1. Latin America More Economics!

2. Vocabulary (p.3) Specialization Trade NAFTA Reals Pesos Exchange rate

3. Specialization Division of Labor: work is divided into different parts. Each worker is allowed to become an expert in his or her part of the work. – Improves process and speed – more product in less time for less cost Most countries do not produce all of what they consume. – They specialize in certain goods. – They trade those goods for goods they need from other countries.

4. Barriers to Trade Tariff: tax on imports Quota: limit on number of imports Embargo: govt order stopping trade with another country

5. NAFTA North American Free Trade Agreement U.S., Canada, Mexico signed agreement called NAFTA – Took away all tariffs on trade among selves (free-trade zone) – increases standard of living for selves by increasing trade – Rules Protect artists from having work illegally copied trade fairly follow similar laws – Problems: companies move factories to Mexico (cheaper labor) 1.loss of U.S. jobs & increase in factory 2.pollution in Mexico

6. CRCT Test Prep pp. 74-78