Why are both countries “rich”?. What did Europe take to the “New World”? What did...
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U.S. & CANADA ECONOMY Why are both countries “rich”?
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Transcript of Why are both countries “rich”?. What did Europe take to the “New World”? What did...
U.S. & CANADA ECONOMY
Why are both countries “rich”?
Columbian Exchange
What did Europe take to the “New World”?
What did explorers take back to Europe? Goods Ideas Helped Europe’s
economy
British Colonialism
Send raw goods to England
Primary Economy
P
Triangular Trade
Plantations Tobacco Cotton Sugar
Slaves from Africa
Cultural Diffusion Music, language, &
religion
Free Enterprise Economy
(Free Market, Capitalism)Consumer demand determines what is produced
People own most everything and are able to buy and sell with very little government intervention.
What is Standard of Living?
Lifestyle a country has.
The things you own.
Standard of Living
Standard of Living
Personal income (GDP per capita)
Communication technology
Life expectancy Levels of Economic
Activity (how natural resources are used)
GDP per capita– average income per person
$49,800 dollars per person
$41,500 dollars per personYou might also see this called GNI: Gross National Income
GDP of United States and Canada
$14,620,000,000,000 trillion – Number 1!
$1,564,000,000,000 trillion - Number 9!
Levels of Economic Activity
U.S. & Canada are rich in natural resources
How do both countries use those resources?
Levels of Economic Activity Commercial v. Subsistence Agriculture
Levels of Economic Activity
COMMERCIAL INDUSTRY COTTAGE INDUSTRY
Levels of Economic Activity
Post Industrial Economy
Most of our jobs are in services or information
Over 70%
U.S. = World’s Largest Economy
Natural resources
Stable Political system encourages business
Invest in infrastructure
Educated workers = innovation
Stable Governments
Stable governments = responsible development
Invest back into economy Education Infrastructure
Infrastructure
Infrastructure works together to support a strong economy
Education (another form of people power)
Education is the key to raising a country’s standard of living
Education = innovation = stronger economy
Human Capital
Educated workers are a BIG part of economic success
U.S. Pull Factors
Jobs Education Freedom
NAFTANorth American Free Trade Agreement
Trade agreement between Mexico, USA, and Canada that allows for cooperation on trade and economic issues
NAFTANorth American Free Trade Agreement
Free trade agreements eliminate tariffs (taxes) on goods
Under NAFTA there are none of these between Canada,
Mexico, & US
NAFTA: Trade without Taxes
WINNERS LOSERS
Large corporations have benefited
Small Mexican farmers have been hurt. Can’t make a living, so they immigrate
Globalization
Integration of national economies into the international economy through trade, migration, and the spread of technology.
Globalization = Economic InterdependenceCan be good or bad…
Free Trade Agreements
NAFTAGet out a separate sheet of paper.Draw this on your card:
PROS (+) CONS (-)
NAFTA
Quick Write: What does NAFTA stand for? What does NAFTA do? Is NAFTA good or bad for North America? Use at least 2 items you recorded from the video to
support your answer.
Directions: Answer in one paragraph of at least 5 complete sentences. Use your geography vocabulary
(look on word wall if you need help)
• As you watch the two videos, list pros (positives) and cons (negatives) of NAFTA.• Be prepared to write a paragraph based on what you have recorded in your T-chart.
(+) ( - )
