south and east asian economies

ChinaChina

(1) What to produce?(1) What to produce? 40% of the Chinese economy is still based in 40% of the Chinese economy is still based in

state-run industries.state-run industries. 60% of the economy is based on the private 60% of the economy is based on the private

sector in where producers and consumers sector in where producers and consumers make the production decisions.make the production decisions.

ChinaChina

(2) How to produce?(2) How to produce? The many inefficiencies found in the state-run The many inefficiencies found in the state-run

industries, particularly in the area of industries, particularly in the area of agriculture, limit China’s growth.agriculture, limit China’s growth.

In the private market, the speed of economic In the private market, the speed of economic growth has caused Chinese officials to have growth has caused Chinese officials to have increasing difficulty monitoring consumer increasing difficulty monitoring consumer safety and environmental pollution. safety and environmental pollution.

ChinaChina

(3) For whom to produce?(3) For whom to produce? China requires food production to meet self-China requires food production to meet self-

sufficiency level for the nation and only the surplus sufficiency level for the nation and only the surplus may be exported. In reality, there is not enough may be exported. In reality, there is not enough proper storage of food to meet the self-sufficiency proper storage of food to meet the self-sufficiency requirement.requirement.

China exports a large amount of manufactured goods. China exports a large amount of manufactured goods. However, the expanding middle class in China is However, the expanding middle class in China is seen as a growth market for both Chinese and foreign seen as a growth market for both Chinese and foreign companies.companies.

Placed on the Continuum: China is slightly on the market side of center.

IndiaIndia

(1) What to produce?(1) What to produce? Since 1991, India has slowly allowed the Since 1991, India has slowly allowed the

markets to open up to private sector domestic markets to open up to private sector domestic and foreign businesses.and foreign businesses.

The majority of the population relies on The majority of the population relies on subsistence agriculture as a means of subsistence agriculture as a means of survival.survival.

There is a lot of bureaucracy and corruption There is a lot of bureaucracy and corruption involved in setting up and operating a involved in setting up and operating a business.business.

IndiaIndia

(2) How to produce?(2) How to produce? India is increasing its oversight of intellectual India is increasing its oversight of intellectual

and private property rights, but legal and private property rights, but legal challenges are fraught with bureaucracy.challenges are fraught with bureaucracy.

India has an increasingly educated workforce India has an increasingly educated workforce particularly in areas of engineering and particularly in areas of engineering and computer science.computer science.

A complex, corrupt, and hefty tax system can A complex, corrupt, and hefty tax system can sometimes make operating a business in sometimes make operating a business in India difficult.India difficult.

IndiaIndia

(3) For whom to produce?(3) For whom to produce? Food production is largely for domestic Food production is largely for domestic

consumers with many citizens producing food consumers with many citizens producing food mainly for their own family consumption.mainly for their own family consumption.

The software and business process The software and business process outsourcing and industries are rapidly outsourcing and industries are rapidly expanding export markets for private Indian expanding export markets for private Indian companies.companies.

Place on the continuum: India would be more to the market side of the continuum than China.

JapanJapan

(1)(1) What to produce?What to produce? Japan’s economy is primarily market driven Japan’s economy is primarily market driven

with supply and demand determining what with supply and demand determining what will be produced. will be produced.

The few industries that are highly The few industries that are highly government-controlled, such as agriculture, government-controlled, such as agriculture, have much lower productivity rates than have much lower productivity rates than those industries controlled by market forces.those industries controlled by market forces.

JapanJapan

(2) How to produce?(2) How to produce? Private businesses determine their own Private businesses determine their own

production processes in most of the economy.production processes in most of the economy.

JapanJapan

For whom to produce?For whom to produce? Japan’s population enjoys a high standard of Japan’s population enjoys a high standard of

living and creates a strong domestic market living and creates a strong domestic market for goods and services.for goods and services.

The efficiency of Japan’s production and its The efficiency of Japan’s production and its reputation for quality products/services has reputation for quality products/services has made it a major exporter.made it a major exporter.

Out of all four countries in this element, Japan would be the closest to the market side Of the continuum.

North KoreaNorth Korea (1) What to produce?(1) What to produce?

Although there have been some small market reforms Although there have been some small market reforms recently, the majority of legal economic activities are recently, the majority of legal economic activities are centrally controlled by the government.centrally controlled by the government.

Due to natural disaster and inefficient government-run Due to natural disaster and inefficient government-run industries, North Korea is a major recipient of food industries, North Korea is a major recipient of food and basic service aid from Non-Governmental and basic service aid from Non-Governmental Organizations (NGO) and foreign nations. The U.S. Organizations (NGO) and foreign nations. The U.S. provides the people of North Korea with a large provides the people of North Korea with a large amount of aid.amount of aid.

Like in many highly centralized economies, there is a Like in many highly centralized economies, there is a large underground economy that runs on a more large underground economy that runs on a more market based system.market based system.

North KoreaNorth Korea

For whom to produce?For whom to produce? Approximately one fourth of all domestic Approximately one fourth of all domestic

output is devoted to maintaining the military. output is devoted to maintaining the military. This severely limits the amount of goods and This severely limits the amount of goods and services that make it to the rest of the people services that make it to the rest of the people of North Korea.of North Korea.

North Korea produces natural resources and North Korea produces natural resources and manufactured goods for export.manufactured goods for export.

Placed on the continuum: North Korea Placed on the continuum: North Korea would be much more to the command side would be much more to the command side of the continuum than any of the other of the continuum than any of the other nations discussed. One of the most nations discussed. One of the most command economies in the world today.command economies in the world today.