Study Guide….Economics, Environment, and Government of Latin

AmericaEconomics (mixed is not a type but what most are)

Type of Economy

Definition

Command Government control of products and price (Cuba)

Market Consumers make decisions; based on supply/demand (Mexico is close)

Traditional Based more on what your parents did; farming/hunting and gathering

Specialization:Definition – depending on one resource/crop/product for economic success

Give an example related to Georgia – We grow, harvest, process, and transport peanuts all over the country. Last year’s salmonella outbreak really hurt the industry as a whole and the economy of Georgia Do you think specialization encourages trade? Why or why not? Yes because when someone specializes in something then we can get it for a lower price

Trade Barriers DefinitionEmbargo When you refuse to ship goods to a

country for safety or political reasonsTariff A tax placed on goods brought into a

countryQuota A limit on how many goods can be

brought into a country.

Why do we have trade barriers? To protect our businesses; to make a statement about a political situation in another country – doesn’t work if they find another trading partner; to promote competitionThe United States is a member of NAFTA with Canada and Mexico. Tell whether the following points are positive or negative…

Positive These 3 countries do not charge tariffs on imported goods.

Negative The Chiapas in Mexico have difficulty selling their goods.

Negative Some Americans are concerned that some U.S. businesses will move to Mexico because companies can pay their employees less.

Positive Large corporations can make a high profit.The monetary unit of the United States is the dollar. In Mexico the monetary unit is the peso. If you were on vacation in Cancun, how would you purchase souvenirs for your friends? You would need to exchange dollars for pesos.

Economic Term DefinitionHuman capital/resources

Value of the education and skills of your workers

Capital goods/resources

Factories, machines, buildings used to make products

GDP The value of your countries goods and services

Entrepreneur Someone who takes a risk to start a business

Literacy rate The percentage of your people who can read/write

Natural resource Items found in nature that can be used for profit

Use the above terms to fill in the following blanks: Entrepreneur This is the person in charge of making sure a

business is run successfully. Human capital If your country sees the importance of

education, you probably have valuable workers. Natural resource This is important to the economy because if

we have trees we can build homes, use the pulp for the production of paper, and supply many jobs for workers.

GDP This will be high in a country if the government is concerned about educating their people and providing equipment for businesses to make goods.

Capital goods These are important in Venezuela if they are going to drill for oil, refine, and then transport the finished product to other countries.

Environment:

Issue Country Reason for concernOil pollution

Venezuela Oil spills, drilling equipment ruin environment

Air pollution

Mexico Most people live in the valley area where pollution can’t escape

Deforestation

Brazil People are using the rainforest and not replanting or protecting animal habitats

Government:Government Definition Exampl

ePresidential Dem.

Leader elected by the people Mexico/Brazil

Parliamentary Dem.

Leader elected by parliament None on test; Jamaica

Dictatorship Leader has complete control Cuba

Distribution of Power

Federal: Def: divided between state and national

Ex: Brazil

Unitary: Def: one central government for country

Ex: Cuba

Confederation:Def: regional gov’ts hold power.

Ex: None in L. America