Transcript japan korea vietnam

Economics & Politics of Asia
Unit 3 of Asia
 Shoguns were very powerful military generals
 Samurai Warriors were Japan's warriors from its
military.
•To protect Japan from outside influences, the Tokugawa
introduced a policy of national isolation.
•In 1639, the Tokugawa closed Japan to all foreigners except
the Dutch and the Chinese who were permitted to trade at
Nagasaki
•At the same time, laws were issued that prohibited any
Japanese from going to a foreign country for any reason
•The penalty for violating this order was death.
•Japanese who were not in the country were not permitted to
return to Japan.
Around the year 1800 European influence in Asia and the
Pacific increased a great deal.
By the mid- 1800’s much of Asia had come under control
of European nations.
If US ships were wreaked and sailors were captured in
Japan, they were often jailed and beat up which ticked
off the US
4. So the US wanted
to “Open Up
Japan”
In 1852, the US government sent a naval expedition to Japan
under the command of Commodore Matthew Perry; Perry
believed that
a. the US should expand through the Pacific Ocean due to
Manifest Destiny (God said that the US should spread its
influence over the world)
b. the desire to have shipwrecked sailors and all
Americans treated fairly and well
c. the US wish to expand
trade for economic gain and
increased political power
d. desire by the US to
set up a coaling
station for its ships
•The arrival of the US ships in Tokyo in 1853 frightened the
Japanese who had never seen steamships before; many
panicked and moved out of Tokyo
•The Emperor and the Tokugawas wished to maintain a
policy of separation but they realized that Japan was
helpless against modern military strength of the US
and that it was not possible to maintain Japanese
isolation.
•The next year Japan gave in to
he US demands
•Soon Japan had to open-up to
the rest of the world and
the Tok’s looked very weak.
t
•Japan suffered from low tax collections so the samurai
could not be paid so it ended their role in Japan
•People became very unhappy with everything in Japan and
demanded change.
•In 1868 the Emperor abolished the
of the Tok’s
•So started the Meiji restoration
•Meiji means “enlightened rule”
shogunate
Meiji Restoration
 When the Meiji restoration period ended in 1912
Japan had a Constitution with a Parliament, a
highly educated population , and had
established a rapidly growing industrial sector
based on the latest technology
 With a powerful army and navy to protects its
interests.
Japan flexes its military
muscle
 Japan wants to build its empire. This begins in the early
1900’s.
 In 1905 the Russo –Japanese war ended with a sound
beating of Russia by Japan and Japan capturing the
Port Arthur naval base on the coast of China.
 This gives japan the confidence to seek other areas like
the Koreas and Manchuria.
 Japan sees the Koreas and Manchuria as areas for
industrial and agricultural expansion.
 Japan Annexes the Koreas in 1910, (Takes control of )
 and then sets its sites on trying to occupy China in the
area of Manchuria (Northeast part of China/Russia)
Japan Annexes Korea
Japan Is a Player in China – End Tues
1. Since Japan was very small for its population, Japan needed
more room and China was their main target.
2. China had all the raw materials that Japan needed.
3. In 1932 Japan took Manchuria in northern China
4. Japan left the League of Nations in 1933
5. League of Nations – A predecessor of the United Nations,
aimed at securing international security. It was created
after World War I in an effort to hold countries
accountable and maintain peace, but the US never
joined.
In 1937 Japan went to war with China in an
effort to assert its dominance in Asia
Its soldiers committed atrocities on the Chinese.
Atrocities – now punished as war crimes,
war atrocities include various kinds
of torture.
Japan also wanted SE Asia for more raw
materials like oil and rubber
The military's influence kept growing until General Hideki Tojo ruled the
country in 1941.
Japan’s military glorified war.
Only the US stood in the way of Japan’s expansion
The US cut exports – like oil - to Japan and declared an embargo.
Embargo – a decision by one country to eliminate all exports to and
imports with another country
•
On Dec. 7th, 1941, the Japanese
launched a surprise attack on
the US bases in the Pacific at
Pearl Harbor, Hawaii
•
The Japanese also struck at the
Europeans in SE Asia
•
The Japanese invaded many
areas at first, but after the US
recovered, they were in for a
long war, which they could not
handle.
•
4. In 1945, Japan armies were
defeated in the Pacific and its
home islands blockaded and
under attack, Japan prepared for
an all out invasion by US forces
Despite great loses in men and
equipment, Japan
continued to fight savagely.
