Unit 4 Geography and Economics of Europe, Latin America,

Canada, and AustraliaLayered Curriculum

You are now in charge!

Layered Curriculum Analogy with Food WebApex Predator

Academic Predator

Theme: LocationA society’s location will affect its

economy, culture, and development. So what is

“development”?

List on your paper numbers 1-9

Based on your prior knowledge of these regions and continents which do you think will have lower development/infrastructure, lower GDPs and lower standards of living and why? (As you research see if your predictions are True or False.

Exploring the World’s Geography

Closing Question

How can the location of a country affect its economy, culture, and development?

Student One Economy Answers:

Student Two Culture Answers:

Student Three development Answers:

Latin America

Central America

• What are the regions that make up Latin America?

Don’t forget the Country of Mexico

Geography of Latin America

Standard SS6G1• The student will locate

selected features of Latin America and the Caribbean. – a. Locate on a world and

regional political-physical map:

• Amazon River• Caribbean Sea• Gulf of Mexico• Pacific Ocean• Panama Canal• Andes Mountains• Sierra Madre Mountains• and Atacama Desert.

Now it is time for you to complete your Latin America Map

– b. Locate on a world and regional political-physical map the countries of

• Bolivia• Brazil• Colombia• Cuba• Haiti• Mexico• Panama• and Venezuela.

Sierra Madre MountainsWatch your fuel levels is in purple writing

No gas stations, restaurants, or hospitals HMM! Economy?

The Caribbean

• Notice where we are in relative location…

How does the Panama Canal help with trade?

Panama Canal

Panama Canal Video

Panama Canal: it is a man-made waterway

Panama Canal

Label this on your map

Complete the map of

Latin America Today

Closing Question

• A physical trade barrier is a landform that will stop or make trade near impossible.

• According to today’s technology What physical features will act as a physical trade barrier

within Mexico, South America, and the Caribbean?

Student 1 answers Student 2 answers

Canada oh! Canada!

Canada

• SS6G5 The student will locate selected features of Canada.

• Locate on a world and regional political-physical map: – the St. Lawrence River– Hudson Bay– Atlantic Ocean– Pacific Ocean– the Great Lakes– Canadian Shield

– and Rocky Mountains.

Now it is your turn to label your map of Canada. Remember that you must study these physical feature and take a quiz over them as soon as you are ready to move on to the next task.

Closing Question

• A physical trade barrier is a landform that will stop or make trade near impossible.

• According to today’s technology What physical features will act as a physical trade barrier

within Canada?

Student 1 answers Student 2 answers

Australia• Just to review write down any prior

knowledge you may have about Australia– Which European Empire colonized the continent,

eventually creating the country?

– Who were the first colonists in Australia?

– What was the name of the people who are native to Australia, not colonists?

– What types of government do they have?

Australia

Australia Geography• SS6G12 The student will be able

to locate selected features of Australia.

• Locate on a world and regional political-physical map:

• the Great Barrier Reef• Coral Sea• Ayers Rock• and Great Victoria Desert

Now it is your turn to label your map of Australia. Remember that you must study these physical feature and take a quiz over them as soon as you are ready to move on to the next task.

Closing

• A physical trade barrier is a landform that will stop or make trade near impossible.

• According to today’s technology What physical features will act as a physical

trade barrier within Australia? Student 1 answers Student 2 answers

ECONOMY VOCABULARY

Standards SS6E1, SS6E2, SS6E3, SS6E5, SS6E6, SS6E7

Economy

• the production, consumption, and distribution of goods and services

Private vs. Public Businesses

• Private means it is owned by citizens• Public means it is owned by the government

“What a funny little government”

Political Cartoon: by Horace Taylor in 1899•John D. Rockefeller holding the White House and Treasury Department in his palm•the power of the Standard Oil empire, which controlled 90 percent of the refining business in the late 19th century. Rockefeller reaped huge profits by paying his employees extremely low wages and driving his competitors out of business by selling his oil at a lower price than it cost to produce it.

• Is some government regulation necessary?

• A set minimum wage for employees• Not allowing a monopoly on business

Traditional Economy• An economy where people

use the same work methods and tools generation after generation.

• Citizens do not have enough goods to have a surplus (more than they need), so they cannot earn extra money to buy better equipment.

• Without better equipment, they continue to work in the same way, never changing their methods.

Command Economy• An economy where the

government owns the country’s resources and businesses.

• The government decides what goods should be produced and what services will be available.

• Seriously limits citizen’s choices of jobs, goods, and services.

• Government decides wages (how much you earn for doing a job)

Puppet on a string!

