Study Guide…. Economics, Environment, and Government of Latin America
Economics (mixed is not a type but what most are) Type of Economy Command Market Traditional
Definition Government control of products and price (Cuba) Consumers make decisions; based on supply/ demand (Mexico is close) Based more on what your parents did; farming/ hunting and gathering
Specialization: Definition – depending on one resource/crop/product for economic success Give an example related to Georgia – We grow, harvest, process, and transport peanuts all over the country. Last year’s salmonella outbreak really hurt the industry as a whole and the economy of Georgia Do you think specialization encourages trade? Why or why not? Yes because when someone specializes in something then we can get it for a lower price
Trade Barriers Embargo Tariff Quota
Definition When you refuse to ship goods to a country for safety or political reasons A tax placed on goods brought into a country A limit on how many goods can be brought into a country.
Why do we have trade barriers? To protect our businesses; to make a statement about a political situation in another country – doesn’t work if they find another trading partner; to promote competition The United States is a member of NAFTA with Canada and Mexico. Tell whether the following points are positive or negative… Positive These 3 countries do not charge tariffs on imported goods. Negative The Chiapas in Mexico have difficulty selling their goods. Negative Some Americans are concerned that some U.S. businesses will move to Mexico because companies can pay their employees less.
Positive Large corporations can make a high profit. The monetary unit of the United States is the dollar . In Mexico the monetary unit is the peso. If you were on vacation in Cancun, how would you purchase souvenirs for your friends? You would need to exchange dollars for pesos.
Economic Term Human capital/resources Capital goods/resources GDP Entrepreneur Literacy rate Natural resource
Definition Value of the education and skills of your workers Factories, machines, buildings used to make products The value of your countries goods and services Someone who takes a risk to start a business The percentage of your people who can read/write Items found in nature that can be used for profit
Use the above terms to fill in the following blanks: Entrepreneur This is the person in charge of making sure a business is run successfully. Human capital If your country sees the importance of education, you probably have valuable workers. Natural resource This is important to the economy because if we have trees we can build homes, use the pulp for the production of paper, and supply many jobs for workers. GDP This will be high in a country if the government is concerned about educating their people and providing equipment for businesses to make goods. Capital goods These are important in Venezuela if they are going to drill for oil, refine, and then transport the finished product to other countries.
Environment: Issue Oil pollution Air pollution Deforestatio n
Country Venezuela Mexico Brazil
Reason for concern Oil spills, drilling equipment ruin environment Most people live in the valley area where pollution can’t escape People are using the rainforest and not replanting or protecting animal habitats
Government: Government Presidential Dem. Parliamentary Dem. Dictatorship
Leader elected by the people Leader elected by parliament Leader has complete control
Mexico/Braz il None on test; Jamaica Cuba
Distribution of Power
Federal: Def: divided between state and national
Unitary: Def: one central government for country
Ex: Brazil Ex: Cuba
Confederation: Def: regional gov’ts hold power. Ex: None in L. America