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Economies Around the World
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Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Jan 03, 2016

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George Little
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Page 1: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Economies Around the World

Page 2: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Just as governments can be classified into different kinds….

• …the economies of the world can also be classified, based on industries.

Page 3: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Industry

• An industry is all the businesses that make one kind of product or provide one kind of service.

Examples: • Energy/Power Industry• Health Care Industry• Agriculture Industry

Page 4: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

4 Main Kinds of Industries

1. Primary2. Secondary3. Tertiary4. Quaternary

Page 5: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Primary Industry

• A primary industry provides natural resources.

• What is a natural resource?

Page 6: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Primary Industry

Examples:• Farming• Fishing• Logging• Mining

Page 7: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

1 Primary Industry 1• Brings natural resources to market.

• Usually the natural resources are the raw materials that a secondary industry uses to make goods.

Page 8: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

2 Secondary Industry 2• …turns a natural resource into a finished

product.

Examples:• Clothing factories use raw wool or cotton to

make clothing. • Refineries turn petroleum into gasoline.• Mills turn iron ore into steel.

Page 9: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

3 Tertiary Industry 3

• …sells and transports to market the natural

resources of _______________and the finished

products of ____________________.

Page 10: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Tertiary Industry

• Stores and trucking companies are examples of businesses in a tertiary industry.

• Tertiary industries provide not only goods but also services.

Page 11: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Tertiary Industry

Examples of services:• Banking• Education• Health care

Page 12: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

4 Quaternary Industry 4• …involves research, information gathering, or business management.

Examples:• Scientists• Accountants• Architects• Lawyers• Engineers

Page 13: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Wait a minute…

• Don’t scientists, lawyers, architects, accountants, and engineers provide a service too?

Page 14: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Yes!

• Since they provide a service and information gathering, they are considered a part of the tertiary industry and quaternary industry.

Page 15: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• What industry is a nurse in?

• Tertiary

Page 16: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• What industry is the shipping business?

• Tertiary

Page 17: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• What industry is farming in?

• Primary

Page 18: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• What industry is an accountant in?

• Tertiary and Quaternary

Page 19: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• What industry is a clothing manufacturer in?

• Secondary

Page 20: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

“Developed or Developing?”

• The kinds of industries in a country can often determine whether the country is developed or developing.

• Countries that have well-established economies, generally with all four kinds of industries are called developed countries.

Page 21: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Developing Countries

• Countries whose economics are still being built are called developing countries.

• They generally have fewer kinds of industries.

Page 22: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

GDP

• Developed countries have more kinds of industries, they produce more goods and services than developing one do.

• One measure of the total value of goods and services a country produces is its GDP, or gross domestic product.

Page 23: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

GDP

• The GDP of developed countries is higher than the GDP of developing ones.

• Developed countries with a high GDP include the United States, whose GDP is more than 9 trillion dollars.

• The Caribbean country of Dominica, which is developing, has a GDP of just about 225 million dollars.

• The US GDP is 40,000 times larger than Dominica.

Page 24: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

• http://www.google.com/imgres?hl=en&sa=X&tbo=d&rlz=1G1GGLQ_ENUS251&biw=1366&bih=649&tbm=isch&tbnid=ih1D1XGXG0KiHM:&imgrefurl=http://www.econguru.com/2007-gdp-nominal-per-capita-world-map-imf/&docid=M9VxBh1rVIoKMM&imgurl=http://www.econguru.com/wp-content/uploads/2008/10/gdp_nominal_per_capita_world_map_imf_2007.PNG&w=1350&h=625&ei=lrSfUPuAD8Xg2QW_lIGgDQ&zoom=1&iact=hc&vpx=176&vpy=209&dur=456&hovh=153&hovw=330&tx=207&ty=68&sig=106373214429270444058&page=1&tbnh=130&tbnw=280&start=0&ndsp=18&ved=1t:429,r:1,s:0,i:157

Page 25: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

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Page 26: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Measure of a country’s economy

• 1. GDP: Gross Domestic Product

• 2. Standard of Living – how well its people live

Page 27: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Standard of Living

• How well a country’s people live. The standard of living can be indicated by the average person’s income and purchasing power, or spending.

• How much money do you have left after spending for basic needs?

Page 28: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• How are economies around the world measured?

• By the country’s GDP and by the standard of living of the people.

