From Communism to Free Enterprise Ch. 9 Sec. 1 Pp. 258-262

Difficult Changes in Russia Switch from communism to free market economy (people, not gov’t make economic decisions) Businesses make their own decisions Businesses can fail and people can become unemployed

Changes Gov’t no longer sets prices, so prices have risen Prices and profits should encourage competition, driving prices down Many lack money to buy goods

Russia’s Economic Regions Moscow Political and cultural center Heavy industry – productions of goods like machinery and steel Light industry – production of consumer goods like clothing and furniture High technology and farming, also

Russia’s Economic Regions Port Cities Kaliningrad and St. Petersburg in northwest Murmansk and Vladivostok in the east Kaliningrad’s Dockyards

Russia’s Economic Regions Siberia Largest supply of minerals in Russia Oil and natural gas Undeveloped due to harsh climate Vast and remote

Russia’s Economic Regions The Volga and Urals Volga River carries ½ of Russia’s river traffic Irrigation and hydroelectric power Ural Mountains are rich in minerals Coal, oil, and natural gas

Environmental Issues Air and water pollution Forests were cut down Nuclear energy – from controlled atomic reactions Life expectancy - number of years the average person is expected to live