1. Latin American Economics

2. What are Production, Distribution, and Consumption?
Production-the process of making a product
List two examples: Toys, Games, cars, Fruit
Distribution- who gets the product and how does it get to them
List two examples: trade, delivery, store, online, mail
Consumption- what is done with the product
List two examples: play it, drive it, eat it

3. What are the three basic economic questions?
What to produce?
How to produce?
For whom to produce?

4. What are the four types of Economies?
Market
Command
Traditional
Mixed

5. How does a command economy answer the questions?
What to produce?
The government decides what is needed by their citizens
How to produce?
The government decides how things will be produced, who will make the products and how much money they will earn
For whom to produce?
The government will decide how much of the product the citizens get and how much it will cost

6. How does a market economy answer these questions?
What to produce?
Entrepreneurs create new products and services
How to produce?
Business owners decide how much of the product is made and how much they will pay their employees
For whom to produce?
Business owners will advertise their product and set the price at what they believe people are willing to pay

7. The Economic Scale
Pure Market
Mixed
Pure Command

8. How does a traditional economy answer these questions?
What to produce?
Community, tribe, family, location, traditions and customs
How to produce?
Climate, community, tribe
For whom to produce?
The community shares

9. Government of Latin America Quiz
Brazil’s government leader is an elected President.
Mexico has a Prime Minister.
Cuba’s leadership is autocratic.
In Latin America no one is forced to vote by law.
Citizens have freedom of speech in Mexico and Brazil.
There are many political parties in Cuba.
You can speak out against the government in Cuba.
Brazil’s government is very similar to the U.S.’s.
Mexico has a federal government.
Cuba has a presidential system.

10. Enrichment
Which economic system do you think consumers would like the most?
Which economic system would be the worst for competition between producers?
A market economy has ___ ownership of property and resources? (private, government, or tribal)
Which economic system is found in agricultural societies?
Which is the most common economic system today?

11. Economy
What to produce
How goods are produced
How people get products
Traditional
Climate, traditions, culture, location
farming, hunting
Trade, sharing
Command
the government
government owned factories and farms
government distributes products
Market
Buyers and sellers
Private citizens, factories, technology
Store, samples, mail, ebay, craig’s list

12. New vocabulary Demand- what the buyers desire
Supply- goods made by the sellers
Wage- money paid for work
Nationalized- business owned by the government
Private-owned- business owned the citizens

13. What are the differences?
Pure Market
Pure Command
Citizens can own businesses
Buyers and sellers decide how many goods are produced
Buyers and sellers decide how much they cost
Governments own businesses
Government decides how many goods are produced
Government decides how much things cost
What are the differences?

14. What are the differences?
Pure Market
Pure Command
Supply and Demand determines prices
Privately own business
Wages determined by employer
Demand determines supply
Government price control
Nationalized businesses
Wage control
Government controls supply
What are the differences?

15. Country
Type of Economy
Growing or Struggling
What the government controls
Canada
Cuba
Brazil

16. Canada
Canada has a mixed market economy. Since WWII, Canada has progressed from a rural economy to a thriving industrial one based on manufacturing, mining and service industries. The government controls some areas like healthcare and postal service.

17. Cuba
Cuba has a command economy. The government owns all resources and property, and decides what and how much are to be produced. Cuba’s economy has struggled since the breakup of the Soviet Union in the early 1990s because the Soviet Union was Cuba’s main trading partner.

18. Brazil
Brazil has a mixed market economy, with strong agricultural, mining, manufacturing, and service segments. Brazil has the strongest economy of all the South American countries. The government controls some area like health care and the postal service.

19. Trade barriers What are the two kinds of trade barriers? Physical
Examples: Mountains, forests, deserts, climate
Political
Examples: embargo, tariff, currency exchange, import quota, trade agreement between countries

20. Physical Trade Barriers
Trade Helpers in Latin America
Trade Blockers in Latin America
Coast
Panama Canal
Amazon River
Amazon rainforest
Amazon Rainforest
Andes Mountains
Sierra Madre Mountains
Atacama Desert
Physical Trade Barriers

21. Political Trade Barriers
Definitions
Why would a country use this?
Embargo- a ban on trade
Tariff-a tax on imports
Import Quota- a limit on imports
Currency Exchange- different money in countries
Trade agreement- an agreement concerning trade between two or more countries
Disagree with a country
to protect your country’s products
Different currencies are worth different values
To get things that your country needs
Political Trade Barriers

22. Political Trade Barriers
Embargo- a ban on trade
Tariff-a tax on imports
Import Quota- a limit on imports
Currency Exchange- different money in countries
Trade agreement- an agreement concerning trade between two or more countries

23. North America Free Trade Agreement
United States, Mexico, Canada
Removes trade Barriers such as Tariffs, embargos, import quotas
Signed in 1993
To get items that you do not have
Specialization-when a country focuses on producing a certain product
Venezuela-oil
Cuba-Sugar

24. Warm-up Why would a country use an embargo instead of a tariff?
What is the main difference between a quota and a tariff?
If a country wants to increase its number of imports would it use a quota?

25. GDP Total goods and services produced in a country.
What would that include?
Like the country’s paycheck

26. What are the four factors that impact economic growth?
HOW???
Entrepreneurs- one that starts a new business
Capital goods- factories, machinery, tools, computers, things needed to produce products
Human Capital- workers
Natural Resources- things found in nature
They make the country money
They are needed to make products
Healthy, educated workers
Use them make products and sell them to other countries
What are the four factors that impact economic growth?