1. EUROPEAN ECONOMIES

2. Free- Enterprise/Market economy  An economy that allows business owners to make decisions with little government interference  Ex. Members of the European Union

3. Collective, Non-free economy ✕ An economy that allows the government to decide how many of and which goods are produced and at what price. ✕ Ex. Eastern European Countries before the Fall of Communism

4. Types of industry  Commodities/Manufacturing- goods/products  Services- something provided to others that is not a good

5. trade  Imports  A product brought into a country through trade or sale  Exports  A product traded with or sold to another country

6. Natural resources  Raw materials used to make goods  Primary Industries (ex. Oil Drilling in North Sea)  Having many natural resources supports industrial growth

7. Availability of Goods & Resources  Why might a country need to import goods and/or natural resources?  How might this affect their economies? What about their workforce?  How might an abundance of natural resources in a country be beneficial?

8. Ex. Oil is a natural resource that is scarce in Europe, therefore it must be imported from other countries.  When Resources cannot meet demand  To depend on another country’s resources and/or having another country depend on your resources. ScarcityInterdependence

9. Waterways As Corridors – The Peninsula of Peninsulas  The abundance of ports, harbors, coastlines, and rivers in Europe, makes trading of imports and exports easy.

10. Free – Trade zone  Lifts Border Restrictions  Eliminates Tariffs (gets rid of fees/taxes on imports and exports)  Makes Development Loans  In some cases, develops a common currency Ex: European Union is a free-trade zone (or trade corridor)

11. Labor Force  Workers needed to make the goods or provide the services

12. Industrialization  The manufacturing of products in factories

13. Gross Domestic Product (GDP)  GDP = the value of all goods and services produced within a country for a given period. Considered an indicator of a country’s standard of living.  GDP Per capita = per person  What might a high GDP per capita tell you about a country?

14. Standard of living  A measure of quality of life  We use many demographics to measure this: GDP Per Capita (wealth of individuals) Gross Domestic Product (GDP) (wealth of the country) Life Expectancy Literacy Rate Infant Mortality

15. US versus European Countries  How does the standard of living in the US compare to the standard of living in the UK, France, Germany, & Russia? (Use your matrix)  US info:  GDP per capita - $51,700  Infant mortality – 5.9  Life expectancy – 79  Literacy rate – 99%