Post on 17-Nov-2020
Economic Development
Traditional
Command
Market
Types of Economic Systems
Traditional Style
1. Subsistence farming – farming for family consumption
2. Barter and trade
3. Rural areas, low technology
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Cottage industries
The making of handicrafts and
handlooms forms the core of the
cottage industries in India
Dried catfish production drying racks in Myanmar
Watermelons
village distribution center
Pottery is an age old cottage
industry in Bangladesh
Command Economy
1. Central planning
2. Govt controls price/supply
3. Govt controls location of business
4. All citizens “share”
What kind of government is this type of economic system
usually associated with? Has it been successful?
Commercial/market/free enterprise
a. People choose products to buy
b. Driven by profit
c. specialization even in agriculture.
d. Work for money so you can buy goods
e. interdependence
Draw this on your paper
Traditional
Market
Command
Sort the following vocabulary into three categories:
Traditional, Market, Command. Terms may appear in more than one column
Entrepreneur Market Capitalism
Barter Cottage industry Subsistence
Free enterprise Equality Opportunity
Cost Class Specialization
Communism Socialism Innovation
Stagnation Manufactured need Resource allocation
Scarcity Choice Profit
Incentive Competition Cooperative
Common ownership Free association
Types of Economic Activity
1) primary
a) Use natural resources on site (ex. Steel mill at an iron ore mine)
Copper Mine Forestry
2) secondary
a) Factories use materials (usually shipped to them) to produce something new
b) Can be located “on site”
3) Tertiary
a) Provide services
b) Store clerks etc.
c) Located where people are
4) quanternary
a) process, administer, and disseminate information.
b) used to describe "white collar" professionals working in education, government, management, information processing, and research.
c) Can be located anywhere given the technology
How would you classify jobs at Blue Bell?
Primary
Secondary
Tertiary
Quaternary
Levels of Economic Development
1. Developed (more developed - MDC) and developing (less developed - LDC)
2. resources are uneven
3. Historical factors
5. Characteristics of Less Developed vs. Developed Countries
Developed Countries
High standard of living Modern transportation and communication— infrastructure Good medical care Adequate clothing The majority follow modern ways of life
Less Developed Countries
DO NOT have a high standard of living
DO NOT have modern transportation
DO NOT have good medical care
Do NOT have adequate clothing The majority follow traditional
ways of life
This Nigerian woman is gathering water from a local
pond, which is used as a source of drinking water. Credit: Photo by E. Staub, Courtesy of CDC and the Carter Center
More developed regions
Anglo-America – Western Europe
Eastern Europe – Japan
South Pacific
Less developed regions
Latin America – East Asia
Southeast Asia – Middle East
South Asia – Sub-Saharan Africa
What do the MDC’s have in common?
South Korea, Taiwan (ROC), Singapore, and Hong Kong’s economies more developed
than their neighbors’ economies. Why?
Eastern European countries are considered MDC’s but are also considered “in transition”.
Why?
What do the LDC’s have in common? What are the concerns with labeling all of these
regions the same?
Human Development Index (developed by the UN)
1. Life Expectancy
2. Gross domestic product per capita
3. Literacy Rates
Demographic Indicators
GDP
Life Expectancy
Literacy
Infant Mortality
unemployment
What does each tell us about a country?
United States
GDP per capita - $49,000
Life expectancy – 79
Literacy – 99%
Infant mortality – 6
Unemployment – 9%
Push or Pull factors?
Mexico
GDP - $14,800
Life expectancy – 77
Literacy – 86%
Infant mortality – 17
Unemployment – 5%
Push or Pull factors?
China
GDP - $8,500
Life expectancy – 75
Literacy – 92%
Infant mortality – 15
Unemployment – 6.5%
Push & Pull factors?
Haiti
GDP - $1,300
Life expectancy – 62
Literacy – 52%
Infant mortality – 52
Unemployment – 41%
Push & Pull factors?
Ghana
GDP - $3100
Life expectancy – 61
Literacy – 67%
Infant mortality – 15
Unemployment – 11%
Push & Pull factors?
IV. Globalization Globalization – economic partnerships business
to business or country to country
For example: Exxon Mobil has branches on every continent – each one may have a different purpose –
*Drilling – US
*Refining – China
*Communications – India
*Advertising - Europe
In the 1700’s, most were subsistence farmers…
The Industrial Revolution changed our production capabilities…
Growth during the industrial revolution required natural resources
Those with access to the most resources were the “winners”
Demand drives the market, if something breaks the chain then the global market will slow down…
Developed countries demand began to slow in the 1970’s..
Developing countries consumers were far from markets and transportation/skills were inadequate…
Began OUTSOURCING
Outsourcing is sending low skill work to other countries because it’s “cheap” -
This keeps prices in developed countries lower
Forces developed nations workers to increase skill level or be “outsourced”
All countries are competing now for markets and resources
2) Has led to conflict in some regions of the world.
Golan Heights – water
Israel and the Palestinian crisis -- water
along the Sahel-Saharan fringe -- close correlation
between conflict and rainfall. There is competition over land
for grazing in pastoral areas and, further south, conflict
between farmers and pastoral communities.
Somalia -- water and water points.
Rwanda and Burundi, --agricultural land
Chad -- agricultural land and pasture.
Darfur -- land and resources
Cold War—resources and markets
Sierra Leone and Liberia—coltan (which is needed to make
electronic equipment) and diamonds
Iraq and Kuwait – oil
Nigeria, Kurdistan, Niger and between South and North
Sudan – oil
Spratly Islands – oil
Iraq vs Kuwait – oil
In Angola, civil war for money from diamonds, ivory, oil and
other resources
Etc.
Trade Blocs
a) NAFTA —US, Canada, and Mexico—eliminating trade barriers
European Union (EU) trades within group and taxes imports from non members.
2) Transnational Corporations
Operate factories in countries other than their headquarters
Activity #2: How can less developed nations advance their standards of
living?
Scenario: A billion-dollar company is looking to invest and move its
headquarters to one of these countries: Qatar, China, Botswana,
Azerbaijan, Republic of Congo, Angola, East Timor, Iraq, Liberia,
Afghanistan, Uzbekistan, or Turkmenistan.
Form groups and have each group choose one of these countries to
research the following information: average life expectancy, infant
mortality rate and literacy rate.
The students will present their information and discuss why their country
offers the best opportunity to grow a business, and how the development
of that country might be further promoted through social programs.
Finally, (on their own paper) ask the students to make their choice for
placing the new headquarters. Explain their reasoning. Also, suggest
what social programs should be implemented to assist that country.
Activity#3: What is the connection between the levels of
development and different types of economic activities?
Have students define primary, secondary, tertiary and
quaternary economic activities, and provide examples of each.
Then ask students to research the main types of economic
activities found in Mexico and classify them. What is
Mexico’s level of economic development?
How did NAFTA change Mexico’s typical economic
activities?
How are current concerns with drug trafficking affecting
Mexico’s economic development?
Activity #4: How does globalization affect you?
Students will choose 25 items from their classroom or
home and write down where these items are from
around the globe.
Identify the location of these items on a map
indicating the possible paths these items took before
arriving in the United States.
Are there any trends?
Predict the changes you think globalization will bring
about in future.