US fighter pilots also fought on
the side of the Chinese of
which they called
themselves the “Fighting
Tigers.”
The US flew supplies over the
Himalayas to help the
Nationalist Chinese fight
against Japan
One by one, the US began recapturing islands from the Japanese
The US became convinced that only a direct invasion of Japan would
lead to an end to the war.
The US estimated that it would lose 1 million men in the invasion
•In 1942, the US government launched a project to produce the first
atomic bomb.
•Physicist J. Robert Oppenheimer guided the design and building of the
bomb.
•Manhattan Project scientists tested the
first bomb on July 16, 1945, near
Alamogordo, New Mexico.
•. however, the US had just tested an
atomic bomb and on Aug. 6 and 9,
the first atomic bombs were
dropped on Hiroshima and Nagasaki.
•On Aug 15 Japan surrendered.
•Emperor Hirohito claimed that he was not
divine.
Hiroshima – August 6, 1945
70,000 killed
immediately.
48,000 buildings.
destroyed.
100,000s died of
radiation poisoning &
cancer later.
US Occupation-MacArthur
Does not try Hirohito for war
crimes because he is a
popular figure for the
people of Japan.
Begins food relief efforts for
the people of Japan at the
cost of over a million dollars
a day.
Helps set up a democracy by
helping draft a US style
constitution-Hirohito is a
figure head but has no real
power.
Insist that Japan be allowed
into trade alliances.
•The Allies, under the command of
US General Douglas
MacArthur, oversaw Japan
and the drafting of a new
constitution after WWII.
•The new constitution established a democratic government,
reduced the size of Japan’s military to a defensive force, and
allowed for a modified version of the emperor.
•It also guaranteed certain human rights and extended women the
right to vote.
•In 1951, Japan became independent again.
•However, it kept a close relationship with the US.
•The US poured lots of money into rebuilding Japan and helped it
grow economically.
•Today, Japan is one of the wealthiest and economically strongest
nations in the world. End Wed
Outcomes for Japan
Japan has a modern economic
miracle.
Best educated work force in
the world.
Women granted rights
Old power structure, and class
system broken down and
replaced.
Peasants could and did own
property.
Democracy still reigns to this
day.
Background…
 Korea had been a unified
country since the 7th
century.
 During the 19th century,
Imperial Japan began an
occupation of the Korean
Peninsula which lasted
until the end of WW II.
 At the close of World War
II, forces of both the
Soviet Union and the
United States occupied
the Korean peninsula.
Korea - 1945
 The Soviets imposed a
communist government
on North Korea, resulting
in the formation of the
Democratic People's
Republic of Korea in 1948,
 The U.S. imposed a
nationalist/capitalist
democracy on South
Korea, resulting in the
formation of the Republic
of Korea in 1948.
Post-War Plans…
 Initially, it was the intention
of both sides to establish a
stable and unified Korea in
order to withdraw their
military forces from the
area.
 However, neither the Soviet
Union or the U.S. wanted
the peninsula to fall into the
other's hand.
 The division of Korea that
ensued set the stage for a
civil war.
Prelude to War
 North Korean General
Secretary Kim Il-Sung
was intent on reuniting
the peninsula under
communism.
 An offensive against the
South was planned
 On January 30, 1950,
Stalin, via telegram,
informed Kim Il Sung that
he was willing to help
Kim in his plan to unify
Korea.
Stage 1: North Korea attacks
 1st Phase of Conflict
 June 25, 1950
 North Korea launches a
surprise attack against
South Korea triggering the
Korean War.
 By the night of June 28,
Seoul (capital of South
Korea) had fallen and the
South Korean forces were
in disarray.
United Nations Involvement
 The United Nations Security
Council called for an immediate
end to hostilities.
 When its further demand that North
Korea withdraw forces from the
southern half of the Korean
peninsula fell on deaf ears, the UN
Security Council recommended
that members of the United
Nations join forces to repel the
attack.
 Twenty-one nations agreed to
contribute arms, money, medical
supplies, and/or troops to rid
South Korea of the Communist
aggressor.
United Nations Force
 Gen. Douglas MacArthur
was put in charge of the
U.N. Command, which
included combat and
medical units from 22
nations.
 The United States
provided 50% of the
ground forces (South
Korea provided most of
the remainder), 86% of the
naval power, and 93% of
the air power.
