Download 6 Countries and Their Economic Systems

Command Economy: Economic system in which the government makes
decisions about what to produce
Mixed Economy: Economic system in which both government and
individuals play important roles in the economy about what to produce
Market Economy: Economic System where individuals and businesses
make most decisions about what to produce
***Gross Domestic Product***: is a measure of average income per
person in the country
(ADD THIS TO YOUR VOCAB FROM YESTERDAY!!!)
Australia
-world’s smallest continent
-world’s largest country
-one of world’s richest countries
Major Industries:
-banking (banks are privately owned)
-government rules about banking are minimal, however the government
does not allow the 4 major banks to merge (combine together) which allows
the banks to compete fairly for business
Production of Goods & Services:
-agriculture, manufacturing, and mining
-government protects the rights of people to own private property which
encourages people to build profitable businesses
Distribution of Goods & Services:
-businesses are easy to start
-government does not have many laws that limit what businesses may do they can produce whatever they want, in any amount, and sell to whomever
they want
-many things for consumers to choose from and foreign companies can sell
goods and services there too
Government Policies:
-high taxes but they are used to fund colleges and hospitals
Economic Development:
-GDP (Gross Domestic Product) is $41, 300 per capita (one of the most
developed countries in the world).
AUSTRALIA HAS A MIXED ECONOMIC SYSTEM!!!!
BRAZIL
-largest and most populous country in South America
Major Industries:
-agriculture (world’s largest exporter of coffee and oranges)
-industry (leading producer of minerals - gold and iron & consumer goods electronics and cars)
-growing service industry (waiters, teachers, mechanics, doctors, and
bankers)
Production of Goods & Services:
-government owns banks that control about 40% of wealth in Brazil
Distribution of Goods & Services:
-buy and sell wide variety of consumer goods
-prices are set by supply and demand
-most public services (phone service and electricity) are provided by private
companies and the government reviews prices of these services to make
sure that they are fair
-government controls prices of fuel & airfare
Government Policies:
-inefficient court system limits business success (things take years in court
to resolve and there is corruption in the system with politicians and
business owners)
Economic Development:
-GDP: $10,700 per capita - wealth is not equally distributed in Brazil - about
10% of the population earns half the countries income
BRAZIL IS A MARKET ECONOMIC SYSTEM!!!!
CHINA
-largest population of any country in the world
-ruled by Chinese Communist Party (CCP)
Major Industries:
-vast natural resources
-large labor supply (largest producers of clothing, coal and oil (leading exporter of
manufactured goods)
-agriculture - world’s largest producer of rice
Production of Goods & Services:
-CCP makes all economic decisions -- they have relaxed some control and have
allowed farmers to grow and sell their own crops and some private businesses
are allowed to compete with state owned industry
Distribution of Goods & Services:
-market determines price of most products
-CCP still sets prices for all “essential” products (agricultural products, energy
and medical care)
-government provides money to state-owned businesses and that allows them to
lower their prices and compete unfairly against private businesses
Government Policies:
-Shanghai is the world’s busiest port - government still must approve all foreign
money and business entering country
-corruption holds back economic development due to local officials ignoring laws,
local businesses favored over foreign ones, courts are influenced by politicians,
powerful individuals, and companies
Economic Development:
-GDP is $7,400 - low compared to other developed countries but high
considering the population and level of government control
CHINA IS A COMMAND ECONOMIC SYSTEM!!!
FRANCE
-One of the world’s oldest nations
-plays an important role in international affairs
Major Industries:
-service industries (tourism) are very important to their economy - more than 75
million people visit there each year
-agriculture is also important - they export products such as cheese, fruits and
vegetables
Production of Goods and Services:
-government controls certain important industries like transportation, electricity &
postal services
-government makes labor laws to protect workers but can make businesses less
competitive
-most businesses are privately owned - they can decide what and how much of
their product to make - and they base their decisions on demands of the market
Distribution of Goods and Service:
-most prices of products are set by the market
-government does set some prices helping to keep food cost low and giving
money to farmers - they also help to regulate the cost of health care, books,
electricity, and gas
Government Policies:
-government tries to maintain social equality through high taxes & high spending
on social programs - taxes on business are also higher
-however, citizens do receive many benefits for paying high taxes - they get
health care, higher education, & money to live on when they retire (must work
until age 60)
Economic Developement:
-one of the wealthiest nations in the world with a GDP per capita of $33,300.
FRANCE IS A MIXED ECONOMY!!!!
NORTH KOREA
-Communist nation
Major Industries:
-government plans and controls all economic development - this leads to a strong
military but few goods for consumers
-military products, machine building, chemicals, and mining
-agriculture is also important
Production of Goods and Services:
-government owns all the factories - decides what types of goods will be
produced & how much
-state owned farms grow rice, corn, barley and vegetables
Distribution of Goods and Services:
-shortages of basic goods including food - leaving citizens to depend on the
government to ration out small amounts of food
-poor government planning
Government Policies:
-government controls all imports and exports
-money to start new businesses is generally unavailable - so government must
buy goods from other countries (like fuel, tractors, and food) - most comes from
China or South Korea
Economic Development:
-people suffer from lack of food and poor living conditions
-GDP per capita is $1,800 - one of the lowest in the world
NORTH KOREA IS A COMMAND ECONOMIC SYSTEM!!!!
UNITED STATES
-has the world’s largest economy with only 5% of the world’s population
-US makes up about 20% of world’s economy
Major Industries:
-service industry - doctors, lawyers, teachers, accountants, salespeople
-US is still the largest producer of manufactured goods
-cars, computers, food products, and machinery are major manufacturing
industries
Production of Goods and Service:
-property rights and business freedom are highly valued
-right to own private property and start businesses where they can decide what to
produce and who to hire
Distribution of Goods and Services:
-consumers can make their own decisions about what to buy
-companies compete to win customers and make profits - which results in better
goods and services
-prices are set by supply and demand
-sometimes prices can be limited by the government such as farm products to
help farmers and rent amounts
Government Policies:
-government spending is high - through tax dollars the government pays for
defense, education, health care for senior citizens and retirement money
Economic Development:
-US has the highest GDP of any individual nation in the world at $47,400 per
capita.
UNITED STATES IS A MIXED ECONOMIC SYSTEM!!!!