Southern & Eastern

ECONOMIC
Asia’s
SYSTEMS
 STANDARDS:
SS7E7 Analyze different economic
systems.
a. Compare how traditional, command, and
market economies answer the economic
questions of 1-what to produce, 2-how to
produce, and 3-for whom to produce.
b. Explain that countries have a mixed
economic system located on a continuum
between pure market and pure command.
c. Compare and contrast the economic
systems in China, India, Japan, North Korea,
and South Korea.
© Brain Wrinkles
 TEACHER INFO: CLOZE Notes
• The next pages are handouts for
the students to use for note-taking
during the presentation. (Print
front to back to save paper and
ink.)

• Check the answers as a class after

the presentation.

© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 1
ECONOMIC SYSTEMS
Let’s Review
• Do you remember the three questions that every country must answer
when developing its economic plan?
• ___________________________ will be produced?
• ___________________________ be produced?
• ___________________________ the goods/services?
• The way a country answers these questions determines its
___________________________ (Traditional, Command, or Market).
Traditional
• This system answers the three economic questions based on traditional
___________________________ of the past.
• The values and traditions have been ___________________________ to
generation.
• Some ___________________________ have traditional economies where the
people still follow the way of life of their ancestors.
Command
• This system answers the three economic questions through
___________________________ .
• The ___________________________ of the country’s economic decisions: prices
of goods, wages of workers, goods to be made, etc.
• China’s ___________________________ was an example of a command system.
• This system is ___________________________ ; because of this, there are no
PURE command countries in the world today.
• Some ___________________________ : Cuba, former Soviet Union, North Korea,
former East Germany, etc.
• All of these countries have the same type of government:
___________________________ !
• The government is ___________________________ of everything.
Market
• This system answers the three economic questions based on
___________________________ in the market place.
• The goods and services produced are determined by what the people
___________________________ .
• The government ___________________________ over the economy; private
citizens answer all economic questions.
© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 2
Market
• In a truly free market economy, the government would
___________________________ at all. Scary…
• There would be no laws to make sure goods/services ___________________________ .
*Food! Medicine!
• There would be no ___________________________ workers from unfair bosses.
• Because of this, there are no PURE market economies, but some countries are
___________________________ .
Mixed
• Since there are ___________________________ with either a “pure command” or a
“pure market” economy, what does that make them?
• Most democratic countries have some ___________________________ systems, so we
keep it simple and call them: ___________________________ .
• Their economies are not run entirely by government commands, nor do they side
with the free market 100% of the time—they are ___________________________ .
• Of course, most countries’ economies are ___________________________ of system
than another.
SE Asia
• Most countries in Southern and Eastern Asia have ___________________________ ;
however many of them have a high level of government involvement that leans
___________________________ than to market.
• Strictly-controlled prices and ___________________________ are common throughout
the region, especially in China and North Korea.
• On the other hand, the region also has some countries with
___________________________ , like South Korea and Japan.
CHINA
Mixed
• China has a ___________________________ that is about 57% free and 43%
command.
• China is transitioning from a command economy controlled by the
___________________________ government, towards a mixed market one with more
economic freedom for individuals.
• Since China started loosening up the centrally planned economy in the 1970s,
___________________________ have produced much more of China’s growth.
Growth
• China’s economy is the ___________________________ in the world, as well as the
largest economy in the world.
• Economists predict that within the next twenty years, China will
___________________________ in economic strength.
© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 3
Freedom
• Throughout the past several decades, China has transitioned away from a
centrally-planned command economy and is moving more
___________________________ one.
• China’s national government has let more and more citizens and private
corporations ___________________________ that it previously owned.
• The government has also allowed farmers to make their own decisions
regarding crops, rather than ___________________________ .
• The government has loosened its control and now
___________________________ among businesses, which has helped the
economy grow.
• Today, Chinese companies have more ___________________________ of their
goods based on supply and demand of the market.
• China’s government has also allowed businesses to
___________________________ through investments made in a stock market.
Regulation
• While private enterprise is playing a larger role in China’s economy, the
national government is still ___________________________ in the country’s
economic planning.
• The biggest companies in China are ___________________________ .
• The government operates industries like banking, oil, airlines, and
___________________________ .
• It also ___________________________ in order to pay for infrastructure and
