How Can The Size Of The Industrial/service Sector And The

Students research the economic systems of a communist country and a third-globe country and compare them to the United states of america, guided by questions and using information from the CIA Globe Factbook website.

Introduction

What would life be like in the Northward Korean economy? How would things be unlike in the economic system of Republic of chad? In this lesson, you volition have the opportunity to compare these two economies to the U.S. economy, and you'll practice using some tools that tin assistance you to report any economy in the earth.

Learning Objectives

Define market economies, command economies, and developing economies.
Compare one land with another by reference to factors associated with economic performance.

Resources List

CIA Factbook: The CIA updates its World Factbook website annually. Data are included for every country in the world, as well equally several territories of other nations. Students volition use this website to fill out their Comparative Organisation Worksheets.
world wide web.cia.gov/library/publications/the-world-factbook/index.html

Comparative Systems Worksheet : Click on the link and print the chart, to fill in the information from each of the countries.
Comparative Systems Worksheet

Process

Germany Outset nosotros need to take a moment to wait at how economists categorize economies. A market economy is characterized by private ownership of the means of production (for example, farms and factories), and supply and demand are responsible for the toll and allocation decisions. The U.s., Hong Kong, and Deutschland are considered marketplace economies. A command economy is characterized by government (or central) control ownership of the ways of production, and with a central authority setting prices of goods and services and for most allotment decisions. North Korea and Republic of cuba are command, or more than specifically communist, economies. A developing economy is ane which is not yet industrialized, but is developing. Chad, Republic of ecuador, and Bangladesh are considered developing nations.

In this lesson, you will compare several aspects of the economies of the United states of america (representing a market-oriented economic system), N Korea (representing a control economy), and Chad (representing a developing economy). Print the Comparative Systems Worksheet. Go to the CIA Globe Factbook website to discover the information needed to complete the chart.

Utilize the information from the worksheet to consider the following seven questions.

View Interactive Activity

How tin can the presence or absence of natural resources and arable state bear on a nation'south economic system, regardless of the blazon of economic system? [If a country has few natural resources and lilliputian land available for crops, it may not be able to produce enough food and products for the people.]
How can life expectancy and literacy rates touch the quality of labor in the economy? [A shorter life expectancy may point poor medical care, and lower literacy rates may indicate poor education, both of which can have negative impacts on production.]
How tin can fertility rates affect the use of scarce resources? [High fertility rates, peculiarly in countries with few natural resource and lower GDPs, may indicate serious strains on scarce resource.]
How can GDP per capita and poverty rates indicate standards of living in each organization? [They can signal standards of living in each system because Gdp per capita is generally lower, and poverty rates are generally college, in countries with lower standards of living.]
How tin the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?[A larger industrial and service sector, and a larger number of people working exterior of agriculture, tin indicate a higher level of industrialization in the economy.]
How can electricity, communication, and transportation facilities betoken the potential for industrial growth? [Greater electrical generation capacity, greater use of telephones and the Internet, and a greater availability of transportation via rail, highway, and airline can indicate a greater potential for increased industrialization.]
Considering the lack of natural resources, the labor problems, and the lack of capital and lilliputian industrialization of developing countries, how tin developing countries develop? (Hint: Wait at Economy – Overview for Chad). [Developing countries can develop past infusion of funds and capital from other nations, the World Bank, the International Budgetary Fund, and regional and humanitarian organizations.]

Conclusion

Market-oriented and control nations tend to identify different priorities on the function of government in the economy, with the authorities sector by and large playing a larger role in command nations. Given their resources, marketplace-oriented and command nations tin choose to focus on increased industrialization and expansion into new markets. Developing nations, however, often lack resources necessary for industrialization and must seek aid or investment from industrialized economies in order to grow. With increased globalization, we are becoming more than acutely aware of the interdependence of all nations in our world economic system.

Assessment

At present that y'all accept studied the economic characteristics of these iii countries, define the terms market-oriented, control, and developing economy in your own words. For each term, describe the specific characteristics of the countries you lot studied that would help to support your definition. [Market economies rely on private ownership of the means of production and supply and demand to determine prices and output. The Us meets this definition, indicated past a lower amount of government and military spending as a per centum of GDP than North Korea does. Command economies feature government ownership of the means of production, and centralized planning of the economy. Democratic people's republic of korea fits this definition with its high government and military spending as a percentage of Gdp and its all-encompassing apply of government boards to determine economic product. 3rd earth economies are not yet industrialized, but are developing. Republic of chad is an example of this definition, characterized by low Gdp, high poverty, little industrial employment, and poor energy, advice, and transportation systems.]

Try this aforementioned exercise, comparing the economic systems of nations large and small, industrialized and developing, well-known and little-known. Consider looking at the differences in the former Soviet republics and Eastern Europe, which are converting from control to socialist or marketplace-oriented systems.

Set a grid similar to that on the Comparative Systems Worksheet, illustrating the nigh important points of comparison between the nations you have selected to study.