1. 3-3 The Human Geography

2. Economya system in which people make, exchange, and use things that have value Producersowners and workers Consumerspeople who buy and use products Capitalisman economic system in which individuals own most businesses

3. Communisman economic system in which the central government owns factories, farms, and offices Developed Nationsa nation with many industries and advanced technologies Developing Nationsnations with few industries and simple technologies

4. Economy is a system in which people make, exchange, and use things that have value Producers are owners and workers Consumers buy and use products Which are you?

5. What will be produced? Who will it be produced for? How will it be produced? Ex. Rockin’ Elmo PSP

6. Capitalism Free Market economy - producers compete freely for consumers’ business Save money in banks. Banks lend money for interest People invest Owners also invest money

7. Communism is an economic system where the central government owns farms, factories and offices Government controls: - the prices of goods and services - how much is produced - how much workers are paid * Few countries use communism

8. Barely any pure economic systems U.S.A. – government build and maintain roads and provide other services Communism – few private owned businesses Government owns some industries and others have private owners = mixed ownership

9. Developed vs. developing nations Developed Nations: USA, Canada, Japan, Europe - 1/5 of world’s people - Goods made in factories - Most live in towns and cities - Enough food and water - Get an education and healthcare - Commercial farms Problems: - Unemployment: not everyone can find work - Pollution

10. Developing Nation: Africa, Asia, Latin America - No great wealth - Feed families off of farms (subsistence farmers) Little to no machinery on farms - Great challenges: Disease, food shortage, unsafe water, poor education and healthcare, political unrest Sell natural resources: Saudi Arabia, South Africa

11. Specialties: we trade based off of countries specialties Interdependent means to depend on one another Developed nations trade for what? Developing nations trade what? Trade alliances reduce the cost of trade: good or bad? NAFTA: North American Free Trade Agreement (USA, Canada, Mexico) European Union Businesses increase sales to other countries. Consumers pay less.