social services.
INDIA
Mixed
• India has a ___________________________ that is about 53% free and 47%
command.
• When India gained independence in 1947, its government set up a
___________________________ and controlled all industries and production.
• Since the early 1990s, the government ___________________________ and has
allowed private businesses to participate in the economy.
Freedom
• Over the past thirty years, India’s national government has let more and
more citizens and private corporations ___________________________ that it
used to own.
• Private businesses now have the ___________________________ how much of a
good to produce and to set their own prices.
• In addition, in order to promote entrepreneurship, the government provides
___________________________ owners with training, facilities, and loans to get
started.
© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 4
Growth
• Since the government has loosened its control , India’s economy has
been growing rapidly and is now ranked the
___________________________ in the world.
• Because of its ___________________________ , India has developed
prosperous information technology and software services industries.
• Unfortunately, although the transition from a command to a more
market system has been good for India’s economy, millions of Indians
still ___________________________ .
Regulation
• India’s government is ___________________________ in its economy.
• The government imposes high taxes on private businesses, subsidies
on goods in the private sector, and ___________________________ .
• A number of industries are state-run, while the government is
___________________________ in others.
• Strict government regulations make ___________________________ .
JAPAN
Mixed
• Japan has a ___________________________ system that is about 70% free
and 30% command.
• When World War II ended, Japan’s ___________________________ .
• Since then, the Japanese government has worked hard to build a
___________________________ that is based mostly on free market ideas.
Freedom
• In Japan’s mixed market economy, private businesses and individuals
have the ___________________________ and to decided how much to
produce based on supply and demand.
• Japanese businesses and citizens ___________________________ ,
resources, and factories.
Regulation
• Japan’s government ___________________________ other than the
country’s major television network, but it does regulate some aspects
of the economy like ___________________________ .
• It also ___________________________ on businesses and citizens and
places quotas or tariffs on imports.
• Japan’s government also ___________________________ , which foreign
governments have complained about for many years.
© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 5
NORTH KOREA
Command
• North Korea’s economy is only 5% free and
___________________________ .
• Economists say it is a ___________________________ economic system.
• North Korea’s economy is the ___________________________ and
repressed in the world.
Freedom?
• Private businesses and citizens have ___________________________ in
North Korea’s economy.
• In fact, entrepreneurship is ___________________________ .
• The Communist central government makes
___________________________ about what to produce, how much to
charge, and for whom.
Regulation
• North Korea’s government regulates its economy
___________________________ from private citizens.
• It ___________________________ is distributed to the people.
• It ___________________________ and resources.
• The ___________________________ almost all foreign businesses from
investing (or helping).
Growth?
• Having so much government control has not allowed North Korea’s
economy to ___________________________ .
• North Korea has ___________________________ since the early 1990s.
• The country’s agriculture does not produce
___________________________ the population, so the country is forced to
receive aid from other countries in order to avoid famine.
• Factories, machinery, and equipment are severely outdated because
the government has invested ___________________________ rather than
the economy.
• North Korea ___________________________ to join the world economy
even if other countries wanted it to.
• Most countries (other than China) ___________________________ with
North Korea because of its strict government and history of
aggression.
© Brain Wrinkles
 SE Asia’s Economic Systems
CLOZE Notes 6
SOUTH KOREA
Mixed
• South Korea has a ___________________________ that is about 74% free
and 26% command.
• In the 1970s, South Korea’s democratic government
___________________________ on economic decisions.
• This has led to ___________________________ for South Korea.
• Today, the country has a ___________________________ economy that
leans towards a free market system.
Freedom
• Private businesses and citizens have ___________________________ in
the growth of South Korea’s economy.
• They are able to set prices and decide ___________________________
based on supply and demand without much government interference.
• South Korea’s government supports entrepreneurship, and
___________________________ ranks at 91%.
Regulation
• In order to pay for state ___________________________ , South Korea’s
government charges taxes on businesses and citizens.
• Even though most of the former state-run industries have privatized,
the government still runs the real estate, energy, railroad, and
___________________________ .
© Brain Wrinkles
 Southern & Eastern
ECONOMIC
Asia’s
SYSTEMS
China, India, Japan, North
Korea, & South Korea

© Brain Wrinkles
 ECONOMIC
SYSTEMS
© Brain Wrinkles
 Let’s Review
• Do you remember the three questions
that every country must answer when
developing its economic plan?

