1. Government

2.  Federal Republic: a form of government made up of a federal state with a constitution. –This system is nearly identical to the U.S. form of government.  Its government covers the 31 states and the Federal District of Mexico

3. Powers Separated into 3 Branches  Independent Executive (President) –One 6 year term  Legislative (Congress) –Bi-cameral: a Senate (128 seats) and a Chamber of Deputies (500 seats).  Judicial (Supreme Court of Justice, federal and local courts).  Elects are held on 1 July.

5. Economy  Major Trading Partners: –Exports: US 80.5%, Canada 3.6%, Germany 1.4% –Imports: US 48%, China 13.5%, Japan 4.8%, South Korea 4.6%, Germany 4.1%

6.  Supply: is how much of something is available.  Demand: is how much of something people want.  Simply put –Supply and Demand is the impact of availability and price.

8.  Inflation: a general increase in prices and fall in the purchasing value of money.  Inflation occurs in an economy when the demand for services and goods exceeds the total supply.  Now, because of less supply, the prices of these services/goods increases and this kind of situation is known as inflation.