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China
 (1) What to produce?




40% of the Chinese economy is still based in
state-run industries.
60% of the economy i...
China
 (2) How to produce?




The many inefficiencies found in the state-run
industries, particularly in the area of
a...
China


(3) For whom to produce?




China requires food production to meet selfsufficiency level for the nation and on...
Placed on the Continuum: China is slightly on the market side of center.
India
 (1) What to produce?






Since 1991, India has slowly allowed the
markets to open up to private sector domest...
India
 (2) How to produce?






India is increasing its oversight of intellectual
and private property rights, but le...
India
 (3) For whom to produce?




Food production is largely for domestic
consumers with many citizens producing food...
Place on the continuum: India would be more to the market side of the continuum than
China.
Japan
(1)

What to produce?




Japan’s economy is primarily market driven
with supply and demand determining what
will ...
Japan
 (2) How to produce?


Private businesses determine their own
production processes in most of the economy.
Japan
 For whom to produce?




Japan’s population enjoys a high standard of
living and creates a strong domestic marke...
Out of all four countries in this element, Japan would be the closest to the market side
Of the continuum.
North Korea


(1) What to produce?






Although there have been some small market reforms
recently, the majority of ...
North Korea
 For whom to produce?




Approximately one fourth of all domestic
output is devoted to maintaining the mil...
 Placed on the continuum:

North Korea
would be much more to the command side
of the continuum than any of the other
nati...
South and East Asian Economies
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South and East Asian Economies

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South and East Asian Economies

  1. 1. China  (1) What to produce?   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 the production decisions.
  2. 2. China  (2) How to produce?   The many inefficiencies found in the state-run industries, particularly in the area of agriculture, limit China’s growth. In the private market, the speed of economic growth has caused Chinese officials to have increasing difficulty monitoring consumer safety and environmental pollution.
  3. 3. China  (3) For whom to produce?   China requires food production to meet selfsufficiency level for the nation and only the surplus may be exported. In reality, there is not enough proper storage of food to meet the self-sufficiency requirement. China exports a large amount of manufactured goods. However, the expanding middle class in China is seen as a growth market for both Chinese and foreign companies.
  4. 4. Placed on the Continuum: China is slightly on the market side of center.
  5. 5. India  (1) What to produce?    Since 1991, India has slowly allowed the markets to open up to private sector domestic and foreign businesses. The majority of the population relies on subsistence agriculture as a means of survival. There is a lot of bureaucracy and corruption involved in setting up and operating a business.
  6. 6. India  (2) How to produce?    India is increasing its oversight of intellectual and private property rights, but legal challenges are fraught with bureaucracy. India has an increasingly educated workforce particularly in areas of engineering and computer science. A complex, corrupt, and hefty tax system can sometimes make operating a business in India difficult.
  7. 7. India  (3) For whom to produce?   Food production is largely for domestic consumers with many citizens producing food mainly for their own family consumption. The software and business process outsourcing and industries are rapidly expanding export markets for private Indian companies.
  8. 8. Place on the continuum: India would be more to the market side of the continuum than China.
  9. 9. Japan (1) What to produce?   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.
  10. 10. Japan  (2) How to produce?  Private businesses determine their own production processes in most of the economy.
  11. 11. Japan  For whom to produce?   Japan’s population enjoys a high standard of living and creates a strong domestic market for goods and services. The efficiency of Japan’s production and its reputation for quality products/services has made it a major exporter.
  12. 12. Out of all four countries in this element, Japan would be the closest to the market side Of the continuum.
  13. 13. North Korea  (1) What to produce?    Although there have been some small market reforms recently, the majority of legal economic activities are centrally controlled by the government. Due to natural disaster and inefficient government-run industries, North Korea is a major recipient of food and basic service aid from Non-Governmental Organizations (NGO) and foreign nations. The U.S. provides the people of North Korea with a large amount of aid. Like in many highly centralized economies, there is a large underground economy that runs on a more market based system.
  14. 14. North Korea  For whom to produce?   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. North Korea produces natural resources and manufactured goods for export.
  15. 15.  Placed 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.

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