 End Thurs
 Japan Quiz Mon
Stage 2: Americans pushed to
the Pusan Perimeter
 Unable to slow the enemy
advance, the Americans
and South Koreans
fought desperate
delaying operations,
buying time with blood as
more American units
were rushed to Korea.
 By the end of July 1950,
the North Koreans had
pushed the U.N. forces to
the southeast corner of
the peninsula, where they
dug in around the port of
Pusan.
Stage 3: Inchon
 MacArthur completely
changed the course of the
war overnight by ordering
an amphibious invasion at
the port of Inchon, near
Seoul.
 The Americans quickly
gained control of Inchon,
recaptured Seoul within
days, and cut the North
Korean supply lines.
 American and ROK forces
broke out of the Pusan
Perimeter and chased the
retreating enemy north.
Stage 4: Approaching the Yalu
 Despite warnings from the
Chinese that "American
intrusion into North Korea
would encounter Chinese
resistance," MacArthur's
forces continued to push
north.
 On October 25, 1950,
however, things turned
ominous. The Chinese
army, which had been
massing north of the Yalu
River after secretly slipping
into North Korea, struck
with considerable force.
Stage 5: An entirely new war
 Roughly 180,000 Chinese
troops shattered the right
flank of the US Eighth
Army in the west, while
120,000 others threatened
to destroy the X Corps
near the Chosin
Reservoir.
 On November 28, a
shaken MacArthur
informed the Joint Chiefs,
"We face an entirely new
war."
Stage 6: Stalemate
 Beginning January 15, Ridgway
led the U.N. in a slow advance
northward, in what his troops
began to call the "meatgrinder."
 Inflicting heavy casualties on
the Chinese and North Koreans,
the U.N. re-recaptured Seoul.
 In the meantime, General
MacArthur had been steadily
pushing Washington to remove
the restrictions on his forces.
 Not only did Truman decline for
fear of widening the war, but he
fired MacArthur, who had been
publicly challenging him for
months, for insubordination on
April 11.
Ceasefire Agreement
 The Korean War end, when an armistice was
signed on July 27, 1953.
 The armistice was only ever intended as a
temporary measure and provided for:
 A suspension of open hostilities
 A fixed demarcation line with a four kilometer (2.4 mile)
buffer zone - the so-called demilitarization zone
 SEE next slide
 A mechanism for the transfer of prisoners of war.
Korean War
Casualties
400000
350000
300000
250000
200000
Wounded
Killed
150000
100000
50000
0
USA
North South China
Korea Korea
•Today, tensions remain high between North and South
Korea.
•Capitalism and democracy have allowed South Korea
to thrive as a wealthy, modernized society.
•Meanwhile, North Korea is one of the poorest nations in
the world.
•Its strict communist regime pours most of the nations
resources into its military
rather than on efforts to
modernize and benefit the
population.
•End Fri
•For 40 years, North Korea relied on its two giant neighbors,
the Soviet Union and China, for political, economic, and
military assistance.
•in 1991, the Soviet Union broke up and the new country
Russia broke off ties with the North
•China ticked off the North as they became more friendlier to
the South
•North Korea has lived in isolation since its independence.
•TVs and radios are built so they only receive North Korean
stations and not South Korean stations.
•The government was afraid that the people might learn new
ideas
•Only the government has computers
•North Korea was ruled by a dictator, Kim Il Sung
until his death; his son, Kim Jong Ill ruled until 2011.
•the North has had several droughts and many
people have died of starvation
•North Korea is believed to have several nuclear
missiles able to reach the South and Japan.
The Vietnam
War
1954 - 1975
 France controlled “Indochina” since
the late 19th century
 Japan took control during World
War II
 With U.S. aid, France attempted
re-colonization in the postwar
period
 The French lost control to
Ho Chi Minh’s Viet Minh
forces in 1954 at Dien Bien
Phu
 President Eisenhower declined to
intervene on behalf of France.