Page 29: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Economic Systems

• Each country has an economic system or a way to make decisions about how to use its resources. (Examples: fish, trees, oil, coal, etc.)

Page 30: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Three Main Kinds of Economic Systems in the world today:

1. Traditional economy – shows little change over the years. People do the same kinds of work as people did in earlier times.

Page 31: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Traditional Economy

• Economic decisions are based on custom or habit.

• What have they always done?

• Most people in a traditional economy practice subsistence farming, raising only enough food for themselves and their families.

Page 32: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Subsistence farming

• If you only have enough food to feed yourself and your family, do you have enough to sell for money?

• Do you have money to buy new tools to improve your way of farming?

Page 33: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Subsistence Farming

• Since there is only enough food for survival, they must work as they always have.

• Traditional economies are found in many developing countries in Africa, Asia, and South America.

Page 34: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Three Main Kinds of Economic Systems in the world today:

2. Command Economy – the government or some central authority makes most of the economic decisions.

• Controls both farms and factories. • People and businesses are not free to make

their own decisions.

Page 35: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Command Economy

• The government determines what and how much will be produced.

• The government also decides how much the workers will earn and how much the goods and services will cost.

Page 36: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Command Economy

• This economic system, command economy, often leads to less than enough or too much of different products.

• The island country of Cuba in the Caribbean has one of the few remaining command economies in the world.

Page 37: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

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Page 38: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Three Main Kinds of Economic Systems in the world today:

3. Market Economy – the people own and control businesses.

• The people make their own choices about which goods and services they will buy or produce.

• The people decide how they will spend their money and what kind of work they will do.

Page 39: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Market Economy

• This freedom of individuals and businesses in a market economy is often called free enterprise.

• Many countries in the world with democratic governments, including the US, have market economies.

Page 40: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

• http://www.google.com/imgres?start=222&num=10&hl=en&tbo=d&rlz=1G1GGLQ_ENUS251&biw=1366&bih=649&tbm=isch&tbnid=fktKZPX7phZmwM:&imgrefurl=http://en.wikipedia.org/wiki/Deng_Xiaoping&docid=yrnNz8oQB_DLlM&imgurl=http://upload.wikimedia.org/wikipedia/commons/thumb/b/b3/Prc1952-2005gdp.gif/450px-Prc1952-2005gdp.gif&w=450&h=270&ei=GUKgUO3DJqOq2gWajIHIAg&zoom=1&iact=hc&vpx=7&vpy=84&dur=806&hovh=174&hovw=290&tx=208&ty=79&sig=106373214429270444058&page=9&tbnh=158&tbnw=263&ndsp=29&ved=1t:429,r:35,s:200,i:109

Page 41: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Canada

• Some democracies, like Canada, have a mix of market economy and command economy.

• Canada’s government has control over many parts of the country’s economy.

• Canada’s government controls major industries, such as broadcasting and health care.

Page 42: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Review

• How do democracies and market economies affect how people live?

Page 43: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

• How do democracies and market economies affect how people live?

• Answer: People can choose their leaders and make decisions about how to spend their money.

Page 44: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Question 2

• How would your life be different if the government chose which products you could buy?

Page 45: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Answer

• How would your life be different if the government chose which products you could buy?

• Answer: Some items might not be available.

Page 46: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Question 3

• What is the difference between the economy of a developed country and the economy of a developing country?

Page 47: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Answer

• What is the difference between the economy of a developed country and the economy of a developing country?

• Developed countries (like the US) have a variety of industries.

• Developing countries have fewer industries.

Page 48: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Question 4

• What are the four kinds of industries? Give an example of each?

Page 49: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Answer

• Primary - farming• Secondary – clothing manufacturing• Tertiary- selling or transporting goods/services• Quaternary – scientist, architect

Page 50: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Question 5

• What kind of economy is usually found in democratic countries?

Page 51: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Answer

• What kind of economy is usually found in democratic countries?

• Answer: Market Economy

Page 52: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Question

• What are some benefits of free enterprise that are not found in a command economy?

Page 53: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Answer

• What are some benefits of free enterprise that are not found in a command economy?

• Answer: There are a greater variety of goods available to choose from.

Page 54: Economies Around the World. Just as governments can be classified into different kinds…. …the economies of the world can also be classified, based on.

Kinds of economy