EUROPEAN ECONOMIES. Free- Enterprise/Market economy An economy that allows business owners to make...
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![Page 1: EUROPEAN ECONOMIES. Free- Enterprise/Market economy An economy that allows business owners to make decisions with little government interference Ex.](https://reader036.fdocuments.us/reader036/viewer/2022070413/5697bfef1a28abf838cb9ec3/html5/thumbnails/1.jpg)
EUROPEAN ECONOMIES
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Free- Enterprise/Market economy
◻An economy that allows business owners to make decisions with little government interference
◻Ex. Members of the European Union
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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
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Types of industry
◻Commodities/Manufacturing- goods/products
◻Services- something provided to others that is not a good
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trade
◻ Imports◻A product brought
into a country through trade or sale
◻Exports◻A product traded
with or sold to another country
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Natural resources
◻Raw materials used to make goods◻Primary Industries (ex. Oil Drilling in North
Sea)◻Having many natural resources supports
industrial growth
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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?
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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.
Scarcity Interdependence
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Waterways As Corridors – The Peninsula of Peninsulas
◻ The abundance of ports, harbors, coastlines, and rivers in Europe, makes trading of imports and exports easy.
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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)
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Labor Force
◻Workers needed to make the goods or provide the services
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Industrialization
◻The manufacturing of products in factories
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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?
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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
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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%