1. Population, Sovereignty, and Economy

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

3. 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.

4. Economic Systems
Traditional Economy-nearly all goods and services are consumed in their own family or village.
A market economy is an economy in which individuals and groups have a great deal of freedom, and decisions are influenced by the “laws of supply and demand.”
A command economy is an economic system that is controlled by a single, central government, and decisions are made to achieve political or social goals.

6. 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.

7. 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.