All About… Europe!

1. All About… Europe!

2. Literacy Rate Literacy is a person’s ability to read or write to an acceptable level. Literacy rate is the percentage of people in a country who are literate. It is a strong indicator of how successful a nation is. The majority of European nations have literacy rates well above 90% with several at 100%. Hungary’s literacy rate is 99% and it is considered an upper-middle-income country. France’s literacy rate is 99%, and France possesses the fifth largest economy. The majority of European nations with high literacy rate enjoy a strong economy too.

3. Literacy Rate: How does literacy rate affect a country’s standard of living??? http://media.maps.com/magellan/images/worldlit.gif

4. Literacy Rate & Standard of Living Information Chart

5. Economic Growth Factors • Human Capital, Capital, Natural Resources, and Entrepreneurship • Measured by GDP Growth Rate – the percent increase in GDP from one year to the next • Example: GDP was 1% higher in 2000 than in 1999, so the GDP Growth Rate is 1% • Highly developed countries like the USA have smaller growth rates because their economies are so large already.

6. Human Capital • Higher literacy rates mean better human capital. Why? • UK • 99% literacy rate • GDP growth rate – 0.7% • Germany • 99% literacy rate • GDP growth rate – 1.3% • Russia • 99.4% literacy rate • GDP growth rate – 6% Why might Russia have a higher GDP Growth Rate than the other two even though their literacy rates are about the same? (Think about history….)

7. Capital • Investment in capital = higher GDP • United Kingdom • Capital investment – 16.7% of GDP • GDP Growth Rate – 0.7% • Germany • Capital investment – 18.9% of GDP • GDP Growth Rate – 1.3% • Russia • Capital investment – 24.7% of GDP • GDP Growth Rate – 6%

8. Natural Resources Natural resources help GDP to grow. • The darker the color on the map, the higher % of that country’s GDP comes from natural resources (oil, natural gas, coal, minerals, and forests). • UK GDP – $2.3 trillion • Germany GDP - $3.1 trillion • Russia GDP - $2.4 trillion

9. Entrepreneurship • The easier it is for people to start businesses, the more businesses will be started, helping the GDP grow! • United Kingdom • Business Freedom Ranking – 94 • Freedom to conduct a business – strongly protected • Starting a business takes 13 days (average) • Germany • Business Freedom Ranking – 92 • Freedom to conduct a business – protected • Starting a business takes 18 days (average) • Russia • Business Freedom Ranking – 69 • Freedom to conduct a business – limited • Bureaucratic obstacles are a problem for small businesses

10. European Economies: UK, Germany, & Russia

11. United Kingdom • What to produce? • Largely service-based economy • Efficient agricultural sector • How to produce? • Industries have much freedom • Recent moves to give government control over some industry (like banking) • For whom to produce? • Private sector produces for domestic and international markets

12. Germany • What to produce? • Export-based economy • Focus on manufacturing and raw materials • How to produce? • Largely private-owned and independent • Government becoming more involved in financial businesses • For whom to produce? • Exports are based on global markets. • West Germany still gives money to East Germany to help modernize.

13. Russia • What to produce? • Russian government still greatly involved; must approve any investments larger than 50 million rubles. • How to produce? • Hard to have large-scale production changes and to modernize factories/farming equipment (government!!!). They’re trying! • For whom to produce? • Low to moderate tax rates • Trying to allow market interaction; high tariffs and low protection of private property make it difficult.

14. Economic Continuum ALL ARE MIXED!!! • UK is on the far market side of the continuum. • Germany is more towards the market side of the continuum than the command side, but not as much toward market as the UK. • Russia is basically in the exact center of the continuum.

15. Economic Continuum

16. Europe…. Through the Years

17. Think-Pair-Share • WRITE DOWN IN YOUR COMPOSITION BOOK • Which factor of production (human capital, capital, natural resources, and entrepreneurship) do you think is MOST IMPORTANT to helping Europe’s economy grow? • Why?

29. Languages of Europe • German, English, Russian, French, Italian… and more! • Many changes in Europe’s political boundaries over 2000 years • Size of countries = many currencies • Why would many currencies cause challenges with trading? • Why would many languages cause challenges with trading?

30. Indo-European Language Family Some of the branches and examples of them…. • Greek – Greek • Balto-Slavic – Czech, Polish, Russian, Ukranian • Germanic – German, English • Italic (Romance) – Italian, Spanish, French • Celtic – Irish

33. European Union

34. European Union Union of 28 European countries First formed in 1992 to encourage trade; it has gotten more powerful over the years One currency- the Euro U.K. does not use the Euro, but other countries do This is used to make all goods cost the same The E.U. is supposed to give more economic prosperity to Europe, but it takes sovereignty (the right to govern yourself) away from member countries Also: language barriers are still around!

35. It’s hard to get into the E.U. • Countries have to meet certain criteria to get in • Economic • Environmental • Human Rights • Environmental concerns • Air quality • Emissions • Climate change Welcome Croatia… the EU’s newest member, joined July 1, 2013!

36. Europe Journal • Europe is very DIVERSE (it has a lot of variety). • Give some examples of Europe’s diversity (at least three). • How is diversity helpful for Europe? • How does diversity make things difficult in Europe? • AT LEAST TEN SENTENCES • Due TOMORROW (add to your agenda if you don’t finish in class)

37. Government Vocabulary • Suffrage– the right to vote • Head of Government– government leader who manages the day-to-day activities of the government • Chief of State– government leader who represents the country at official functions; may not be involved with day-to-day activities • Constitutional Monarchy- a government ruled by a king or queen whose power is determined by the nation’s constitution and laws

38. More Gov. Vocabulary • Dual System- government with both a President and Prime Minister; has features of both the Parliamentary and Presidential systems • Federation– a union of states united by a central government, which has more power than a confederacy. • Representative Democracy/Republic– the people vote for representatives in their government. • Bicameral– two-house legislature • Direct election– government official who is elected by the people voting for him

39. United Kingdom of Great Britain and Northern Ireland (United Kingdom)

40. Federal Republic of Germany (Germany)

41. Russian Federation (Russia)

42. Constitutional Monarchy A B • Limited power for King and Queen • Absolute power for King or Queen

43. Constitutional Monarchy A B • Limited power for King and Queen • Absolute power for King or Queen

44. Parliamentary System/Democracy A B • Voters directly vote for Prime Minister • Voters indirectly vote for Prime Minister

45. Parliamentary System/Democracy A B • Voters directly vote for Prime Minister • Voters indirectly vote for Prime Minister

46. Dual System A B • 2 Leaders in Charge • 1 Leader in Charge

47. Dual System A B • 2 Leaders in Charge • 1 Leader in Charge

48. Unitary A B • Strong central government, weak state government • Strong state government, weak central government

49. Unitary A B • Strong central government, weak state government • Strong state government, weak central government

50. Autocratic A B • 1 person rules • The people rule