2.  Mixed Market Economy  Second largest economy in European Union  Industry: banking, insurance, business service account United Kingdom

3.  Since1979: government has turned over many state-owned companies (British Steel, British Coal, British Airways) to private ownership  Natural Resources include: coal, oil, natural gas  London is center of trade United Kingdom

4.  Socialist Market Economy: market, state control, social welfare where help is given to the poor.  1990: West Germany and East Germany united, West Germany absorbed huge cost’s bringing East Germany’s command economy into its market system Germany

5.  Strongest economy in Europe  Competes with Italy to sell chemicals, machinery, and food  Investment in human capital and capital equipment led to its economic strength Germany

6.  Investment in capital equipment is a priority for German companies and government  Government created vocational schools and universities to train workforce  Natural Resources include: rivers, forests, large deposits of coal and iron ore Germany

7.  Mixed Market Economy  Struggled in transition from command under Soviet Union to a market economy  Government owned businesses are being sold to private ownership  Financial problems: huge cost to upgrade old manufacturing plants and industries to modern standards Russia

8.  Natural Resources are plentiful but due to their location they cannot be harvested  St. Petersburg is center for trade  Volga River used for shipping items and hydroelectric power Russia

9.  Russia and Ukraine have lower GDP’s than other European countries  Both countries are rebuilding their economies after suffering serious financial problems once they became independent in 1990s  In Ukraine: educational systems suffered because their was little money for schools and to pay teachers  Russia: years of low capital investment left manufacturing plants with old outdated material Russia

10.  Set up to establish free trade in Europe  Makes up 1/5 of the world’s trade  EU does not have tariffs among member nations, but does against countries outside of the EU European Union

11.  EU does enforce quotas within member countries to give everyone equal advantage  IF foreign countries don’t follow specific quota, human rights, or environmental restriction rules, an embargo will be put in place European Union

12.  Someone who uses their own talents to open their own business.  Europeans do not have as many entrepreneurs as the United States  Reasons include: high taxes, lots of regulations, and job security  EU is urging member countries to reduce taxes and regulations on small business and help set up training programs on how to run a business Entrepreneurs