Unit Three Economy Watch,Lead-in,Lead-in Discussion,Work in groups to match the national flags with the countries. Then choose a country to live in while justifying your group decision. India U.S. Ethiopia Singapore Brazil Switzerland,Lead-in Discussion,2. Identify some developed countries and developing countries from the world map.,Lead-in Discussion,3. Are you familiar with the following terms of economic system? Name a country / region for each category. Planned Economy / Command Economy Market Economy Mixed Economy,4. China has enjoyed strong economic growth for over three decades. What are the implications of its strong growth? Theres a favorable ripple effect throughout the economy. For consumers: - Income level Purchasing power Volume of spending Demand for products For manufacturers: - production revenue For suppliers - sales of equipments need for workers investment For distributors - business opportunities ,Lead-in Discussion,Text A The China Miracle Demystified,Structural Analysis,Part I Questions about Part I,Q1: What was Chinas economic situation like before 1979? China practiced planned economy. China was a poor, inward-looking country with low per capita income as well as trade dependence ratio.,Part I Questions about Part I,Q2: Why is the year of 1979 mentioned by the author as a dividing line in Chinas economic growth? In December 1978, the 3rd Plenum of the 11th Central Committee of CPC was held in China, at which the reform and opening-up policy was put forward. Since then, China has embarked on a journey of strong economic growth for over 30 years.,Part I Questions about Part I,Q3: What examples have been given to elaborate the China miracle of the past 30 years? High annual GDP growth rate; High annual growth rate in international trade; Increased income (now a middle-income country); Highest trade dependence ratio; The 2nd largest economy and the largest exporter of merchandise in 2009; Largest car market now; Shanghai: the busiest seaport by cargo tonnage.,The spectacular growth over the past three decades far exceeded the expectations of anyone at the outset of the transition, including Deng Xiaoping, the architect of Chinas reform and opening-up strategy. (Line 14, Para. 1) Chinas miraculous economic growth over the past 30 years was beyond what many people had expected at the beginning of its economic transformation. And Deng Xiaoping, who set the blueprint for Chinas reform and opening-up policy, was no exception.,Part I Sentence Interpretation,inward-looking (Para. 1) a. being enclosed or confined to the inside of something; being cut off from the outside world synonyms: closed; isolated example: The solution to global competition is fostering improved competitiveness rather than taking an inward-looking stance.,Part I Words and Expressions,miraculous (Para. 1) a. surprising or unexpected; being or having the character of a miracle synonyms: incredible; marvelous; amazing example: With the new management team, the company made a miraculous recovery from the labor-gate crisis.,Part I Words and Expressions,at the outset of (Para. 1) pp. at the start of; at the beginning of example: At the outset of her career she was full of optimism but not now.,Part I Words and Expressions,Deng Xiaoping Deng Xiaoping was the leader of China from 1978 to 1992. He is considered “the architect” of Chinas reform and opening-up policy. His goal at that time was to quadruple the size of Chinas economy in 20 years, which would have meant an average annual growth of 7.2 percent. Most people in the 1980s, and even as late as the early 1990s, thought that achieving that goal was a mission impossible. He is generally credited with developing China into one of the fastest-growing economies in the world for over 35 years and raising the living standard of hundreds of millions of Chinese.,Part I Notes,Q1. Three aspects have been focused to unveil the China miracle. What are they? (Para. 2) The reason for Chinas extraordinary performance in transition. The reason for failing to achieve similar performance by other transition economies. The insight of China miracle for other developing countries.,Part II Questions about Part II,Q2. What, in the authors point of view has contributed to Chinas strong growth in the past three decades? (Para.3-8) Chinas exploitation of the advantage of backwardness has allowed the country to emerge as the worlds workshop and to achieve extraordinary economic growth by reducing the costs of innovation, industrial upgrading, and social and economic transformation.,Part II Questions about Part II,Q3. Why didnt other transition economies perform equally well? (Para.9-12) During the transition from low-income agrarian economies to capital-intensive heavy industries, many developing countries introduced distortions and government interventions, leading to stagnation and social and economic cri