1. ECONOMIC DEVELOPMENT OF LATIN AMERICA STUDY GUIDE

2. Which Latin American country has a command economy? Cuba

3. Which country has an embargo or does not allow trade with Cuba? United States

4. Which country has the healthiest economy in South America? Brazil

5. True or False: The rate of Entrepreneurship is high in Latin America because of high unemployment and a way to get out of poverty? True

6. What is it called when you something now and pay for it later? Credit

7. What can you invest your money in to make it grow? Savings Accounts, Real Estate

8. What is the name of Mexico’s currency? Peso

9. What restricts or stops the amount of products that can be imported? Embargo

10. What are taxes on imported goods called? Tariffs

11. The countries of Latin America use a variety of currencies, or types of money. Why is it important to have a system in place for exchanging currencies? To be fair

12. Entrepreneurs have a major impact on the economies of Latin America. What do entrepreneurs do to help their country’s economy? Create jobs

13. Use the chart below to answer question #12-14

14. Which two countries have the highest GDP per capita? United States and Brazil

15. Based on the information on the chart, which country should have the highest standard of living? United States

16. Compare the countries above. What conclusion can you draw from the chart? Tonga’s low population makes it impossible to raise the GDP per capita

17. Brazil’s economy has experienced dramatic changes over the years. Describe Brazil’s economy today? Brazil’s economy is diversified and is immune to global market changes

18. The North American Free Trade Agreement (NAFTA) was signed in the early 1990’s. What is the purpose of NAFTA? Eliminate trade barriers between the US, Mexico, and Canada

19. Soybean farming is a major industry in Brazil. How does specializing in growing soybeans help Brazil trade with other countries? Brazil can trade with other countries to get goods and services

20. The prices of goods and services are set by supply and demand, not by the government, in what kind of economy? Market Economy

21. Why are entrepreneurs important to Mexico’s economy? They invest in capital goods

22. Mexico and Brazil have market economies. True or false: In a market economy, companies produce goods and consumers decide what to purchase. True

23. The citizens of a country contribute to its economy. A person in Brazil who starts a new company in the tourism business could be called what? Entrepreneur

24. South American countries now have more diversified economies than they did in the past. Many foreign companies have made investments in the mining and petrochemical industries. These are examples of which kind of capital? Investment in capital goods

25. The relationship between the literacy rate and standard of living in Latin America is important because __________________________. The higher the standard of living, the higher the literacy rate

26. Many Mexican workers are employed in which industry because of NAFTA? Manufacturing

27. Which of the following sentences describes a country with a mixed economy? There is a combination of government regulation and privately owned businesses

28. A country’s distribution of resources is based on inheritance Traditional economy

29. Prices and wages are completely controlled by the government Command Economy

30. Prices and wages are solely determined by the laws of supply and demand Free Market

31. There is a combination of privately- owned industry and government control Mixed economy