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ECONOMIC SYSTEMS

Explore how nations answer key economic questions on production, resources, and distribution, featuring ideologies of socialism and capitalism. Delve into the impact of globalization on wealth distribution and economic development worldwide.

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ECONOMIC SYSTEMS

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  1. ECONOMIC SYSTEMS

  2. Nations answer 3 economic Questions -What goods to produce? • -How to Produce? • -For who to produce? • -Economic System- how society answer these questions

  3. -Individual own &control resources -Gov play small role in economy -people own property-if people own they take care of it more -Prices can Change -Income Distribution (how money is divided)– many different levels Government own & control resources -gov make economic plan-plan for all economic activities -gov own property(land, factory, materials) gov make better choice to help people -Gov set prices -Income Distribution- try more equal Free enterprise (capitalism)Socialism

  4. Mixed Economies- use capitalism & Socialism • U.S. Capitalist- but gov control some prices • -Most countries are mixed • -Countries different levels of economic Freedom

  5. Traditional Economies • -         Custom, skill, culture answer 3 questions • - Passed on to next generation • -Example- King own land- give land nobles- peasants farm land for all

  6. Adam Smith 1723-1790 Capitalism Wrote “Wealth of Nations” IDEAS -Self interest make people work hard -Competition keep prices low -gov stay out of business Karl Marx 1818-1883 Socialism Wrote “Communist Manifesto” IDEAS -All goods made by labor -Capitalist exploit labor -Control of business The Two Visions

  7. Globalization

  8. Globalization • - Individuals and business are more affected by what happens around the world • - The growing connections of different countries economies • The world is a capitalist economy

  9. What created Globalization? • -  Globalization happened over time -Technology makes trade between countries faster Examples: -End of Cold war(Fall of Communist Russia) open countries for trade

  10. End of Cold War

  11. Benefits Globalization • -   Trade new people • -   Increase income per person and standard of living • -  More connections to technology -  -More food -More jobs are created around the world

  12. Costs Globalization -makes larger gap between rich & poor nations -gap rich and poor people - Large corporations( huge companies) get more power around world

  13. - Off shoring- having American factories in other countries     -Company pay workers other countries less     - Make larger profit- more money Americans lose jobs

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