ASIA

1. ASIA ECONOMIC UNDERSTANDING Factors that Influence Economic Growth; Human Capital & Capital (India, China, and Japan) Standard SS7E10:

2. ASIAeconomic UNDERSTANDINGS Standard SS7E10: The student will describe factors that influence economic growth and examine their presence or absence in India, China, and Japan. a. Explain the relationship between investment in human capital (education and training) and GDP.

3. ASIAeconomic UNDERSTANDINGS Standard SS7E10: (cont.) b. Explain the relationship between investment in capital (factories, machinery, and technology) and GDP. c. Describe the role of natural resources in a country’s economy.

4. ASIAeconomic UNDERSTANDINGS Standard SS7E10: (cont.) d. Describe the role of entrepreneurship.

5. First five Agenda Message: Social Studies Progress Reports go home today for 3rd thru 6th Periods. CDA-IV is this Friday. Before School Tutoring is Tues. at 7:30a. Standard: Describe the role of Natural Resources (minerals and other resources that come from the earth) and Entrepreneurship (individuals with new ideas who take the risk of starting new businesses) in a country’s economy. Essential Question: Monday March 10th: How does investment in Capital affect GDP? Warm-up: Name the four factors that influence economic growth. Today We Will: • Complete Factors that Influence Economic Growth • Start Air & Water Pollution

6. answers E.Q. Answer for Monday, March 10th: Investment in capital (factories, machinery, technology, roads, modern transportation systems, reliable electrical power, etc.) causes GDP to rise and also causes a similar rise in the /standard of Living. Warm-Up: Human Capital Capital Natural Resources Entrepreneurship

7. FIRST FIVE Agenda Message: After-school tutoring Wednesday, from 4-5p. CDA-IV is Friday. Pop-Quiz on Factors that Influence Economic Growth is Wednesday. Standard: Explain the relationship between investment in Human Capital (education and training of workers)and in Capital (factories, machinery, technology, roads, etc.)to GDP. Essential Question for Tuesday, March 11th; Why are entrepreneurs important to the economic growth of China’s economy? Warm-up: What is the source of nearly all of Japan’s economic growth? Today We Will: • Review Government Pop Quiz • Continue Factors that influence economic growth

8. answers E.Q. Answer for Tuesday March 11th: In China, private business is the fastest growing segment of the economy. China’s government helps fund small business development and welcomes investment from foreign countries. Warm-up Answer: Manufacturing

9. FIRST FIVE Agenda Message: After-School tutoring is TODAY 4-5p. CDA-IV is Friday. Pop-Quiz is today on Factors that influence Economic Growth. Standard: Explain the relationship between investment in Human Capital (education and training of workers) and in Capital (factories, machinery, technology, roads, etc.)to GDP. Essential Question: Wednesday, March 12th; The three top economies in Asia have all invested in the same factors to influence Economic Growth. What are those investments? Warm-up: Which country in S&EA is the leader in outsourcing of U.S. Customer Service jobs? Today We Will: • Finish Factors that Influence Economic Growth • Review Pop-Quiz

10. answers E.Q. Answer for Wednesday March 12th: Human Capital; the training and education of its workers Capital; Factories, machinery, technology, reliable electrical power, good transportation systems and roads. Warm-up Answer: India

11. ASIAeconomic UNDERSTANDINGS What Influences Economic Growth? There are four factors that influence economic growth in every country causing; • Gross Domestic Product (GDP) to rise, as well as • the Standard of Living

12. ASIAeconomic UNDERSTANDINGS The four factors that influence economic growth are; • Human Capital (people who perform labor), • Capital(factories, machinery, and technology), • Natural Resources (raw materials that come from the land like minerals), and • Entrepreneurship(the ideas and risk involved in starting a business).

13. ASIAeconomic UNDERSTANDINGS Economists measure a country’s economic performance by a standard called Gross Domestic Product (GDP). GDP is the total value of goods and services produced by a country’s in a given year and converted to U.S. dollars for comparison.

14. ASIAeconomic UNDERSTANDINGS A country’s GDP is used to determine the health of a country’s economy and compare it to other economies. Since Japan and China have the strongest economies in Southern and Eastern Asia, those two countries have the highest GDP’s.

15. ASIAeconomic UNDERSTANDINGS Investments Pay Off How a country manages its productive resources makes a big difference in the strength of its economy. Clearly,investment in human capital delivers immense rewards. Studies prove that investment in education and skills training for workers leads to a higher GDP.

16. ASIAeconomic UNDERSTANDINGS Education helps develop a smarter, more innovative, and more productive workforce which leads to greater economic growth. Economists also see a clear relationship betweeninvestment in capital like factories, machinery, roads, and technology (computers and software) and GDP.

