Economics

1. tariff C O M M A N D M I X E D embargo Economics Human capital NAFTA Market quotas traditional Physical Capital Currency exchange Natural resources GDP entrepreneurship

2. Comparing Latin American Economies Mexico, Brazil, & Cuba

3. Economics • How many basic types of economic systems are there? • 4 • Name the economic systems. • Traditional, Command, Market, Mixed • Which economic system is the most common throughout the world? • Mixed.

4. Economic Continuum • A group of financial experts set up a rating system to help us understand how much command and market each country has in it. • This Index of Economic Freedom gives each country a number that can be plotted on a economic continuum. The United States has an Economic Freedom number of 77.6. Since this number is closer to the market side of the continuum, we label the U.S. as a Mixed-Market Economy. • Now, lets compare the economies of Brazil, Mexico, Canada, and Cuba!

5. Economic Systems Pure Market Cuba 28% Brazil 57% Mexico 67% USA 77% 0 100 Pure Command Mixed Economy

6. Foreign Exchange Rates • The price of 1 country’s currency compared to another… • 1 US dollar = 11 Mexican pesos • 1 US dollar = 1.8 Brazilian reals • 1 US dollar = 1 Cuban peso

7. United Mexican States

8. 3 Economic Questions… • What to Produce? • Businesses decide and government approves/denies it • How to produce it? • Businesses decide & government regulates procedures • For whom to produce? • Businesses decide based on supply & demand (price) • Which economic system does Mexico have?…

9. Mexico’s Economic System • Mexico has a Mixed –market economic system, that is closer to market than command.

10. Mexico’s Natural Resources • What’s available? • petroleum, silver, copper, gold, lead, zinc, natural gas, timber

11. Mexico’s Land Use • What percentage of the land is arable (capable of being farmed)? 12.66%

12. Mexico’s Industries • What’s being produced in the factories? • food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, motor vehicles, consumer durables, • Tourism is also a major industry in Mexico.

13. Mexico’s Literacy Rate • What percentage of people over the age of 15 can read and write? • 91% • How long are students required to stay in school? • 13 years

14. Mexico’s Unemployment Rate • What percentage of people do not have jobs? 3.74% (however, only 61.1% of people working age have a job) • What percentage of people live in poverty? 46.2 % (2014)

15. Mexico’s GDP • $1.144 trillion (2015) • $1.298 trillion (2014) • US $16.77 Trillion (2013) • Per Capita per person - $14,610 • (US Per Capita per person - $53,041)

16. Federative Republic of Brazil

17. 3 Economic Questions… • What to Produce? • Businesses decide and government approves/denies it • How to produce it? • Businesses decide & government regulates procedures • For whom to produce? • Businesses decide based on supply & demand (price) • Which economic system does Brazil have?…

18. Brazil’s Economic System Brazil has a Mixed-market economic system

19. Brazil’s Natural Resources • What’s available? • bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin, uranium, petroleum, hydropower, timber

20. Brazil’s Land Use • What percentage of the land is arable (capable of being farmed)? 6.9%

21. Brazil’s Industries • What’s being produced in the factories? • textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

22. Brazil’s Literacy Rate • What percentage of people over the age of 15 can read and write? • 88.6% • How long are students required to stay in school? • 14 years

23. Brazil’s Unemployment Rate • What percentage of people do not have jobs? • 11.9% • What percentage of people live in poverty? • 21.4%

24. Brazil’s GDP • $1.775 trillion (2013) • $2.615 trillion (2011) • GDP Per Capita--What is the value of goods and services produced per person? • $11, 208 (2013)

25. Republic of Cuba

26. 3 Economic Questions… • What to Produce? • Government makes all economic decisions • How to produce it? • Government decides how to make goods/services • For whom to produce? • Whoever the government decides to give them to • Which economic system does Cuba have?…

27. Cuba’s Economic System Cuba has a Command economic system

28. Cuba’s Natural Resources • What’s available? • cobalt, nickel, iron ore, chromium, copper, salt, timber, silica, petroleum, arable land

29. Cuba’s Land Use • What percentage of the land is arable (capable of being farmed)? 27.63%

30. Cuba’s Industries • What’s being produced in the factories? • sugar, petroleum, tobacco, construction, nickel, steel, cement, agricultural machinery, pharmaceuticals

31. Cuba’s Literacy Rate • What percentage of people over the age of 15 can read and write? • 99.8% • How long are students required to stay in school? • 16 years

32. Cuba’s Unemployment Rate • What percentage of people do not have jobs? 2.4% • No data available for poverty rate (15% lived in extreme poverty 10 yrs. ago)

33. Cuba’s GDP • $77.15 Billion (2013) • GDP Per Capita--What is the value of goods and services produced per person? • $12,700 (2013)

34. Let’s Review! • What are the 4 economic systems? • Traditional, Market, Command, and Mixed • Which Latin American country has a command economy? • Cuba • Which two Latin American countries have a Mixed-market economy? • Brazil and Mexico 3. Who makes the economic decisions in a command economy? • The government • What are the 3 economic questions that every country must answer? • What to produce? How to produce? and For whom to produce? • What type of economy do most democratic countries have? • Mixed-Market

35. Brazil Mexico Cuba

36. TOTD- On an Index card 3-Things you learned today 2- questions you still have 1-thing I want to learn more about OR think should be on the test