Economic Systems in the United Kingdom, Germany, and Russia
Economic decisions in traditional economies are based on customs and beliefs. The United Kingdom has a mixed market economy with a focus on service industries, while Germany's economy is export-based. Russia's economy leans towards a command system. By comparing these economic systems, one can see how countries answer key economic questions differently. The mix of traditional, command, and market elements in these economies demonstrates the continuum of economic systems found globally.
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Bellringer 9/14 How are economic decisions made in a traditional economy?
How do the countries of the United Kingdom, Germany, and Russia answer basic economic questions? Standard: Standard: SS6E5c. Compare the basic types of economic systems SS6E5c. Compare the basic types of economic systems found in the United Kingdom, Germany, and Russia. found in the United Kingdom, Germany, and Russia. SS6E5a. Compare how traditional, command, and market SS6E5a. Compare how traditional, command, and market economies answer the economic questions of (1) what to economies answer the economic questions of (1) what to produce (2) how to produce (3) for whom to produce produce (2) how to produce (3) for whom to produce SS6E5b. Explain how most countries have a mixed SS6E5b. Explain how most countries have a mixed economy located on a continuum between pure market economy located on a continuum between pure market and pure command. and pure command.
Europe Economic Systems Continuum Activity
Use the Economic Systems of Europe Use the Economic Systems of Europe Graphic Organizer to record your information Graphic Organizer to record your information
United Kingdoms Mixed Market Economy Service industries like banking, insurance, and Service industries like banking, insurance, and business services account for most of the UK s business services account for most of the UK s gross domestic product gross domestic product Over the decades, the government has turned Over the decades, the government has turned over many state over many state- -owned companies to private owned companies to private ownership setting up free market competition ownership setting up free market competition In short, the United Kingdom has a mixed market In short, the United Kingdom has a mixed market economy because some of its economy is driven economy because some of its economy is driven by producers, consumers, and markets while by producers, consumers, and markets while other aspects of its economy are controlled by other aspects of its economy are controlled by the government the government
Germanys Mixed Market Economy An export An export- -based economy focused on manufacturing based economy focused on manufacturing and products [relies on global markets] and products [relies on global markets] There is also still an issue with updating the Eastern There is also still an issue with updating the Eastern German economy to compete and operate equally German economy to compete and operate equally with Western Germany with Western Germany [Western Germany invests money [Western Germany invests money in Eastern German states to help modernize and update in Eastern German states to help modernize and update factories and production lines. West Germany had to bring factories and production lines. West Germany had to bring East Germany s command economy into its market economy] East Germany s command economy into its market economy] Germany s economy combines a market system, Germany s economy combines a market system, some government control, and even social welfare some government control, and even social welfare where help is given to the poor where help is given to the poor
Russias Mixed Market Economy Russia has struggled as it transitions from a Russia has struggled as it transitions from a command economy under the Soviet Union to a command economy under the Soviet Union to a mixed market economy today mixed market economy today Many government Many government- -owned companies are being sold owned companies are being sold to private businesses, but the Russian government to private businesses, but the Russian government is still largely involved with many aspects of the is still largely involved with many aspects of the economy economy Russia faces financial problems and huge costs to Russia faces financial problems and huge costs to improve its old plants and industries to be more improve its old plants and industries to be more efficient efficient
HAVE TO HAVE QUESTIONS 1.) The economic systems used in: Russia 2.) The economic system used in Germany 3.) The economic system used in the UK 4.) Who makes the decisions in a traditional economic system 5.) Who makes the decisions in a Command economic system 6.) Who makes the economic decisions in a Market economic system 7.) Question about mixed economic systems
Think, Pair, Share: Think, Pair, Share: Answer the question on the bottom of your Answer the question on the bottom of your graphic organizer. graphic organizer.
Explain why the United Kingdom and Germany are closer to the market side of the continuum even though all three countries are identified as a mixed market economy. The economic continuum is based on The economic continuum is based on government control. More government control government control. More government control means the closer a country is to a command means the closer a country is to a command economy. Less government control means the economy. Less government control means the closer a country is to a market economy. closer a country is to a market economy. There is more government control of the There is more government control of the economy in Russia than in Germany or the economy in Russia than in Germany or the United Kingdom; therefore, Russia lies closer to United Kingdom; therefore, Russia lies closer to the command side of the continuum. the command side of the continuum.
