Transcript Economic Growth in Southern and Eastern Asia

Economic Growth in Southern
and Eastern Asia
S
S
7
E
1
0
:
T
h
e
s
t
u
d
e
n
t
w
i
l
l
d
e
s
c
r
i
b
e
factors that influence economic growth
and examine their presence or absence
in India, China, and Japan
Quick Quiz: Factors that influence
economic growth
•
•
•
•
a. Raw materials that
Human Capital
come from the land
Natural Resources b. Factories, technology,
Capital
machinery
Entrepreneurship c. People who perform
labor
d. Taking a risk to start a
business
Investments Pay Off
Investments in Human
Capital and Capital lead
to a higher
GDP!!!!!!!!!!!!!
India’s Human Capital
• Number of schools has grown in the past 20
years
• Overall literacy rate is 60%, but 95% for
children 10-14 years old
• English is taught in all schools
• Many are skilled in information technology –
“outsourcing” has become a major practice in
India
India’s Capital Investment
•
•
•
•
Neglected to invest in country’s infrastructure
Terrible road construction
Frequent power outages
Airports, railways, and power plants have
suffered
India’s Natural Resources
•
•
•
•
•
Has very fertile land
Good water supply
Important crops – rice and wheat
Forests
Coal Reserves
India’s Entrepreneurs
• Entrepreneurship is increasing!!
• India’s government supports new business
owners
• Government provides training and facilities
China’s Human Capital
• Has improved educational system
• Number of college students has grown
• Many students are getting engineering
degrees (More engineering degrees)
• Studies show engineering degrees = a
growing economy
• China has also invested in technical schools to
train workers
China’s Capital
• Money has been used to help with
manufacturing
• Manufacturing is half of China’s GDP
• Country also has dependable water services,
electricity, and transportation
China’s Natural Resources
•
•
•
•
•
•
•
Coal
Iron Ore
Petroleum
Natural Gas
Land for industry
Rivers for industry
Not much farmland
China’s Entrepreneurship
• Entrepreneurship has grown dramatically
• Private business is the fastest growing
segment of the economy
• Government helps fund small business
• Welcomes investment from foreign countries
Japan’s Human Capital
• Has a high emphasis on education
• Students take entrance exams to get into high
schools and universities
• Labor force is very highly educated and a
major reason for economic success
Japan’s Capital
• Country has a history of investing in new
technology
• Tax breaks are given to individuals and
corporations who have had high rates of
savings
• Savings have been used for new factories and
machinery
Japan’s Natural Resources
•
•
•
•
Very little farmland and natural resources
Imports raw materials needed for industry
Fishing industry is large in Japan
Country uses its educated workforce and
capital investment to overcome it lack of
natural resources
Japan’s Entrepreneurship
• Low rate of entrepreneurship
• Japanese companies offer a “job for life” to its
employees
• Workers take pride in their position in a
company
• Entrepreneurship is seen as “risky” and
discouraged in Japan