1、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 devel
2、oping 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 EconomyMarket EconomyMixed Economy,4. China has enjoyed strong economic growth for over three decades. What are
3、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
4、- 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
5、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. S
6、ince 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 (
7、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
8、 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
9、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; isolatedexample: The solution to global competition is
10、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; amazingexample: With the new management team, the company made a m
11、iraculous 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 ofexample: 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 fr
12、om 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, thou
13、ght 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 unvei
14、l 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 t
15、he 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, indust
16、rial 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 disto
17、rtions and government interventions, leading to stagnation and social and economic crises. However, unlike China, they removed all distortions immediately while implementing liberalization, privatization and marketization at the same time, causing the collapse of many nonviable firms in private sect
18、ors and a contraction of GDP, high unemployment rate and acute social disorders.,Part II Questions about Part II,Q4. What lessons can be learned from the China miracle by other developing economies? (Para.13-16)They can adopt a dual-track approach like what China has taken, providing some transitory
19、 protections to nonviable firms to maintain stability but liberalizing entry into sectors in which they have comparative advantages to tap the advantage of backwardness in its technological innovation and structural transformation to achieve dynamic growth.,Part II Questions about Part II,1. The acc
20、eleration of growth was accompanied by a move of labor from agriculture to manufacturing and services. (Line 5, Para. 5)Accompanying the quick growth of economy is the transfer of laborers from the primary industry to the secondary and tertiary industries.,Part II Sentence Interpretation,2. Chinas e
21、xploitation 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.(Line 14, Para.8)By taking full advantage of its backwa
22、rdness, China has become the worlds manufacturing center and has achieved amazing economic growth through the cost reduction in innovation, industrial reengineering as well as social and economic transformation.,Part II Sentence Interpretation,3. The development of modern advanced industries was per
23、ceived as the only way to achieve rapid economic takeoff, avoid dependence on the Western industrial powers, and eliminate poverty. (Line 9, Para. 9)Developing modern advanced industries was regarded as the only means for those transition economies to boost their economic growth, to be independent f
24、rom Western industrial nations and to eradicate poverty.,Part II Sentence Interpretation,4. During the transition process China adopted a pragmatic, gradual, dual-track approach. (Line 1, Para.12)During its transition from command economy to market economy, China has adopted a practical, double-way
25、method.,Part II Sentence Interpretation,self-sufficient (Para. 5) a.able to provide for ones own needs without help from otherssynonyms: self-sufficing; self-sustaining example: Using traditional methods, poor farmers can be virtually self-sufficient.,Part II Words and Expressions,exploit (Para. 5)
26、v. make good use of; take advantage ofsynonyms: advantage; explore example: The president is hoping to exploit new opportunities within the good bilateral relationships.,Part II Words and Expressions,unleash (Para. 5) v.to make loose or free from constraints; to release or ventsynonyms: release; loo
27、seexample: The CEOs proposals unleashed a storm of protest in the company shareholders.,Part II Words and Expressions,trial-and-error (Para. 6) n.a method of reaching a correct solution or satisfactory result by trying out various means or theories until error is sufficiently reduced or eliminated.e
28、xample: He argued that all learning is a trial-and-error process that resembles biological evolution.,Part II Words and Expressions,tap (Para. 6) v. to draw from; to make good use ofsynonym: exploitexample: The Campbell Soup Company says it will try to tap into Japans rice market.,Part II Words and
29、Expressions,defy (Para. 10) v. to resist or confront with resistancesynonym: challengeexample: Its a devastating and barbaric act that defies all human civilizations.,Part II Words and Expressions,pervasive (Para. 10) a. spreading throughoutsynonym: permeatingexample: Globalization has posed a perva
30、sive impact upon peoples life.,Part II Words and Expressions,contraction (Para. 11) a.the act of decreasing (something) in size or volume or quantity or scopesynonym: cut; reduction; recession antonym: expansionexample: The recent contraction in Chinese manufacturing is the result of a tightening in
31、 credit markets.,Part II Words and Expressions,eradicate (Para. 15) v. to get rid of something completelysynonym: eliminate; wipe outexample: The Prime Minister has made a significant contribution to eradicating government corruption.,Part II Words and Expressions,inclusive (Para. 16) a.including mu
