Ways societies organize production and distribution of goods and services Traditional Economies Custom and tradition determines what is to be produced and things are owned by families or the entire village. Distribution of goods and services are kept locally Ex: Parts of Brazil Communism National ownership of all production and distribution of goods and services Ex: Colombia Socialism The government owns some factors of production (usually the major industries) Ex: Argentina Capitalism Production and distribution of goods and services is based on private ownership Ex: Chile

(farming and ranching -what you raise and grow) Agriculture (farming and ranching -what you raise and grow) Sugar - Argentina Coffee - Colombia Manufacturing (What you make or build) Brazil Argentina Service Industries Ex: banking, tourism Peru

Problems when we run out Labor Outsourcing Pull factors (dependence on immigration) Slavery Needed when shortage of labor Hard push for immigration when slavery abolished Capital Countries remain underdeveloped Shortages of capital (money) caused bank runs in Argentina in early 2000s HUGE ECONOMIC CRISIS