 International Conference at
Geneva
th
 Vietnam was divided at 17
parallel
O Ho Chi Minh’s nationalist
forces controlled the North
O Diem, a French-educated,
Roman Catholic
claimed control of the
South
 A date was set for democratic
elections to reunify Vietnam
 Diem backed out of the
elections, leading to military
conflict between North and
South
 End Mon. Korea Quiz Tues
 Repressive dictatorial rule by Diem
 Diem’s family holds all power
 Wealth is hoarded by the elite
 Buddhist majority persecuted
 Torture, lack of political freedom
prevail
 The U.S. aided Diem’s government
 Ike sent financial and military aid
 675 U.S. Army advisors sent by 1960.
 Kennedy elected 1960
 Increases military “advisors” to
16,000
 1963: JFK supports a
Vietnamese military coup d'état
– Diem and his brother are
murdered (Nov. 2)
 Kennedy was assassinated just
weeks later (Nov. 22)
 Remembers Truman’s “loss”
of China  Domino Theory
revived
I’m not going to be
the president who
saw Southeast Asia
go the way China
went.
 Advised to rout the communists
by Secretary of State, Robert
S. McNamara
 Tonkin Gulf Incident  1964
(acc. to Johnson, the attacks were
unprovoked)
 Tonkin Gulf Resolution

“The Blank Check” *
600,000
500,000
400,000
U.S. Troops
300,000
200,000
100,000
1961 1963 1964 1965 1966 1967 1968
0
 No territorial goals
 Body counts on TV every night
(first “living room” war)
 Viet Cong supplies over the
Ho Chi Minh Trail
 1965: Sustained bombing of North Vietnam
 Operation Rolling Thunder (March 2, 1965)
 1966-68: Ongoing bombing of Hanoi
nonstop for 3 years! Esp. targets the
Ho Chi Minh Trail.
 Downed Pilots: P.O.W.s
 Carpet Bombing – napalm
 Vietcong:



Farmers by day; guerillas at night.
Very patient people willing to accept
many casualties.
The US grossly underestimated their
resolve and their resourcefulness.
The guerilla wins if he does not lose, the
conventional army loses if it does not
win.
-- Mao Zedong End Tues
 N. Vietnamese Army + Viet Cong
attack South simultaneously (67,000
attack 100 cities, bases, and the US
embassy in Saigon)
 Take every major southern city
 U.S. + ARVN beat back the offensive
 Viet Cong destroyed
 N. Vietnamese army debilitated
 BUT…it’s seen as an American defeat
by the media
The Tet Offensive,
January 1968
 Domestic U.S. Reaction:
Disbelief, Anger, Distrust of
Johnson Administration
 Hey, Hey LBJ! How
many kids did you
kill today?
Johnson announces (March, 1968):
…I shall not
seek, and I will
not accept, the
nomination of my
party for another
term as your
President.
 Disproportionate representation of
poor people and minorities.
 Severe racial problems.
 Major drug
problems.
 Officers in combat
6 mo/In rear 6 mo.
Anti-War
Demonstrations
Student Protestors
at Univ. of CA
in Berkeley, 1968
Democratic Convention
in Chicago, 1968
 Nixon’s 1968 Campaign promised an
end to the war: Peace with Honor
 Appealed to the great
“Silent Majority”
 Vietnamization
 Expansion of the
conflict  The “Secret War”
 Cambodia
 Laos
 Agent Orange
(chemical defoliant)
 Conditions:
1. U.S. to remove all troops
2. North Vietnam could leave troops
already in S.V.
3. North Vietnam would resume war
4. No provision for POWs or MIAs
 Last American troops left South
Vietnam on March 29, 1973
 1975: North Vietnam defeats South
Vietnam
 Saigon renamed Ho Chi Minh City
The Fall of Saigon
South Vietnamese
Attempt to Flee the Country
The Fall of
Saigon
April 30, 1975
America Abandons Its Embassy
End Wed
The Fall of
Saigon
North Vietnamese
at the Presidential Palace
A United Vietnam
Formerly Saigon
 Of the 2.7 million Americans that
served in the Vietnam war…
 300,000 were wounded in action
 75,000 were disabled
 Of the casualties listed on The
Wall, approximately 1,300 remain
missing in action
 58,129 were killed
 The average age was 19
 On the Vietnamese side it is
estimated…
 1.1 million North Vietnamese
and Viet Cong (Southern
resistance soldiers) were killed
 Over 2 million North and South
Vietnamese citizens were
killed
2,583 American
POWs / MIAs
still unaccounted for today.
And
in the End….
Ho Chi Minh:
If we have to fight, we
will fight. You will kill
ten of our men and we will
kill one of yours, and in the end it
will be you who tires of it.
•Before long, war broke out
between North and South
Vietnam.
•The US sent military advisors and
eventually troops to help the South
Vietnamese resist communist forces.