Market Economy• An economy where private

citizens or groups of citizens own businesses.

• Citizens are free to develop many different types of businesses, so people have a wide variety of jobs, goods, and services

• Because people in a market economy are free to choose how to make and spend their money

• Citizens are paid based off of the private businesses value of their service

Mixed Economy• A mix of different

economic systems• Some businesses are

government owned and others are privately owned by citizens

• Private businesses determine wages, but the government will set a minimum wage to protect its citizens.

Obertobia

Video over Economic Systems and Economic Continuum

Pure Command

Pure Market

0 100

United States 75.5

Closing

• What is the difference between a Market Economy, Traditional Economy, and Command Economy?

Student One: Market

Student Two: Traditional

Student Three: Command

• How many basic types of economic systems are there?

• Name the economic systems.

• Which economic system do most textbooks say is the most common throughout the world?

• How many basic types of economic systems are there? 3

• Name the economic systems. Traditional, Command, Market

• Which economic system do most textbooks say is the most common throughout the world? Mixed. The GCEE states that mixed is not an economic system but rather a blending of two different types of systems.

Economic Freedom World Map

Europe

So which country would you choose

to place a business in?

What can you say about this region?

The United States use

to be ranked 80-100 Free

What does this economic freedom index number tell us about a

country?• Economic freedom is the condition in which

individuals can act with maximum autonomy and minimum obstruction in the pursuit of their economic livelihood and greater prosperity. Any discussion of economic freedom has at its heart reflection on the critical relationship between individuals and the government.

Economic Freedom

• For presentational clarity, the 10 economic freedoms are grouped into four broad categories:

• Rule of law (property rights, freedom from corruption);• Government size (fiscal freedom, government spending);• Regulatory efficiency (business freedom, labor freedom,

monetary freedom); and• Market openness (trade freedom, investment freedom,

financial freedom).

Click this link to read more of a description of each of the broad categories.

Economic Systems

PureMarket

PureCommand

Economic

Systems

PureMarket

PureCommand

Russia51.9%

Germany73.9%

United Kingdom74.9%

Data based on 2013 United States 75.5%

Russia’s Economy Today

• Historically:– Russia’s economy has

undergone significant changes since the collapse of the Soviet Union, moving from globally-isolated, centrally planned economy to a more market-based and globally integrated economy.

Russia’s Economy• Russia became the

world’s leading oil producer, surpassing Saudi Arabia; Russia is the second largest producer of natural gas, the second-largest coal reserves, and the eighth-largest crude oil reserves. Russia is a top exporter of metals such as steel and primary aluminum.

• Russia was hit hard by the global 2008 & 2009 crisis.

Russia’s Economy Today

• Economic reforms of the 1990s privatized most industry except: – Energy and Defense-

related sectors• The protection of

property rights is still weak and the private sector still remains subject to heavy state interference.

• Russia’s long term challenges also include

• a shrinking workforce,

• rampant corruption,

• and underinvestment in infrastructure

Germany’s Economy• The fifth largest economy

in the world– Leading exporter of

machinery, vehicles, chemicals, and household equipment

– Highly skilled labor force– Chronically high

unemployment and low average growth rate

– Due to 2008-2009 global recession there was not a demand for German exports from surrounding countries

The United Kingdom Economy TodayA leading trading center and financial center, is the second largest economy in Europe after Germany.

•The government has greatly reduced public ownership and contained the growth of social welfare programs.•Agriculture is highly mechanized and efficient producing 60% of food needs with less than 2% of the population.•UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining. It is now a net importer of energy resources.

United Kingdom Economy TodayLargest proportions of GDP are from services:•Banking•Insurance•Business services

Industry is continuing to decline in importance.

The UK was hit particularly hard by the 2008 global financial crisis:•Sharply declining home prices, high consumer debt, and this pushed the UK into recession.

The United Kingdom, continued

• The United Kingdom put into place several measures to stimulate the economy and stabilize the financial sectors:– Nationalizing part of the banking system– Temporarily cutting taxes– Suspending public sector borrowing rules– Moving forward public spending of capital projects

• Still weak consumer spending and subdued business investment weighed on the economy

Economic

Systems

PureMarket

PureCommand

Cuba28.7%

Brazil56.9%

Canada80.2%

Data based on 2013

United States 75.5%

Cuba’s Economy Today

• The government continues to balance the its socialist economic system against a desire for firm political control. • April 2011 the government held the first Cuban Party Congress in

which leaders approved a plan for wide-range economic changes.• Expanded opportunities for self-employment (entrepreneurship)• Introduced limited reforms to help with serious shortages of food,

consumer goods, services, and housing• The average standard of living for Cubans still is lower than before

the 1990s (loss of Soviet Union aid and domestic inefficiencies) • Venezuela has been providing Cuba with oil (100,000 barrels per

day) in return for Cuban medical personnel (30,000)

Economic Freedom

Index Score

28.7

Brazil’s Economy Today• Characterized by a large and well-developed agricultural, mining,

manufacturing, and service sectors, Brazil’s economy outweighs that o all other South American countries, and Brazil is expanding its presence in world markets.

