The document discusses the economies of several Asian countries. It describes India as having a mixed economy with both traditional and modern sectors. While most of India's workforce is in farming, it also has a large electronics and technology industry. China shifted from a purely command economy to one that incorporates some free market principles, allowing private businesses and farming. Japan has a market economy but must import raw materials, producing high-quality manufactured goods and relying on trade. North Korea has a centrally planned command economy with limited farming and outdated industry.

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 Pure
Market Command

7. ic
om
o n ms
Israel
Ec te 68%
S ys Saudi
Iran Arabia
45% 64%
Pure Pure
Command Market

8. ic
om
o n ms
South Africa
Ec te 64%
S ys Nigeria
55%
Pure Pure
Command Market

9. ic
om
o n ms
Japan
Ec te 73%
S ys China
India
North Korea 54%
53%
2%
Pure Pure
Command Market

10. India’s Economy
Mixed 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 India’s workforce
are farmers who grow barely
enough to feed their families.
• India’s leading crops are rice,
wheat, cotton, and tea.
• India is still considered a
developing country.

11. India’s Economy, Cont’d
• Its economy is large enough to
rank among the world’s top 10
industrial countries.
• Some Indians are very rich, but
most are still poor.
• Booming electronics industry,
producing computers, software,
televisions, CD players, VCR’s,
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. China’s 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. China’s Economy, Cont’d
• In the late 1970s, the
gov’t 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. Japan’s 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 world’s
largest fishing industry.
• Fish is a major part of the
Japanese diet.

15. Japan’s Economy, Cont’d
• 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.
• Japan’s market economy
depends on trade,
especially with countries
in the Pacific Rim.

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

17. North Korea’s Economy, Cont’d
• North Korea doesn’t
produce enough food to
feed its people and
historically imported
needed food from the
Soviet Union. When it • North Korea is rich in
collapsed it lost its main mineral resources.
source of food and has • They make machinery,
faced famine at times. iron, and steel, but their
• Poor harvests in the mid factories use outdated
90s made things worse, technology.
famine ensued, and • The government has
thousands starved to invested in nuclear power
death. plants.

18. 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 Investment Net Exports Government
Spending by households Spending on business Net exports are calculated (x-m) Spending on all levels of
where x is exports and m is imports.
on goods and services, machinery, factories, government on goods
Spending by people not
including spending on equipment, tools and the and services, including
living in the US on goods
such things as cars, food construction of new spending on the military,
and services made in the
and visits to the dentist. buildings. schools and highways.
US
This makes up 2/3 of the
GDP spending. Minus
Spending by people in the
US on foreign goods and
services.
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):
1) Investment in physical and human capital –
• New Jobs / New Factories
2) Incentives to save, invest and increase productivity
• Government / Employer
3) Low Inflation
• Economic condition in which prices of goods and services increase
• Gas Prices, Grocery prices go up!
4) Political Stability
5) Economic Freedom
6) Free Trade