•The US feared that communist would spread throughout all
of Eastern Asia if South Vietnam fell (the Domino Theory).
•in 1964 US ships were supposedly attacked by the North in
the Gulf of Tonkin in 1964
•US president Johnson got a blank check from congress to
fight back
•Under this treaty, the US pulled out its remaining troops,
and South and North Vietnam agreed to exist peacefully
alongside one another.
•Soon after the US troops left, however, the communist
began their fight again.
•In April 1975, the South Vietnamese capital of Saigon
fell.
•After decades of struggle, the Communist finally had all
of Vietnam in their grasp.
•since Cambodia is next to Vietnam it got involved in the war;
both north and US used it as target practice
•after the war and with Cambodia in chaos, Pol Pot took over
as a communist
•he started the Killing Fields as everyone was force to move to
the countryside as all cities were emptied.
•all opposition was killed.
•after 4 years, 2 million out of 6 had been killed
A confederation government system is one in which the local
governments hold all of the power and the central government
depends on the local governments for its existence
The central government has only as much power as the local
governments are willing to give
The United Nations is a good example of a confederation
The United Nations can only offer advice and assistance when
the member nations agree to cooperate
Examples of confederations that can be found among the
countries of Asia include the Association of Southeast Asian
Nations (ASEAN)
This organization is a regional group organized to help the
member countries cooperate on economic matters, encourage
cultural exchanges, and to help keep peace and stability in the
region End Thurs – Nam Quiz Mon
An autocratic government is one in which the ruler has absolute
power to do whatever he wishes and make and enforce whatever
laws he chooses
Individuals who live under autocratic governments do not have
any rights to choose leaders or vote on which laws are made and
put into practice
Some autocratic governments may allow the people rights in
certain areas like managing local affairs, but the central
governments keeps control of all the most important aspects of
the country’s life
People usually have little or no power
to use against the government if they
disagree with decisions that government
or ruler has made
The communist government of North Korea is an example of an
autocratic government
Kim Jong-Un holds the office of premier and heads the National
Defense Commission, the two most powerful positions in the
government
He rules North Korea as an autocratic dictator
A presidential form of democratic government has a president,
or chief executive, that is chosen separately from the legislature
The legislature passes the laws, and it is the duty of the
president to see that the laws are enforced
The president holed power separately from the legislature, but
he does not have the power to dismiss the legislature or force
them to make particular laws
The president is the official head of the government
The legislature does not have the power to dismiss the
president, except in extreme cases when the president has
broken a law
The president is BOTH the lead of state and the head of the
government
One difference between a presidential and parliamentary
system of government is that a prime minister is a member of a
parliament while a president is in a separate branch of the
government
In a presidential system, the president serves for a set period of
time (in the US, a president can serve 2 four year terms)
On the map below, Presidential countries are in blue – including
Asian countries like South Korea, Philippines, and Indonesia
Before World War II, the country of Japan was a monarchy
It was ruled by a hereditary emperor named Hirohito
The people believed him to be descended from the Sun
He was thought to be a god, and few in the country had ever
seen him
After Japan was defeated in World War II, the US helped the
Japanese reorganize their government as a constitutional
monarchy
The government of Japan has a unitary system of government
It is a constitutional monarchy (a monarchy in which the powers
of the ruler are restricted to those grated under the constitution or
laws of the nation)
The Emperor of Japan is head of state and is a symbol of the
country with no political power
This means that he has ceremonial duties, but he does not take
part in the day-to-day politics of the country
The power in the Japanese government is in the hands of the
Japanese Diet, a two-house legislature that is elected by the
Japanese people
The government is led by a prime minister and a
cabinet of advisors
This was created in 1947
The prime minister is chosen by an election of the members of
the Diet
All Japanese citizens over the age of 20, including women, are
guaranteed the right to vote for the members of the Diet
The constitution also includes a Bill of Rights, spelling out the
basic freedoms that all Japanese citizen may enjoy
Literacy, or the ability to read and write, has a big effect on the
standard of living of a country
Those who cannot read or write have a very difficult time finding
decent jobs
Lack of education also prevents many young people from
becoming the engineers, doctors, scientist, or entrepreneurs that
modern economies need in order to bring improvements to their
countries
In many parts of the world, education is only available to those
who can afford to pay for it themselves
In those countries, the literacy rate is often quite low
Countries that have stronger economies usually make money
available so that anyone who wants an education can go to school
120
Literacy Rates in Select Asian Countries
100
% Literate
80
60
Literacy - M
40
Literacy - F
20
0
