Globlal Economies and Finance

INDUSTRY• There are three levels of industry– Primary• Ppl work directly with raw materials

– Fishing– Farming ( subsistence or commercial)– Forestry– Mining

– Secondary• Ppl take the raw materials and create useful items

– Manufacturing– Construction

• Tertiary– Ppl provide a service• Utilities• Transportation• Communication• Financial• Government• Medical• Entertainment

Industrial Revolution

• Changed how items were made• Occured in the 1800’s• Introduced a new type of economy

• Hand-made by a few skilled craftsmen

• Family business• Start to finish operation• Simple hand tools• High quality product• Limited supply• Made to specifications

– wait• Simplier lifestyle• Expensive

• Mass produced by large numbers of semi-skilled

• Corporation owned• Limited exposure to full

process• Company owned

machines and tools• Lesser quality• Lots of choices – walk

away with it• Materialistic• Cheaper

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• The Industrial Revolution created a unique situation. . . Who gets the money?

• The answer to this question are three basic economic systems found around the world .

• Capitalism• Socialism• Mixed ( 1989)

Capitalism

• Capital means money• The system known as capitalism is also called a free market system• Capitalism is the oldest and most successful system• Characteristics:– Private or corporate ownership– Start up businesses, risk, success or failure, great wealth– Three social classes, rich, middle, poor

Socialism• There are several levels of socialism, the most

extreme is communism• The goal of socialism/communism is to make

everyone equal• Characteristics:– Government owns and controls industry– Profits go to government and distributed equally– Elimination of work ethic and competition

• Socialism/communism is unbiblical because– II Thess 3:10 Prov 3:27– I Tim 5:18 Prov 6:6

Pure Capitalism CommunismMixed

United States North KoreaChinaVietnamCambodiaLoasCuba