1. Economic Systems in Latin America

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

3. Yanomamo Indians in Venezuela
Example
Yanomamo Indians in Venezuela

4. 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

5. Government owned telecommunications company in Cuba

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

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

9. 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.

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

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

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

13. 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.