China
India
Japan
S. Korea
Vietnam
Country
End Fri – Vietnam Quiz on Monday
US
One way to measure the standard of living is the Gross
Domestic Product, or GDP
The GDP is the value of all goods and services produced within
a country in a given year and converted into US dollars for
comparison
When divided into a value per capita (or per person), it can be
used as a measure of the living conditions in a country
The higher
the GDP value,
the better the
living conditions
in the country
Gross Domestic Product (per capita) for Asian Countries
Japan has one of the most technologically advanced economies
in the world
Only the US and China have economies that are as large, and
in China’s case, they are ahead of Japan in large part because of
the size of the countries population (1.3 billion vs. 110 million for
Japan)
The Japanese government has a close and cooperative
relationship with major industries in Japan and the Japanese
people traditionally have a strong work ethic
In addition, Japan spends very little on maintaining a military, a
restriction that has been in place since the end of World War II
Japan is able to invest more money in industry and technology
because they do not need it for the military
There is some farming in Japan, but because there is so little
arable land (suitable for farming), crop[s are often planted in
terraces carved out of hillsides
The government often buys up farm goods to keep the prices
high enough for farmers to make a profit
They also do not let foreign countries sell certain farm products
in Japan if those products will compete with Japanese farm goods
Japan is one of the worlds leaders in the production of cars and
electronic equipment, two types of products that require constant
updates in production methods and use of new technologies
An educated workforces is essential to remain successful and
keep up with world demand
Industrial production and work in providing services account for
almost 98% of Japan’s GDP
Japan has very little farmland and few natural resources
For that reason, the country must import raw materials and food
The need for industry and for world trade also means a welleducated work force is an absolute necessity
Japan must also import all of its oil
One of Japan's largest industries is the fishing industry
Because so much food must be imported, the sea is a valuable
resource for the Japanese
Japan has one of the most highly educated populations in the
world
Competition for places in high school and college is hard, and
Japanese students must be able to pass very difficult exams to
earn a chance to go on to a higher level
This same effort goes into the Japanese workplace as well
Companies in Japan have traditionally expected their
employees to work long hours, but also to be proud of the success
their hard work will bring
The Japanese government helps companies decide what
products will sell best on the global market
The government also protects Japanese industries by setting
tariffs on imported goods that might compete with products made
in Japan
These tariffs are taxes placed on imports
that make them more expensive than the
Japanese products
The best example of a command economy in
Asia today is North Korea
In that country, the government makes all
economic decisions
The government owns nearly all the important
factories and industries
North Korea has one of the least open
economies in the world today
The Communist Party controls the government
and the economy, through the majority of power rests in the hands
of Premier Kim Jong-Un
Agriculture in North Korea does not produce enough food to
feed the population
Farms are organized into cooperatives that are owned by the
government
The farmers are told what to grow, through some do manage to
have small gardens
In the 1990s, North Korea had several years of poor harvests
and as a result, about 1 -2 million people starved
Kim Jong-Il has tried to build up North Korea’s industry in recent
years
The country does have some rich mineral resources like coal
and iron
The production of steel and machinery are leading industries in
the country as well as some production of textiles
End Mon
The government has also worked in recent years to develop
nuclear power plants (along with nuclear missiles)
One reason for the difficulty in correcting many of the economic
problems facing North Korea is that the government has spent
millions on the military rather than investing the money in other
aspects of the North Korean economy
Because of the autocratic rule of Kim Jong-Il, the economic
situation in North Korea is likely to remain difficult for the time
being
Not every country can produce all of the
goods and services it needs
Because of this, countries specialize in producing those goods
and services they can provide best and most efficiently
They look for others who may need these goods and services
so they can sell their products
The money earned by such sales then allows the purchase of
goods and services the first county is unable to produce
In international trade, no country can be completely selfsufficient (produce all the goods and services it needs)
Specialization creates a way to build a profitable economy and
to earn money to buy items that cannot be made locally
The countries of Asia are very different in terms of how their
economies are organized
India has a lot of farm land, but the population is so large it is
often difficult to grow enough food for everyone
India has a booming industrial and technological economy
This specialization makes it possible for an economy as
enormous as that of India to focus on those businesses that are
the most profitable
China is much the same
Some areas of the country are almost all agricultural
Others have large cities and modern industries where they