1. What goods/services will be

produced?
2. How will goods/services be
produced?
3. Who will consume the
goods/services?

• The way a country answers these

 Traditional
• This system answers the three
economic questions based on
traditional customs and beliefs of the
past.

• The values and traditions have been

passed down from generation to
generation.

• Some rural villages in Asia have

traditional economies where the
people still follow the way of life of
Rice Village in SE Asia - Traditional
Economy
 Command
• This system answers the three
economic questions through strict
government control.

• The government regulates all of the

country’s economic decisions: prices
of goods, wages of workers, goods to
be made, etc.

• China’s Great Leap Forward was an

example of a command system.
Communal Farming during the Great
Leap Forward
 Command
• This system is very harsh to live
under; because of this, there are no
PURE command countries in the
world today.

• Some countries are close: Cuba,

former Soviet Union, North Korea,
former East Germany, etc.

• All of these countries have the same

type of government: Communist!
North Korea’s Command
Economy
 Market
• This system answers the three
economic questions based on supply
and demand in the market place.

• The goods and services produced

are determined by what the people
want to buy and sell.

• The government has no control over

the economy; private citizens
answer all economic questions.
 Market
• In a truly free market economy, the
government would not be involved at all.
Scary…

• There would be no laws to make sure

goods/services were safe. *Food!
Medicine!

• There would be no laws to protect

workers from unfair bosses.

• Because of this, there are no PURE

 Mixed
• Since there are really no countries
with either a “pure command” or a
“pure market” economy, what does
that make them?

• Most democratic countries have

some characteristics of both
systems, so we keep it simple and
call them: MIXED.
 Mixed
• Their economies are not run
entirely by government commands,
nor do they side with the free
market 100% of the time—they are
somewhere in between.

• Of course, most countries’

economies are closer to one type of
system than another.
North Korea’s Command
Economy
 SE Asia
• Most countries in Southern and Eastern
Asia have mixed economies; however
many of them have a high level of
government involvement that leans
closer to command than to market.

• Strictly-controlled prices and

government-owned industries are
common throughout the region,
especially in China and North Korea.

• On the other hand, the region also has

 CHINA
© Brain Wrinkles
 Mixed
• China has a mixed economic system that
is about 57% free and 43% command.

• China is transitioning from a command

economy controlled by the communist
Chinese government, towards a mixed
market one with more economic freedom
for individuals.

• Since China started loosening up the

centrally planned economy in the 1970s,
private companies have produced much
© Brain Wrinkles
 Growth
• China’s economy is the fastest-
growing economy in the world, as
well as the largest economy in the
world.

• Economists predict that within the

next twenty years, China will lead the
world in economic strength.
© Brain Wrinkles
© Brain Wrinkles
 Freedom
• Throughout the past several decades,
China has transitioned away from a
centrally-planned command economy
and is moving more towards a free
market one.

• China’s national government has let

more and more citizens and private
corporations take over industries that it
previously owned.

• The government has also allowed

farmers to make their own decisions
© Brain Wrinkles
 Freedom
• The government has loosened its
control and now encourages
competition among businesses, which
has helped the economy grow.

• Today, Chinese companies have more

power to set prices of their goods
based on supply and demand of the
market.

• China’s government has also allowed

businesses to raise their own money
through investments made in a stock
© Brain Wrinkles
 Regulation
• While private enterprise is playing a
larger role in China’s economy, the
national government is still extremely
influential in the country’s economic
planning.
• The biggest companies in China are all
state-owned.
• The government operates industries like
banking, oil, airlines, and
telecommunications.
• It also charges high taxes in order to pay
for infrastructure and social services.
© Brain Wrinkles
 INDIA
© Brain Wrinkles
 Mixed
• India has a mixed economic system
that is about 53% free and 47%
command.

• When India gained independence in

1947, its government set up a
command economy and controlled all
industries and production.

• Since the early 1990s, the

government loosened some of its
 Freedom
• Over the past thirty years, India’s
national government has let more and
more citizens and private corporations
take over industries that it used to own.

• Private businesses now have the ability

to decide how much of a good to
produce and to set their own prices.