Economic Freedom

Index Score

56.9

• The 2008-2009 global financial crisis affected its economy with a two year recession; however in 2010 Brazil’s economy began to recovery.

• GDP growth rate 7.5%, the highest in the last 25 years

• Unemployment is at historic lows• High levels of income inequality has declined

over the last 14 years• Brazil historic high interests rates have made

it an attractive destination for foreign investors (high interests rates on money loaned out)

Oh Canada! Economy Today

• High-tech industrial society, resembling the US in its market – oriented economic system

• High Standard of Living• Highly skilled labor force• Since WWII impressive growth of the mining,

manufacturing, and service sectors has brought Canada into an urban (city) industrial society instead of rural.

• Canada's major banks emerged from the financial crisis of 2008-2009 among the strongest in the world.

Economic Freedom

Index Score

80.2

Oh Canada! Economy Today

•Canada joined the US-Canada Free Trade agreement in 1989 and in 1994 the North American Free Trade Agreement, including Mexico.

•Dramatic increase in trade (US is its principal trading partner) •US absorbs ¾ of Canada’s exports each year•Canada is the US’s largest supplier of energy, including oil, gas, uranium, and electric power•Canada has discovered more oil in the Alberta’s oil sands boosting its rank to # 3 in the world behind Saudi Arabia and Venezuela.

Economic Freedom

Index Score

80.2

Economic

Systems

PureMarket

PureCommand

Australia82%United States

75.5%

Data based on 2013

Australia’s Economy Today

Australia’s economy has experienced continuous growth and features low unemployment. •Contained inflation: meaning goods and services have stable costs from year to year•Very low public debt•Strong and stable financial system

• 20 years of economic growth averaging 3.5% a year• Demand for resources from China and Asia has

grown rapidly, creating a channel for resources investments and growth in commodity exports.

Economic Freedom

Index Score

82

Australia’s Economy Continued • 70% of the GDP is in the Services and

75% of the jobs• Banking system has remained strong

despite the financial crisis in 2008-2009

• Surge in trade, exporter of natural resources, energy, and food

• High Levels of Foreign Investments due to:• Coal, iron, copper, gold, natural gas,

uranium, and renewable energy

Australia’s Economy Continued

• Australia is an open market with minimal restrictions on imports of goods and services.

• Australia is working with the World Trade Organization, APEC, G20, which opens up trade with many countries:• Chile• Malaysia• New Zealand• Singapore• Thailand

• United States• Canada• Mexico• Peru• Singapore• Vietnam• Japan• Indonesia • India

Closing

• What is an economic continuum?

Student One:

• What does an economic continuum tell us about a country?

Student Two:

Trade Barrier also called protective Trade Barriers

• Barrier=wall• Something that prevents trade• Examples:

– Tariff– Quota– Embargo– Geography (geography that prevents easy

trade, like mountains, oceans, etc.)

Obertopia Protective Trade Barriers Video

Tariff

• a tax that the government puts on imported or exported goods.

This protects your citizens businesses from foreign businesses by making the foreign products more expensive to buy!

Quota

• The amount of something that is allowed or admitted

• Examples:– A restriction on the quantity (number) of a good that can be

imported during a specific time period would be called an “import quota”.

– If the United States government only allows 50 tons of corn to be imported into the US each year, this would also be called an “import quota”.

– If your teacher has given you 20 minutes to work on an assignment, your “time quota” is 20 minutes.

More QUOTA examples

• Money Quota: Your parents give you $20 a week to spend. Once you spend all $20, you have met your “money quota”. You will not receive any more money until next week.

• Gas Quota: If you drive a company car and your work gives you one tank of gas for a week, then once you use all the gas in the car, you have met your “gas quota”. You will not receive any more gas until next week.

• Paper Quota: Your job only allows you to use 1,000 sheets of paper per year. If you use all 1,000 sheets, then you have met your “paper quota”. You will not receive any more paper until next year.

