traditional economy traditional economies, found in rural regions, practice subsistence farming
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Traditional EconomyTraditional Economies, found in rural regions, practice subsistence farming
COMMAND ECONOMY
1.Command –Communist An economy in which the government owns almost all the land and natural resources and makes most of the economic decisions.Ex.: North Korea, Cuba
INDUSTRY / BUSINESS
Retail - Consists of the sale of physical goods or merchandise from a fixed location.
Example: Target, Wal-mart, Old Navy, Supermarket
Industry
Agriculture – prepare and process raw materials (natural resources), such as timber, wheat, and iron ore.
example: farms, mining company, logging company
A company that supports or helps another business to sell products is considered a SERVICE BUSINESS
LIKE THE ELECTRIC COMPANY THE CABLE PROVIDER OR THE INTERNET
Wholesale – service industries, move goods (transporting) from the manufacturer to another business or to consumers example: Sam’s Club, McLane's Food Distribution, Kellogg's
If there were not enough workers to manufacture electronics the U.S.A. Would have a problem!
ELECTRONIC SHORTAGE
Scenario: Iran has stopped selling Oil.
The US is in short supply of gasoline
The price of gasoline will go up!
A Developed Economy
High GDP
High Life Expectancy
High Literacy Rate
People in developed economies have access to education and healthcare
Mr. Brown wants to start a new business; what does he need to consider when locating his new factory?
Available Literate (able to read) workers
Near needed resources
Transportation available
Texas has run out of cows!
What would the logical solution be if you were in the business of making leather boots?
Move your company to Montana where there are plenty of cows
The scarcity of resources causes countries to trade peacefully,
But!!!! It can lead to military conflictA country could deal with uneven resource distribution through economic interdependence and trade with other countries that do have the resources
Democratic countries usually have Market / Free enterprise economies
If the government chose which products that companies were allowed to produce the choice of products to buy would be limited.
Economic Systems
1. Command – An economy in which the government owns almost all the land and natural resources and makes most of the economic decisions. Exampe: Cuba & North KoraMarket / Free Enterprise – An
economy in which the people own and control businesses. Example: U.S. Japan
Traditional Economies, found in rural regions, practice subsistence farming
Wants & Needs
Wants( I WANT) i-POD60 inch TVNew TruckSwimming pool More shoes
Needs (requirements for living)FoodClothsShelter
People in Traditional Economies practice, subsistence farming and raise only enough food for themselves and their families
Traditional Economies are found in rural regions,