Standard of Living
The four factors are;
1. Human Capital (people who perform
labor),
2. Capital (factories, machinery, and
technology),
3. Natural Resources (raw materials that
come from the land like minerals), and
4. Entrepreneurship (the ideas and risk
involved in starting a business).
Natural Resources Rule
Natural resources have a very important
role in any country’s economy. They are
the fuel for industry and a source of
income when exported to other countries.
China
The massive country of China has many
natural resources including coal, iron ore,
petroleum, and natural gas.
Although most of China’s land cannot be
farmed, the country’s abundant land and
rivers provide a solid foundation for
China’s industry and economic growth.
India
India’s fertile land and ample water supply
are its most valuable resources. About
half of India’s land can be farmed and its
most important crops are rice and wheat.
India also has large coal reserves and
abundant forests. These natural
resources provide India’s economy with a
solid foundation for growth.
Japan
In contrast, Japan has little farmland and
few natural resources. Japan imports the
raw materials it needs for industry and
quality products for export through its
strong manufacturing industries.
Japan has used its educated workforce and
capital investment to overcome its lack of
natural resources.
Keep Those Ideas Coming!
Entrepreneurs have a vital role to play in
economic growth. They are the people
with new ideas for new products and
services, and they use human capital,
capital, and natural resources to bring
ideas to the marketplace.
Entrepreneurs must be willing to take risks,
and often share risks with others by
borrowing money from a bank or wealthy
investor to get their ideas started.
Entrepreneurs are valuable because they
introduce innovation and help economies
adapt to the changing conditions in our world
today.
The rapid pace of growth and the huge
population in Asian countries offer
excellent opportunities for entrepreneurs.
Entrepreneurship is rising dramatically in
India and China. India has a particularly
high rate of business owners with training
and facilities, especially in rural areas.
In China, private business is the fastest
growing segment of the economy. China’s
government helps fund small business
development and welcomes investment
from foreign countries.
In contrast, Japan has one of the lowest
rates of entrepreneurship among the
world’s leading economic powers.
Japanese entrepreneurs face difficulties in
getting loans from banks and there is
little training available on how to run a
business.
In addition, Japanese companies typically
guarantee lifetime employment to their
employees. The Japanese like this job
security.
They also take great pride in their position
in a company and often view
entrepreneurship as a risky job choice.