Example of why QUOTAS are used:

Embargo

• A government order prohibiting the movement of merchant ships into or out of its ports.

• A government restriction on trade with a foreign nation.

Closing

• What are the protective trade barriers, and what is their purpose?

Student One:

Student Two:

Student Three:

International Trade

• The sale of goods or services across country borders

• Trade between different countries

• This requires a system of exchanging currency.

Voluntary Trade

• When two countries both benefit from trade and they voluntarily decide to trade with one another

Country A

Country B

Currency

• A unit of exchange for goods or services• The money in circulation in any country

– A long time ago our money was based on the barter system, BUT it did not work out when the good you wanted did not match the good the person had to trade you. Currency allowed you to trade, but receive a commodity/cash that would allow you to go to another individual to get the good you needed as well.

Every country needs a system for exchanging its currency:

• Exchange Rate VideoWhy is it that a system of exchange is necessary between countries when they trade internationally? •Businessmen in the United States may want a natural resource to create a product, but they need it from another country, say Canada.

•US businessman needs Redwood Lumbar from Canada•Canada Lumbar Company states it will cost 50,000 Canadian Dollars

• The US businessman has to determine how many US dollars it will cost him to pay 50,000 Canadian Dollars to the Canadian Lumbar Co. in order to get the natural resource needed to create his product.

• A system of exchanging national currency is needed.

$.998 US Dollar = 1.00 Canadian Dollars

50,000 Canadian Dollars = 49,900

What are the factors of production?

United Streaming VideoList the factors of production:

• Human Capital• Capital Goods• Entrepreneurs• Natural

Resources– Investing in

each of these areas will help to increase your economic growth (GDP)

Capital Good

• The “stuff” used to make other goods

• Examples:– Machines

• Ice machine• Coin press

– Factories• A car manufacturing plant

– Technology• Computers• Software

Obertopia Capital Goods Video

Economic Growth Factor: How can we tell

if a country is investing in their

CAPITAL?

Human Capital

• The skills that humans have to build things or perform services.

• Examples:– A worker in a factory– A hair stylist– An actor– Waiter/waitress– A person who mows lawns

Obertopia Human Capital Video

Investing in citizens either with time training them for a specific skill or money through formally educating them through K-12 and college level.

Economic Growth Factor: How can

we tell if a country is

investing in their HUMAN CAPITAL?

If you said check their Literacy Rate, I am so impressed!

Investment in Human Capital• If a country does

not invest in the education, training, and skills of its people its poverty rate will be higher.

• What does the chart show about living in poverty and obtain an education? – The sample was

the age population 17-22 years old

• Why having an education is important to the citizen having a higher standard of living, but also the nation’s GDP!

The more education you receive the more earning power you will have.

Education Pays• Poor people apparently have lower college completion rates, which confirms prior

intuition: poor families may not be able to pay the cost of education, or other burdens of poverty such as bad health may make it difficult to complete college.

• It’s a vicious circle: poverty makes it harder to get an education, and lack of a good education makes it more likely that you are poor. Unsurprisingly, average income is substantially different for people of different education levels, with high average incomes practically a prerogative for the better educated:

Gross Domestic Product (GDP)

• The total value of all the goods and services produced within the borders of a nation during a specific time period (usually a year).

• Often an indicator of Standard of Living (just like the literacy rate)

• Obertopia GDP and GDP per Capita Video

Atlanta Federal Reserve view of GDP as an indicator of economic growth video

Natural Resource

• Any product that comes from nature

• Examples:– Oil, coal, natural gas– Vegetables and fruits– Cotton– Sheep and cows– Gold and silver

How do natural resources affect an economy of a country?•Production of goods/services•If a country is lacking a natural resource they must import the ones they need. (adds to costs of goods and services)•If a country has many natural resources they can export then it will raise their standard of living.

Voluntary Trade: each country benefits from the exchange

Entrepreneur/Entrepreneurship

• When a person organizes and manages a business.

• Are willing to risk everything for the possibility of gaining a profit

Economic Growth Factor: How can we

tell if a country is investing in their

citizens as entrepreneurs?

Unemployment• The labor force divided by the number of

citizens that do not have a job…– This can be due to lay offs from companies and

people are actively seeking another job.– This can be from people not having the skills that

that jobs require in order to obtain it.– This can be due to there not being enough jobs

available for citizens. Video on Understanding Unemployment

Creating your own business plan:

• Use the knowledge gained to create your own business plan by analyzing the different countries economy’s and the presence or absence of the economic growth factors.– Critical Thinking DOK 4– Advanced Project – Rubric will be given out in class.