Economic Systems in Latin America

Traditional Economic System Based on skills that are passed down from generation to generation Mainly focused on agriculture and herding

Yanomamo Indians in Venezuela Example Yanomamo Indians in Venezuela

Command Economy in Cuba 90% of people work for the government Government owns all factories and farms Government decides what to produce when to produce how much to produce

Government owned telecommunications company in Cuba

Command Economy in Cuba All major decisions related to the production, distribution, and prices are made by the GOVERNMENT.

Mexico’s Market Economy Individuals and corporations own most businesses and farms Free to choose what to produce and sell

Mexico’s Market Economy National and state governments play a minor role (government operates the energy companies) CONSUMERS and their buying decisions drive the economy.

Brazil’s Market Economy Private citizens and corporations own businesses and farms

Brazil’s Market Economy Government owns large businesses such as steel factories

Brazil’s Market Economy Buyers and sellers determine what is produced and the prices Private citizens and corporations determine how to distribute goods

Mixed Economy Free market Hong Kong U.S.A Canada United Kingdom France Japan Poland Mexico China Iran Russia Cuba ______________________________________________________________________________________________ Command There are no pure free market or pure command economies in the world. All economies are mixed. They fall some where along a continuum as shown above.