specialize in making cheap consumer goods for the world market
Japan is a country with very few natural resources, so
specialized industries have been developed to earn money
needed to buy food and raw materials from other countries
North Korea has had many problems in their attempts to
improve the harvests on their farms
As a result, the North Korean government has had to turn to
industries that use the countries natural resources like iron and
coal in order to keep the economy going
Specialization allows countries to produce what they do best
and generate income to buy what they still need
Trade barriers are anything that slows down or prevents one
country from exchanging goods with another
Some trade barriers are put in place to protect local industries
from lower priced goods made in other countries
Other times trade barriers are created due to political problems
between countries
Trade is stopped until the political issues are settled
A tariff is a tax placed on goods when they are brought into
(imported) from one country to another country
The purpose of a tariff is usually to make the imported item more
expensive than a similar item made locally
This sort of a tariff is called a protective tariff because it protect
local manufacturers from competition coming from cheaper goods
made in other countries
A quota is a different way of limiting the amount of foreign goods
that can come into a country
A quota sets s specific amount or number of a particular product
that can be imported or acquired in a given period of time
A third type of trade barrier is called an embargo
An embargo is when one country announces that it will no longer
trade with another country in order to isolate the country and
cause problems with that country’s economy
Embargoes usually come about when two countries are having
political disputes
Embargos often cause problems for all countries involved
The US currently has embargos against Cuba, Iran, & North
Korea
$Most of the countries in Asia have their own type of currency
(money).
$In order for them to pay for goods as they trade with each other,
they have to establish a system of changing from one type of
currency to another
$This system is know as an exchange rate
$They also have to be able to exchange their currencies with
those used by other countries around the world
Country
Currency
Equivalent in US Dollars
US
Dollar
$1.00
India
Rupee
43 per dollar
China
Yuan
7.5 per dollar
Japan
Yen
110 per dollar
North Korea
Won
140 per dollar
Vietnam
Dong
16,000 per dollar
Human capital means the knowledge and skills that make it
possible for workers to earn a living producing goods or services
The more skills and education workers have, the better they are
able to work without mistakes and to learn new jobs as technology
changes
Companies that invest in better training and education for their
workers generally earn more profits
Good companies also try to make sure working conditions are
safe and efficient, so their workers can do their jobs without risk
Companies that have invested in human capital through training
and education are most likely to have profitable businesses and
more satisfied workers than companies that do not make these
investments
Countries where training and education are easily available
often have higher production levels of goods and services,
therefore higher gross domestic product, than countries that do
not offer these opportunities
Many of the countries of Asia have great differences in their
GDP
Countries such as Japan, China, and India, have made the
decision to invest in human capital (Japan since after WW II,
China since Deng Xiaoping, and India since 1991)
Capital goods (the factories, machines, and technology that
people use to make products to sell) are important to economic
growth.
Advanced technology and the organization of this technology
into factories where many workers can work together increases
production and makes the production more efficient
Producing more goods for sale in a quicker and more efficient
way leads to economic growth and greater profit
This greater profit leads to a higher GDP
Few countries in the world have made the investments in capital
goods that the country of Japan has made
Japan is a country with few natural resources; therefore, nearly
all of Japan’s GDP comes from industry and services
Technology and up-to-date training in the uses of that
technology are essential for the Japanese economy to continue to
grow
Japanese industry leads most countries in the world in the use
of robotics (assembling goods using mechanical techniques like
robots)
Many electronics and software products are put together with
robotics in Japanese factories
Japanese business men are always looking for more efficient
technology to keep their production levels high
Japanese workers are encouraged by their employers to make
suggestions for ways they feel products can be made and
businesses can be run more efficiently
Distribution of natural resources throughout Asia plays a major
part in determining the type of work people do and how
comfortable they are able to live
A natural resource is something that is found in the environment
that people need
Water, trees, rich soil, minerals, and oil are all examples of
natural resources
One of the most valuable resources in this part of the world is
rich farmland
All of the countries in Asia, with the exception of Japan, depend
on agriculture to feed rapidly growing populations
India and China have good supplies of coal – while this is an
important fuel and energy source, coal burning is a major
contributor of air pollution
Japan has very little in the way of natural resources – for this
reason, the country must rely on industry and trade to supply its
population with what it needs End Tues – Gov’t Econ Quiz Wed