1. Return to Our Essential Question(s)…..
What are the major physical features of Latin America and the Caribbean, and where are they located on a map?
What are the major countries of Latin America and the Caribbean, and where are they located on a map?

6. What are the 4 Factors of Production?
Natural Resources
Human Resources
Capital Resources
Entrepreneurship

7. What does it mean to “invest” in something?
What is “investment?” or
What does it mean to “invest” in something?
To sacrifice, or give up time, energy, and/or money in hopes of a positive result.

8. R56 GDP & Investment in Human & Capital Resources

9. Today’s Standard…..
SS6E3 The student will describe the factors that cause economic growth and examine their presence or absence in Latin America.
a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).
b. Explain the relationship between investment in capital goods (factories, machinery, and technology) and gross domestic product (GDP).
c. Describe the role of natural resources in a country’s economy.
d. Describe the role of entrepreneurship.

10. Intro to Our Essential Question(s)…..
What are the factors that promote economic growth in countries?
How are these factors present or absent in the countries of Latin America and the Caribbean? (Cuba and Brazil)
How does having or not having these factors of production affect the countries of Latin America and the Caribbean? (Cuba and Brazil)
What is the role of entrepreneurship in Latin America?

11. Human Capital & the GDP
Gross Domestic Product (GDP)
The total value of all goods & services produced in a country in one year.
Human Capital
Workers w/ skills necessary to produce effectively.
Investment would include funding education, training, & health of the workers in a business or country.
GDP & Yearly Growth (2009)
Mexico- $1.56 Trillion (5%)
Venezuela- $344.2 Billion (-2.8%)
Brazil- $2.194 Trillion (7.5%)
Cuba- $114.1 Billion (1.5%)
U.S.A.- $14.73 Trillion (2.8%)
If a country or business invests in it’s human capital>>>> GDP will most likely increase

12. Capital Investments & the GDP
Gross Domestic Product (GDP)
The total value of all goods & services produced in a country in one year.
Physical Capital
The factories, machines, tools, & technology that workers & businesses need to produce.
If a country or business invests in physical capital (buying new & more efficient tools & machinery), it will be able to produce more>>>> GDP will most likely increase

13. The Role of Natural Resources in a country’s economy
“Gifts of Nature” – Arable Land, Minerals, Water, Forests
What role do they play in a nation’s economy?
…A Huge One!
If you have plenty, you can supply your people & have some left over to sell
If you don’t have plenty, you rely on others & have to buy instead of sell

14. The Role of the Entrepreneur in the economy
The person(s) with an idea for a product or service & the ability to bring the resources together to make it happen.
What role do they play in the economy?
An important one…..
They start business’s that make goods or provide services>>>
This provides jobs & increases the GDP

15. R56 – GDP & Investment in Human & Capital Resources
SS6E7 The student will describe factors that influence economic growth and examine their presence or absence in Latin America.
a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).
b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).
c. Describe the role of natural resources in a country’s economy.
d. Describe the role of entrepreneurship.
__________________________________________________________________________________________________________
Key Vocabulary
Gross Domestic Product (GDP) – the Total Value ($) of all goods & services produced in a country in one year
Natural Resources – “Gifts of Nature”
EXAMPLES: Trees, Water, Oil, Arable Land, Minerals, Livestock
Human Capital (Resources) – People w/ the skills & knowledge necessary to produce
EXAMPLES: Doctor, Mechanic, Teacher, Lawyer, Accountant
Capital Resources – The tools, machinery, & technology needed to produce
EXAMPLES: Drill, Hammer, Computer, Delivery Truck
Entrepreneur – Person/People willing to take the risk of starting a business for profit in a market economy
If a country invests money and time in educating and training its’ human capital, how will that affect its’ GDP?
The workers will be able to produce more→ GDP will grow
How would it affect a countries GDP if it didn’t invest much in educating and training its’ human capital?
The workers will not be able to produce as much → GDP will NOT grow
b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic
product (GDP).
If a country invests money and time in the creation of factories, machinery, and new technology, how will that affect its’ GDP?
w/ better tools, workers will be able to produce more→ GDP will grow
How would it affect a countries’ GDP if it didn’t invest much in the creation of factories, machinery, and new technology?
w/o better tools, workers will not be able to produce as much→ GDP will NOT grow

16. What is Gross Domestic Product (GDP)?
The total value of all goods & services produced by a country in a year

17. Investment in Resources
Human Capital (Resources)
Capital Resources
Investing in your human resources by education & training may have a positive effect on production
Investing in capital resources, like buying new machines & technology, may have a positive effect on production

18. Capital Resource Investment
Country
Total GDP
(Rank in the World)
GDP per Capita
Education Investment
Capital Resource Investment
Mexico
Venezuela
Brazil
Cuba
Haiti
Panama
Argentina
$1.56 Trillion
(12)
$13,800
(85)
4.8% of GDP
(82)
21% of GDP
(73)
$344.2 Billion
(35)
$12,600
(92)
3.7% of GDP
(122)
16.4% of GDP
(122)
$2.194 Trillion
(8)
$10,900
(105)
5.2% of GDP
(61)
18.5% of GDP
(105)
$114.1 Billion
(67)
$9,900
(110)
13.6% of GDP
(2)
10.5% of GDP
(149)
$11.18 Billion
(145)
$1,200
(177)
1.4% of GDP
(177)
28.9% of GDP
(21)
$43.48 Billion
(95)
$12,700
(91)
3.8% of GDP
(115)
26.8% of GDP
(32)
$15,000
(75)
4.9% of GDP
(71)
22% of GDP
(67)
$621.7 Billion
(24)

19. Return to Our Essential Question(s)…..
What are the factors that promote economic growth in countries?
How are these factors present or absent in the countries of Latin America and the Caribbean? (Cuba and Brazil)
How does having or not having these factors of production affect the countries of Latin America and the Caribbean? (Cuba and Brazil)
What is the role of entrepreneurship in Latin America?