3-3 the human geography. economya system in which people make, exchange, and use things that have...
TRANSCRIPT
Economic Systems3-3 The Human Geography
Economy a system in which people make,exchange, and use things that have value
Producers owners and workers
Consumers people who buy and use products
Capitalism an economic system in which individuals own most businesses
Vocabulary
Communism an economic system in which the central government owns
factories, farms, and offices
Developed Nations a nation with many industries
and advanced technologies
DevelopingNations nations with few industries and
simple technologies
Vocabulary
Economy is a system in which people
make, exchange, and use things that have value
Producers are owners and workers
Consumers buy and use productsWhich are you?
Different kinds of economies
What will be produced?Who will it be produced for?How will it be produced?
Ex. Rockin’ ElmoPSP
Basic Questions
Capitalism
Free Market economy -producers compete freely
for consumers’ business
Save money in banks. Banks lend money for interestPeople investOwners also invest money
Private Ownership
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
Government Ownership
Barely any pure economic systems
U.S.A. – government build and maintain roads and
provide other servicesCommunism – few private owned businesses
Government owns some industries and others have private owners = mixed
ownership
Mixed Ownership
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 farmsProblems: - Unemployment: not everyone can find work - Pollution
Levels of Economic Development
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
Level of Economic Development
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 UnionBusinesses increase sales to other countries.
Consumers pay less.
New Trade Patterns