17. ASIAeconomic UNDERSTANDINGS Examples include a company building a new factory or the government building a new highway. Investment in capital equipment helps economic growth by providing workers with the best and newest tools. This makes them more productive, and increases a country’s exports and GDP.

18. ASIAeconomic UNDERSTANDINGS What’s Up With India? In India, education and investment in human capital is a major priority of the government. The number of schools, especially at the high school level and university level, has grown dramatically in the past 25 years.

19. ASIAeconomic UNDERSTANDINGS Although India’s overall literacy rate is about 60%, the rate among children 10 to 14 years of age is close to 95%. This means that India’s investment in human capital will benefit the economy greatly in the future as educated children enter the workforce.

20. ASIAeconomic UNDERSTANDINGS One important aspect of Indian education is that English is taught in all schools. Careers in business, government, or science require fluency in English.

21. ASIAeconomic UNDERSTANDINGS In addition, many Indians are skilled in the important field of information technology. Due to the English and computer skills of many citizens, India has become a major source of workers for a practice known as outsourcing.

22. ASIAeconomic UNDERSTANDINGS This practice involves American companies hiring Indian workers to perform jobs that used to be done in America because Indian workers can be paid lower wages than Americans.

23. ASIAeconomic UNDERSTANDINGS India’s Need for More Capital Investment While India has invested greatly in human capital, the government has neglected capital investment in the country’s infrastructure. Frequent power outages and terrible roads are just a few problems restricting India’s growth.

24. ASIAeconomic UNDERSTANDINGS In many small towns, power is only available for a few hours a day so that large cities can have power 24 hours a day. Today the Indian government is undertaking a massive effort to improve India’s roads, airports, railways, and power plants.

25. ASIAeconomic UNDERSTANDINGS Let’s Check on China Determined to modernize its economy, China has made significantinvestments in human capitalby improving its educational system.

26. ASIAeconomic UNDERSTANDINGS The number of students enrolled in college has grown tremendously over the last decade and many of them are pursuing engineering degrees. This trend is good news for China because studies show the scientists and engineers play an important role in a growing, innovative economy.

27. ASIAeconomic UNDERSTANDINGS China is also investing in technical schools to train workers in necessary job skills. China’s Capital Investment China has also made important Capital investments that serve as the foundation for its growing GDP. China has poured money into manufacturing, which accounts for almost half of its GDP.

28. ASIAeconomic UNDERSTANDINGS The country has also built a strong infrastructure of dependable water services, electricity, and transportation.

29. ASIAeconomic UNDERSTANDINGS Japan’s Economic Journey At the end of WWII, Japan’s land and its economy were in ruins. Since then, Japan’s economy has grown to become one of the strongest in the world!

30. ASIAeconomic UNDERSTANDINGS One of the reasons for tremendous economic growth is Japan’sinvestment in human capital. Japan places an emphasis on education. Students take entrance exams to get into high schools and universities, and the competition is fierce.

31. ASIAeconomic UNDERSTANDINGS Japan’s highly educated and productive labor force is a major reason for the country’s economic success. Japan’s Capital Investment Japan has also made massive capital investments. Japan has a history of inventing new technology and providing its workers with the latest equipment.

32. ASIAeconomic UNDERSTANDINGS Japan’s government has also encouraged high rates of savings by individuals and corporations by offering tax breaks. These savings have been used for capital investments like factories and machinery to fuel economic growth. Japan also has a modern, infrastructure to support its economy.

33. ASIAeconomic UNDERSTANDINGS Keep Those Ideas Coming! Entrepreneurshave a vital role to play in economic growth. They are the people with new ideas for new products and services, and they use human capital, capital, and natural resources to bring ideas to the marketplace.

34. ASIAeconomic UNDERSTANDINGS Entrepreneurs must be willing to take risks, and often share risks with others by borrowing money from a bank or wealthy investor to get their ideas started. Entrepreneurs are valuable because they introduce innovation and help economies adapt to the changing conditions in our world today.

35. ASIAeconomic UNDERSTANDINGS The rapid pace of growth and the huge population in Asian countries offer excellent opportunities for entrepreneurs. Entrepreneurship is rising dramatically in India and China. India has a particularly high rate of business owners with training and facilities, especially in rural areas.

36. ASIAeconomic UNDERSTANDINGS In China, private business is the fastest growing segment of the economy. China’s government helps fund small business development and welcomes investment from foreign countries.

37. ASIAeconomic UNDERSTANDINGS Entrepreneurship in Japan In contrast, Japan has one of the lowest rates of entrepreneurship among the world’s leading economic powers. Japanese entrepreneurs face difficulties in getting loans from banks and there is little training available on how to run a business.

38. ASIAeconomic UNDERSTANDINGS In addition, Japanese companies typically guarantee lifetime employment to their employees. The Japanese like this job security. They also take great pride in their position in a company and often view entrepreneurship as a risky job choice.