Chapter 3Section 2

Political and Economic Systems

• Two important traits of any culture. – Political Systems– Economic Systems

• Governments reflect beliefs about – Authority– Independence– Human rights.

• Economic systems reflect people’s ideas about the use of – Resources – Distribution of wealth.

The World’s Countries• Nearly 200 independent countries. • Vary greatly in…– Size– Military Power – Natural Resources– Economic Importance

**** Each country has 4 characteristics that define it as a country****– Territory– Population– Sovereignty – A government

Territory • Includes land, water and natural resources within a

country’s boundaries. • Countries range in size.• Resources = wealth.• Several factors play a key role in boundary

separation. Ex. Rivers, mountains, wars, treaty• Geographic factors often influence a nation’s

power to control territory.

US compared to Russia

Notice the size of the United States is smaller than Russia

Natural Resources

=Saudi Arabia

Boundary separation

Recall boundaries shift over time due to wars, treaties and river and mountain boundaries.

Notice the mountains and the recall the earlier effect on boundary lines it had.

Population• Citizens of a nation are assured protection by

their government. • Population varies. Some countries are small

but densely populated. • Some contain wide diversity.

Sovereignty• A sovereign country has the power to – act independently– deal equally with other free countries – protect its territory and citizens.

** Geographic factors can help a nation defend and maintain its sovereignty. Ex. United Kingdom, Switzerland, Russia

Types of GovernmentStructures

• Unitary System = One central government runs the nation. (Japan)

• Federation = Some powers are given to national government and other powers are reserved for local governments. (USA)

• Confederation = Smaller political units keep their sovereignty and give the central government limited powers.

Government Authority• Authoritarian Governments – Leader holds all,

or nearly all, political power. – Dictatorship – Most common authoritarian govt.,

power is concentrated in a small group or even single person.

– Totalitarianism – Most extreme form of dictatorship. Govt. tries to control every part of society, politics, economy and people’s personal lives.

Gov. Authority continued…

• Monarchy = Throughout much of history, the most common kind of authoritarian govt.. - Monarchs inherit their positions by being born into the ruling family.

• Democracy = Any country in which the people choose their leaders and have the power to set government policy.

Types of Economic Systems • Traditional Economy – little surplus produced, little

need for markets where people buy and sell goods.

• Market Economy – gives greatFreedom to individuals and groups. (Capitalism)-Private individuals and groups make production decisions. (What? How much to make and cost?)-Decisions are influenced by laws of supply and demand. -Driven by individuals wants to increaseWell being.

Command Economy• Government decides what and how much to

produce, where economic activities will be located, and what prices will be charged for goods and services. (ex. Communism)– Production costs might be higher than consumer

cost.

Mixed Economy• Economic systems of some nations include a

mix of traditional, command, and market economies. (Ex. Socialism)

• Socialists believe that wealth should be distributed more equally and that everyone is entitled to certain goods and services.