Economic Systems

Capitalism Mercantilism

Traditional economy

Command Economy

Capitalism Economic system

based on the private ownership

Private business own the means of

production and distribution of goods

Also known as a “free market”

system

Key Ideas:1.Adam Smith 2.Lassiez-Faire

3.Supply & Demand4.Competition

(low prices/better goods)

Mercantilism

A nation that builds wealth by exporting more goods than it

imports

Colonies are instrumental in this

policy as they supply their parent nations with

raw materials that are used to produce finished

goods, and then exported back to the

colonies

Examples from history:1.England – India

2.England – South Africa3.Spain - Mexico

Traditional economy

Economy based on agriculture or

“handmade” goods

ONLY things made by

HAND

This is for economies without factories…

Example:Trading a

handmade pottery for corn & wheat.

Command Economy

Economic system controlled by strong dictator, centralized

government

Highly dependent on Manufactured goods

(factory)

Used in Communism

Examples:

1.Soviet Union2.Cuba

3.North Korea

Geography & the

Environment

Geography & the

Environment

Affect of Mountains

Affect of Mountains

Affects of Rivers

Affects of Rivers

Affects of Deserts

Affects of Deserts

Affects of Islands

Affects of Islands

Mountains

Isolated nations

Examples of Nations:

1.Ancient Greece (Athens/Sparta)

2.China/India

Rivers

Gives civilizations life!

Early River

Valley Civilizati

ons

Examples:1.Mesopotamia

2.Nile3.Yellow River

(China)4.Indus Valley (India)

Uses:1.Trade

2.Cultural Diffusion3.Food

Deserts

Barrier to Cultural Diffusion

And Trade

Largest desert isthe Sahara

(North Africa)

Desertification:

Good soil becomes a desert

IslandsIslands

Protects and

Isolates Nations

Archipelago A group or chain of islands

Examples:

1.England

2.Japan

3.Australia

Justice & Human Rights

Justice, freedom, and equality

Laws

Human Rights Violations

Human Rights Violations:

1.Genocide (Hitler / Jews)

2.Apartheid (S. Africa)3.Caste System (India /

Hinduism)

Human Rights Violations

Key Words:1.Discrimination

2.Genocide (ethnic cleansing)3.Holocaust

4.Anti-Semitism

Justice, freedom, and equality

Example:Universal

Declaration of Human Rights

French Revolution Document—giving

equality all

International Court of Justice

(Nuremburg Trials)

Punished those Nazi’sWho killed Jews.

Laws

Hammurabi’s Code :

Oldest written system of laws

Justinian’s Code: A law code

created by the Byzantine Emperor Justinian

Law of the Twelve Tables:

Strict Roman laws

Science & Technology

Golden Ages

Scientific Revolution

Inventions

Industrial Revolution

Golden Ages

A time of:

Peace

Prosperity

Progress

Example:1.Ancient Egypt (created

Pyramids)

2.Islam (creation of algebra)

3.Renaissance (new knowledge)

New ideas:1.Art

2.Architecture 3.Math

4.Science

Scientific Revolution

Scientists questioned church beliefs about how

the universe worked(1500’)

Key Words:1.Scientific Method

2.Heli0centric3.Isaac Newton

4.“Reason”

Changed the way Human

understoodnature, lead to

many new inventions.

Inventions

Telescope1.Isaac Newton

2.Proved “Heliocentric Theory” true

3.Lead to new inventions = microscope

Printing Press1.Johannes Gutenberg

2.Germany3.Allowed for many more

books = cheap(more information)

Industrial Revolution

Invention of Factories

1.Manchester, England

2.Rural to Urban3.Urbanization

4.Mass Production5.Cheaper Products

Led to:1.Need for

more resources

2.Imperialism 3.Child Labor

4.Unions