• In addition, in order to promote

entrepreneurship, the government
provides support to new business owners
with training, facilities, and loans to get
started.
 Small-scale Garment Factory in India

© Brain Wrinkles
 Growth
• Since the government has loosened its
control , India’s economy has been growing
rapidly and is now ranked the 7th-largest
economy in the world.

• Because of its large, educated population,

India has developed prosperous
information technology and software
services industries.

• Unfortunately, although the transition from

a command to a more market system has
been good for India’s economy, millions of
 Engineering Technology Education in India

© Brain Wrinkles
 Regulation
• India’s government is still very active
in its economy.
• The government imposes high taxes
on private businesses, subsidies on
goods in the private sector, and tariffs
on imported goods.
• A number of industries are state-run,
while the government is partially
involved in others.
• Strict government regulations make
 JAPAN
© Brain Wrinkles
 Mixed
• Japan has a mixed market economic
system that is about 70% free and
30% command.

• When World War II ended, Japan’s

economy was crushed.

• Since then, the Japanese

government has worked hard to
build a modernized economy that is
based mostly on free market ideas.
© Brain Wrinkles
 Freedom
• In Japan’s mixed market economy,
private businesses and individuals
have the ability to set their own
prices and to decided how much to
produce based on supply and
demand.

• Japanese businesses and citizens

own much of the land, resources,
and factories.
 Regulation
• Japan’s government owns few
companies other than the country’s
major television network, but it does
regulate some aspects of the
economy like banking and trade.

• It also imposes taxes on businesses

and citizens and places quotas or
tariffs on imports.

• Japan’s government also screens

foreign investments, which foreign
governments have complained about
 NORTH
KOREA
© Brain Wrinkles
 Command
• North Korea’s economy is only 5%
free and 95% controlled.

• Economists say it is a fully

command economic system.

• North Korea’s economy is the most

government-controlled and
repressed in the world.
 Freedom?
• Private businesses and citizens
have no real role in North Korea’s
economy.

• In fact, entrepreneurship is
considered illegal.

• The Communist central government

makes all economic decisions about
what to produce, how much to
charge, and for whom.
 North Korean Factory Inspection

© Brain Wrinkles
 Regulation
• North Korea’s government regulates
its economy without any input from
private citizens.

• It controls how food is distributed to

the people.

• It owns almost all property and

resources.

• The government also blocks almost all

foreign businesses from investing (or
helping).
 Farm Inspection

© Brain Wrinkles
 Growth?
• Having so much government control
has not allowed North Korea’s
economy to grow or innovate.

• North Korea has not had positive

economic growth since the early
1990s.

• The country’s agriculture does not

produce enough to feed the
population, so the country is forced to
 Growth?
• Factories, machinery, and equipment are
severely outdated because the
government has invested heavily in the
military rather than the economy.

• North Korea would not be prepared to

join the world economy even if other
countries wanted it to.

• Most countries (other than China) refuse

to trade with North Korea because of its
strict government and history of
 Outdated Tractor Simulator –
How North Korea trains future farmers.

© Brain Wrinkles
 SOUTH
KOREA
© Brain Wrinkles
 Mixed
• South Korea has a mixed economic
system that is about 74% free and 26%
command.

• In the 1970s, South Korea’s democratic

government partnered with private
companies on economic decisions.
• This has led to rapid economic growth
for South Korea.

• Today, the country has a highly

industrialized economy that leans
© Brain Wrinkles
 Freedom
• Private businesses and citizens
have played a large role in the
growth of South Korea’s economy.

• They are able to set prices and

decide how much to produce based
on supply and demand without
much government interference.

• South Korea’s government supports

entrepreneurship, and overall
business freedom ranks at 91%.
 Regulation
• In order to pay for state services
and infrastructure, South Korea’s
government charges taxes on
businesses and citizens.

• Even though most of the former

state-run industries have privatized,
the government still runs the real
estate, energy, railroad, and road
construction sectors.
 TEACHER INFO:
• Print off the chart below for each
student.

• They should complete the charts

after discussing the presentation.

• Check answers as a class when

finished.

© Brain Wrinkles
 Southern and Eastern Asia’s Economic Systems
Directions: Complete the chart below with information that you learned during the presentation.
Economic
Freedoms Regulations Growth
System

China

India

Japan

North
Korea
South
Korea
© Brain Wrinkles
 TEACHER INFO: Souvenir Shirts
• Pass out the Souvenir Shirts handout to
each student. (Print front-to-back to save
paper.)

