Which country’s businesses are under the most government control?

1. Which country’s businesses are under the most government control? • China • India • Japan • North Korea Command Economy Market Economy

2. Why are most modern economies referred to as “mixed” economies? • Poverty is always highest in counties with market economies. • Government planners do not know how to handle economic problems. • Products made by traditional economies have no markets in the modern world. • Most countries have all aspects of three economic types at work in their economies.

3. Why is specialization so valuable in international trade today? • Most countries can only make on product very well. • Specialization limits the amount of agriculture a country allows. • Specialization always keeps the prices low on goods that are imported into a country. • Specialization allows people to do a more efficient job at producing what they make best and trade for the things they need.

4. What type of action did the Japanese fishermen want from their government? Fisherman in Japan were worried. Fish from the US were being imported at a lower price than Japanese fish. Japanese consumers began buying more of the American fish and less of the Japanese fish. The only way for the Japanese fishermen to sell their fish was to lower the price and reduce their profits. The fishermen asked the Japanese government to create a special tax on fish imported from the US. The extra tax would make the American fish cost more. The Japanese fishermen believed that if the American fish cost more, consumers in Japan would buy Japanese fish instead of American fish. • Tariff • Subsidy • Boycott • Embargo

5. What is a quota? • A tax placed on imported goods when they enter the country • A decision to prevent certain goods from being imported at all • A tax placed on goods when they are purchased in the market place • A limit to the number or amount of a foreign-produced good that is allowed into the country.

6. What is an embargo? • A tax placed on imported goods coming into the country from overseas • A limit to the amount of a certain good allowed into the country • A tax paid by the producer before he can sell his goods in another country • A formal halt to trade with a particular country for economic or political reasons

7. What is the definition of human capital? • Skills and education workers have • Taxes collected from a country’s workers • Money paid to workers for producing goods • The amount of goods sold in foreign trade in a year

8. How do I distinguish among the various government systems?

10. Federal (Federation) S.G.: Power is divided between one central and several regional authorities.

11. Federation / Federal Ways Government Distributes Power Regional Authority Regional Authority Central Authority Regional Authority Regional Authority

12. Unitary S. G.: Power is held by one central authority.

13. Unitary Ways Government Distributes Power Regional Authority Regional Authority Central Authority Regional Authority Regional Authority

14. Confederation • S.G.: • Voluntary association of independent states that often only delegate a few powers to the central authority. • Secure some common purpose. • Agree to certain limitations on their freedom of action. • States retain considerable independence. • Less binding than a federation.

15. Confederation Ways Government Distributes Power Regional Authority Regional Authority Central Authority Regional Authority Regional Authority

16. Ways Government Distributes Power All key powers are held by the central government State/regional authorities hold most of the power Federal Confederation Unitary Strong central government Weaker central government

17. How Governments Determine Citizen Participation High Participation High Participation Democracy General Citizens’ Participation Select Citizens’ Participation Citizen Participation Government Power Government Power Citizen Participation Government Power Low or No Participation Low or No Participation Low or No Participation Autocratic Oligarchic

18. Autocratic How Governments Determine Citizen Participation • S.G.: • One person possesses unlimited power. • The citizen has limited, if any, role in government.

19. How Governments Determine Citizen Participation Autocratic • The oldest form of government. • One of the most common forms of government. • Maintain power through inheritance or ruthless use of military and police power.

20. Oligarchy How Governments Determine Citizen Participation • Government by the few. • Sometimes a small group exercises control, especially for corrupt and selfish purposes. • The citizen has a very limited role.

21. Describe the two predominant forms of democratic government: parliamentary and presidential Parliamentary Democracy • S. G.: • A system of government having the real executive power vested in a cabinet composed of members of the legislature who are individually and collectively responsible to the legislature. • May have a Prime Minister elected • by the legislature.

22. Describe the two predominant forms of democratic government: parliamentary and presidential Presidential Democracy • S. G.: • A system of government in which the president is constitutionally independent of the legislature. • The executive branch exists separately from the legislature (to which it is generally not accountable).

23. Make your foldable for today. Label the 6 slits: Confederation Federal Unitary Autocratic Oligarchy Democratic Citizen Participation In Government Government Systems

24. Be sure to include the following information!

25. Exit Questions (Review): • In an autocracy, the ______ has absolute power. • In an oligarchy, the decision-makers are a ____ group of people. • Why do the individual voters have more power in a democracy than they do in an autocracy or an oligarchy? • Hint: What role do the people play in the decision-making process?