Modern Economies in a Global Age Chapter 2

Modern Economies in a Global Age Chapter 2 Section 4

Modern Economies Today’s Mixed Economies US- market oriented France, Sweden- more command oriented Namibia (Africa)- traditional with market-driven approach Modern Economies

Types of Mixed Economies Sweden Command France Mixed United States Market

Modern Economies Today’s Mixed Economies US- market oriented France, Sweden- more command oriented Trends in Modern Economies Move away from command elements: Privatization of resources Namibia (Africa)- traditional with market-driven approach Increasing globalization Modern Economies

Trend #1 Changes in Ownership • What does it mean to nationalize? Can you think of a time in American history when the government nationalized an industry? • Many countries are moving from a command system to a market system. In this process, government-owned industries have been privatized. What is the expected impact of this action?

Trend #2 Increasing Global Ties 1. 2. 3. 4. Opening of the world’s markets to trade Development of transportation Easy financial transactions International partnerships • • Shared distribution systems and manufacturing plants = greater efficiency, lower costs, greater profit Research and development costs are shared

Group Discussion • In your opinion, are there some goods, and/or services that should be publicly owned? If so, which ones? Explain your answer. • In what ways have your personal global ties increased in the last 10 years?