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.

(+) ( - )