32、ch or everything; and especially including stated limits;synonym: comprehensive; all-over antonym: exclusiveexample: Now the governments task is to unwind the exceptional support given to the economy and push through the reforms needed to sustain fast and inclusive growth.,Part II Words and Expressi
33、ons,Industrial Revolution (Para.5) The Industrial Revolution (1750-1840) began in Great Britain and spread to Western Europe and the U.S. within a few decades. It was the transition to new manufacturing processes, from hand production methods to machines, new chemical manufacturing and iron producti
34、on processes. It also included the change from wood and other bio-fuels to coal. It marks a major turning point in history; almost every aspect of daily life was influenced in some way. In particular, average income and population began to exhibit unprecedented sustained growth.,Part II Notes,Michae
35、l Spence (Para.7)Michael Spence is an American economist and recipient of the 2001 Nobel Memorial Prize in Economic Sciences. He chaired the independent body “The Commission on Growth and Development” to examine various aspects of economic growth and development.,Part II Notes,foreign direct investm
36、ent (Para.8)A foreign direct investment (abbreviated as FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overse
37、as operations and intra company loans. In a narrow sense, foreign direct investment refers just to building new facilities.,Part II Notes,rent-seeking (Para.10)In economics, rent-seeking is spending wealth on political lobbying to increase ones share of existing wealth without creating wealth. The e
38、ffects of rent-seeking are reduced economic efficiency through poor allocation of resources, reduced wealth creation, lost government revenue, increased income inequality, and national decline. Current studies of rent-seeking focus on the manipulation of regulatory agencies to gain monopolistic adva
39、ntages in the market while imposing disadvantages on competitors.,Part II Notes,externality (Para.13)In economics, an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. A positive externality (also called “external benefit” or “external economy”
40、) is an action of a product on consumers that imposes a positive effect on a third party. A negative externality (also called “external cost” or “external diseconomy”) is an action of a product on consumers that imposes a negative effect on a third party.,Part II Notes,Text B A Game of Catch-up,Stru
41、ctural Analysis,Q1: Quarry Bank Mill is used as an example What does the author aim to tell us? (Para.1-3) The Industrial Revolution has greatly impacted the companys business. In addition, it has also established a global hierarchy in the world with the western world possessing more economic power
42、(such as Quarry Bank Mills outsourcing of their production to poorer countries).,Part I Questions about Part I,Q2: How has the financial crisis triggered the shift in economic power? (Para.4-8)On one hand, the rich world including America has been greatly impacted by the crisis, with scant economic
43、growth. On the other hand, poor countries have tried to take advantage of their backwardness to catch up quickly. In addition, during the financial crisis, developing countries bought government bonds from the rich world (and stored them as currency reserves) as insurance against future crises.,Part
44、 I Questions about Part I,Q1: How has the economic power changed according to the text? (Para.9-16)Before the Industrial Revolution, India and China were two biggest economic giants due to their large population. By 1870, Britain ranked 1st with the help of the Industrial Revolution. By the eve of W
45、orld War I, America had become No.1 and has remained its position ever since. Emerging countries (including China & India) have been developing much faster in recent several decades, posing threats to the rich nations including America.,Part II Questions about Part II,Q2: With emerging markets gaini
46、ng more economic power, there are some concerns related to it. What are they? (Para.17-20)The 1st worry is about direct competition for limited natural resources available as well as the special status and perks that come with being the issuer of a trusted international currency. The 2nd anxiety rel
47、ates to job security and pay, especially with the impact of outsourcing. The 3rd concern is that the emerging markets are prone to crises and unlikely to be sustained.,Part II Questions about Part II,Q:What is the authors attitude towards the transfer of economic power from rich countries to emergin
48、g markets? (Para.21-25)Neutral.Currently, theres a relative economic decline facing rich countries, but thats not an absolute fall in living standards. Therell be a devastating effect on the well-being of ordinary people if America loses its top-dog status as history proved this. No country or group
49、s of countries can stay on top forever. Theres a long way for emerging economies to leap from middle-income to reasonably rich.,Part III Questions about Part III,The use of public speaking in the form of oral presentations is common in higher education and is increasingly recognized as a means of assessment.However, effective public speaking can be trained. People can develop their public speaking skills by joining various training programs in which they are assigned exercises to improve their speaking skills.,
