Population, Sovereignty, and Economy

Population Population Density-average number of people in a square mile or square kilometer. Over 6.7 Billion people on Earth.

World’s Countries Sovereignty-a nation’s freedom from outside control. A country rules itself by establishing its own policies and determining its own course of action. Sovereignty entitles a country to act independently, deal equally with other countries, and protect its territory and citizens.

Economic Systems Traditional Economy-nearly all goods and services are consumed in their own family or village. Market Economy-system gives great freedom to individuals and groups-capitalism, free enterprise. Command Economy-controlled by a single, central government.

Mixed Economy Some nations have an economic system that is a mix of traditional, command, and market economies. Socialism-the state should own and run some basic industries while private enterprise should run others.

Trade Balance Countries try to reach a favorable balance of trade-more exports than imports. If people buy too many foreign goods, domestic businesses may lose profits and fail. Governments try to limit imports-one way of doing this is to tax imports.