• The students will create t-shirts to showcase

each country’s key economic details. The
shirts should include symbols and images
that represent the country’s system,
freedoms, regulations, etc.

• The students will also write a brief

description of each country’s economy in
© Brain Wrinkles
 Economic Systems Souvenir Shirts
Directions: Imagine that you own a touristy gift shop in SE Asia. Design fun & creative t-shirts to sell that showcase
each country’s key economic details. Include information about the country’s system, freedoms, regulations, etc.
Next, write a brief description of each country’s economy in the textbox.

CHINA INDIA

JAPAN

© Brain Wrinkles
 Economic Systems Souvenir Shirts
NORTH KOREA

SOUTH KOREA

© Brain Wrinkles
 TEACHER INFO: Here’s My Card
• Print off the Here’s My Card handout for each
student.

• The students will create a business card that

represents the economy of China, India, Japan,
North Korea, or South Korea. (You could number the
students off & then each person in the group will
have a different country. At the end, they can share
their cards with group members.)

• The business cards will include: the country’s

name, economic system, (made up) email, creative
logo, brief description of economy, (made up)
awards that the country has received, and a list of
© Brain Wrinkles
 Here’s My Card…
Directions: Create a business card to represent the economy of one of the Asian countries that we have studied-
China, India, Japan, North Korea, or South Korea. The purpose of the card will be to encourage (or discourage in one
case) international trade. Your card should include: country’s name, economic system, (made up) email, creative
logo, brief description of economy, (made up) awards that the country has received, and a list of things that the
country has to offer. Why should other countries trade with this country?

Description:
Logo
____________________________
____________________________
____________________________ Name: __________________________
____________________________
____________________________ System: _________________________
____________________________
____________________________ Email: __________________________
Awards:
____________________________
____________________________
____________________________
____________________________

Available Products:
____________________________
____________________________ Slogan:
____________________________ _____________________________________________________________
____________________________ _____________________________________________________________
____________________________ _____________________________________________________________
____________________________ _____________________________________________________________
____________________________

© Brain Wrinkles
 TEACHER INFO: Comprehension Check
• Print off the Comprehension Check
for each student. (Print front-to-
back to save paper.)

• After the lesson, have the

students answer the questions.
*This could also be used as a quiz.

© Brain Wrinkles
 SE Asian Economies
Comprehension Check
1. What are the three economic questions that every country must
answer?
2. How does a command economic system answer the three economic
questions?
3. Which country’s economy has the most government control out of all
the countries in the world?
4. How are the three economic questions answered in a traditional
economic system?
5. In a free market economy, what do private citizens and businesses
base their economic decisions on?
6. What type of economic system do most democratic countries have?
7. Which country has the world’s fastest-growing economy?
8. Describe how China is moving from a command economic system
towards a market one:
9. How has India moved from a command economy to a mixed
economy in recent years?
10. China and India both have mixed economic systems that are
moving away from command and more towards market. Why do you
think these countries (and other governments with command
economies) eventually begin to give up some of their control?
© Brain Wrinkles
 SE Asian Economies
Comprehension Check
11. What type of economic system is found in Japan?
12. Describe South Korea’s economy:
13. Describe North Korea’s economy:
14. Which country does not belong? Explain. SOUTH KOREA JAPAN
NORTH KOREA
15. Which country does not belong? Explain. CHINA INDIA JAPAN
16. In your opinion, what is the relationship between adding elements
of a market system to a country’s economy and the country’s
economic growth?
17. Based on what you’ve learned about each country’s economic
system, in which country would your MOST like to live? Why?
18. Based on what you’ve learned about each country’s economic
system, in which country would your LEAST like to live? Why?
© Brain Wrinkles
Name:

Economic Continuum
Identify where the economies of China, India, Japan, North Korea, and South Korea lie on the
economic continuum.

Pure Pure
Command A B C D E Market

A: ___________ B: ___________ C: ___________ D: ___________ E: ___________

© Brain Wrinkles

Name:

Economic Continuum
Identify where the economies of China, India, Japan, North Korea, and South Korea lie on the
economic continuum.

Pure Pure
Command A B C D E Market

A: ___________ B: ___________ C: ___________ D: ___________ E: ___________

© Brain Wrinkles