Political & Economic Systems

• What are four characteristics shared by

all countries?

• How do various types of governments/economic systems differ from one another?

Questions to ask yourself

Sovereignty Unitary System Federation Confederation Authoritarian Dictatorship

Totalitarianism

Monarchy Democracy Traditional Market

Economy Market Economy Command Economy

Key Terms

4 characteristics that define a country1. Territory2. Population3. Sovereignty4. Government

4 characteristics

Land, water & natural resources within its

boundary Russia = 6.5 million square miles Vatican = 0.17 square miles USA = 3.7 million square miles

Disputes over territory have led to many wars

Geographic factors = influence a nation’s power to control territory – Ex. Great Britain

Territory

Population does NOT determine the existence

of a country.

Canada & Australia = vast lands largely unpopulated

Japan & Netherlands = smaller - Densely populated

Population

A nation’s freedom from outside control A country that can rule itself by establishing

Own policies Its own course of action

A country that is entitled to act independently, deal equally with other foreign powers & protect its territory and citizens.

Sovereignty

Geographic Factors have led to benefits

Great Britain – Island Nations (separated by water from mainland Europe)

Switzerland – Surrounded by mountains

Geographic Factors have also led to disadvantages Belgium & Poland – easily passed over with

invasions Russia – been invaded many times but climate

allows independence (Napoleon & WWII)

Sovereignty

Government Structure:

Unitary System: If one central government runs the nation Great Britain & Japan

Federation: some powers are given to the central gov’t while other powers are reserved for local gov’ts USA

Confederation: smaller political units keep their sovereignty & give the central gov’t very limited powers

Types of Government

Authoritarian Gov’ts: The leaders hold all, or

nearly all the political power. Dictatorship – power concentrated into a small

group or even a single person. Use of military force to gain & exercise power Totalitarianism – Gov’t tries to control ALL aspects

of society, politics, the economy and personal live. HITLER - NAZI GERMANY, STALIN- THE SOVIET UNION

Monarchy – Kings & Queens, pharaohs, shahs, sultans inherit their positions by being born into ruling family

Government Authority

Any country in which people choose their

leaders and have the power to set gov’t policy

Some have set aside Authoritarian Gov’ts and settled on Democracies Germany & Japan Russia

Democracy

3 questions:

1. What (and how many)goods & services will be produced?

2. How will these goods be produced?3. How will the products and the wealth gained

from their sale be distributed?

Types of Economic Systems

Traditional Economy: when goods & services

produced are consumed in their own families or villages Where little surplus is produced – little need for a

market

Market Economy: Free Enterprise System – Gives great freedom to individuals & groups Govt’s only interaction is limited – protecting the public

– Ex. = Worker Health & safety and environmental pollution

Types of Economic Systems

Command Economy: When nearly all

economic decisions are made by a central government.

Decides: What will be produced How it will be produced How much will be produced Where it will be located The prices

Types of Economic Systems

Usually Socialist Nations:

The state should run some basic industries Transportation, communication, banking, coal

mining, & steel industry while private enterprise operates other parts of the economy.

Leads to high taxes in order to fund: Public housing, health care, child care, &

retirement pensions

Mixed Economy