Return to Our Essential Question(s)…..

What are the major physical features of Latin America and the Caribbean, and where are

they located on a map?

What are the major countries of Latin America and the Caribbean, and where are

they located on a map?

http://upload.wikimedia.org/wikipedia/commons/2/29/North_America_satellite_orthographic.jpg

http://upload.wikimedia.org/wikipedia/commons/e/e9/South_America_satellite_orthographic.jpg

What are the 4 Factors of Production?

Natural ResourcesHuman ResourcesCapital ResourcesEntrepreneurship

What is “investment?” or

What does it mean to “invest” in something?

To sacrifice, or give up time, energy, and/or money in hopes of a positive result.

R56

GDP &

Investment in Human & Capital Resources

Today’s Standard…..

SS6E3 The student will describe the factors that cause economic growth and examine their presence or absence in Latin America.

a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

b. Explain the relationship between investment in capital goods (factories, machinery, and technology) and gross domestic product (GDP).

c. Describe the role of natural resources in a country’s economy.

d. Describe the role of entrepreneurship.

Intro to Our Essential Question(s)…..

What are the factors that promote economic growth in countries?

How are these factors present or absent in the countries of Latin America and the Caribbean? (Cuba and Brazil)

How does having or not having these factors of production affect the countries of Latin America and the Caribbean? (Cuba

and Brazil)

What is the role of entrepreneurship in Latin America?

Human Capital & the GDPGross Domestic Product (GDP)

The total value of all goods & services produced in a country in

one year.

Human CapitalWorkers w/ skills necessary to

produce effectively.Investment would include

funding education, training, & health of the workers in a

business or country.

If a country or business invests in it’s human capital>>>> GDP will most likely increase

GDP & Yearly Growth (2009)Mexico- $1.56 Trillion (5%)Venezuela- $344.2 Billion (-2.8%)Brazil- $2.194 Trillion (7.5%)Cuba- $114.1 Billion (1.5%)

U.S.A.- $14.73 Trillion (2.8%)

Capital Investments & the GDP

Gross Domestic Product (GDP) The total value of all goods & services

produced in a country in one year.

Physical CapitalThe factories, machines, tools, &

technology that workers & businesses need to produce.

If a country or business invests in physical capital (buying new & more efficient tools & machinery), it will be able to produce more>>>> GDP will most likely increase

The Role of Natural Resources in a country’s economy

Natural Resources“Gifts of Nature” – Arable Land, Minerals, Water, Forests

What role do they play in a nation’s economy? …A Huge One! If you have plenty, you can supply your people & have some left over to sellIf you don’t have plenty, you rely on others & have to buy instead of sell

The Role of the Entrepreneur in the economy

EntrepreneurThe person(s) with an idea for a product or service & the ability to bring the resources together to make it happen.

What role do they play in the economy?An important one….. They start business’s that make goods or provide services>>>

This provides jobs & increases the GDP

R56 – GDP & Investment in Human & Capital ResourcesSS6E7 The student will describe factors that influence economic growth and examine their presence or absence in Latin America.a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).c. Describe the role of natural resources in a country’s economy.

d. Describe the role of entrepreneurship.__________________________________________________________________________________________________________

Key VocabularyGross Domestic Product (GDP) – the Total Value ($) of all goods & services produced in a country in one year

Natural Resources – “Gifts of Nature”EXAMPLES: Trees, Water, Oil, Arable Land, Minerals, Livestock

Human Capital (Resources) – People w/ the skills & knowledge necessary to produceEXAMPLES: Doctor, Mechanic, Teacher, Lawyer, Accountant

Capital Resources – The tools, machinery, & technology needed to produceEXAMPLES: Drill, Hammer, Computer, Delivery Truck

Entrepreneur – Person/People willing to take the risk of starting a business for profit in a market economy__________________________________________________________________________________________________________a. Explain the relationship between investment in human capital (education and training) and gross domestic product (GDP).

If a country invests money and time in educating and training its’ human capital, how will that affect its’ GDP?The workers will be able to produce more→ GDP will grow

How would it affect a countries GDP if it didn’t invest much in educating and training its’ human capital?The workers will not be able to produce as much → GDP will NOT grow

b. Explain the relationship between investment in capital (factories, machinery, and technology) and gross domestic product (GDP).

If a country invests money and time in the creation of factories, machinery, and new technology, how will that affect its’ GDP?w/ better tools, workers will be able to produce more→ GDP will grow

How would it affect a countries’ GDP if it didn’t invest much in the creation of factories, machinery, and new technology?w/o better tools, workers will not be able to produce as much→ GDP will NOT grow

What is Gross Domestic Product (GDP)?The total value of all goods & services produced

by a country in a year

Investment in ResourcesHuman Capital

(Resources)

Investing in your human resources

by education &

training may have a

positive effect on

production

Capital Resources

Investing in capital

resources, like buying new machines &

technology, may have a positive

effect on production

Country

Total GDP(Rank in the World)

GDP per Capita(Rank in the World)

Education Investment(Rank in the World)

Capital Resource Investment

(Rank in the World)

Mexico

Venezuela

Brazil

Cuba

Haiti

Panama

Argentina

$1.56 Trillion(12)

$13,800(85)

4.8% of GDP(82)

21% of GDP(73)

$344.2 Billion(35)

$12,600(92)

3.7% of GDP(122)

16.4% of GDP(122)

$2.194 Trillion(8)

$10,900(105)

5.2% of GDP(61)

18.5% of GDP(105)

$114.1 Billion(67)

$9,900(110)

13.6% of GDP(2)

10.5% of GDP(149)

$11.18 Billion(145)

$1,200(177)

1.4% of GDP(177)

28.9% of GDP(21)

$43.48 Billion(95)

$12,700(91)

3.8% of GDP(115)

26.8% of GDP(32)

$621.7 Billion(24)

$15,000(75)

4.9% of GDP(71)

22% of GDP(67)

Return to Our Essential Question(s)…..

What are the factors that promote economic growth in countries?

How are these factors present or absent in the countries of Latin America and the Caribbean? (Cuba and Brazil)

How does having or not having these factors of production affect the countries of Latin America and the Caribbean? (Cuba

and Brazil)

What is the role of entrepreneurship in Latin America?