Transcript Traditional Economy

Traditional Economy
Traditional 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 conflict
A 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 Kora
Market / 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-POD
60 inch TV
New Truck
Swimming pool
More shoes
Needs
(requirements for living)
Food
Cloths
Shelter
People in Traditional Economies
practice, subsistence farming and
raise only enough food for
themselves and their families
Traditional Economies are found in
rural regions,