Ohio’s Economy Unit 4 Lesson 4

A Large Economy Ohio has the 25 th largest economy in the world  produced more than $400 billion in goods and services Ohio’s economy is important to the industrial region of the northeaster United States

Geography and History Geography has an important effect on Ohio’s economy. The state has, or is located near, large supplies of natural resources. – Water, coal, salt, important minerals History has also shaped the state’s economy. As the USA grew, many businesses moved to Ohio to be closer to new markets. Industries have continued to come to Ohio because of its location near trade markets. – Markets  places to buy and sell goods

Geography and History During the 1800s, Ohio built many canals, roads, and railways. – Great Lakes & St. Lawrence Seaway connect Ohio with the Atlantic Ocean. Goods can easily be shipped between the United States and other countries through Ohio. – excellent place for trade

Working in Ohio Like the economy of the United States, the economy of Ohio has changed greatly over time. Some things have, though, stayed the same. People still trade what they have for what they want or need.

Entrepreneurs and Businesses Throughout history, new businesses have usually been started by entrepreneurs. – Entrepreneurs  people who organize and run businesses To start and run a business, an entrepreneur needs resources called factors of production. – factors of production = natural resources, labor, capital resources, and enterprise

Entrepreneurs and Businesses Labor is the work done by people to produce goods. Capital resources = money, buildings, machines, and tools needed to run a business Enterprise is the management of the natural resources, labor, and capital resources that a business has. These factors are used to produce goods and services in an economy.

Entrepreneurs and Businesses Entrepreneurs try to make products that meet the demand of consumers. Consumer  someone who pays money for goods and services When entrepreneurs make goods or provide services, they take a risk (chance). If consumers buy an entrepreneur’s goods or services, then the entrepreneur usually makes a profit. However, if the goods or services offered are not bought by the consumers, then the entrepreneur’s resources are lost.

A Variety of Industries Ohio is the 3 rd largest sources of manufactured goods in the United States. – Steel, motor vehicles, processed foods Ohio ranks 2 nd in the United States in steel manufacturing. Ohio ranks 3 rd in food processing – the cooking, canning, drying, and freezing of foods. Ohio is also a leader in agriculture. – produce more eggs than any other state – produce more wool than any state east of the Mississippi River

Ohio’s Economy Today The United States has a free enterprise economy. – Free enterprise  a kind of economy in which people own and run their own businesses. Under free enterprise, the government has limited control over businesses.

Manufacturing and Services Manufacturing has regained its strength in Ohio since the 1970s. During the 1980s, some businesses from other countries chose to build offices and factories in Ohio. More Ohioans work in the state’s service industries. – Tourism  the selling of goods and services to visitors Tourists spent more than $25 billion in Ohio in 2008.

Ohio and the World Many of the products manufactured in Ohio are exports (goods sent for sale to other countries). The state’s top exports are machinery and vehicles. Jobs manufacturing these exports depend on the markets in other countries to which they are sent.

Ohio and the World Ohio also receives imports (goods from other countries). – Top imports to the United States include food, automobiles, and electronics. Many imports are shipped to Ohio. The countries that make imports depend on markets in Ohio and the United States. – Jobs related to the shipping of imports and exports depend on trade between countries = international trade.

Ohio and the World Trade creates interdependence between people in Ohio and other places. – interdependence  people in each place depend on the others for products and resources