Mexico and The Factors of Production Grade 6 ©2012, TESCCC

Contemporary cultures influence creative expressions Image courtesy of Follini, F. (Photographer). (2003). Naya bihana, new dawn. [Web Photo]. Retrieved from http://www.flickr.com/photos/livenature/199229158/in/gallery-gandara-72157625245634579/ ©2012, TESCCC

Diego Rivera Mural. Photo credit: Marín, G. (Photographer). (2010). Mitos y fantasias de los aztecas foto . [Web Photo]. Retrieved from http://upload.wikimedia.org/wikipedia/commons/3/31/Mitos_y_Fantasias_de_los_aztecas_foto_7.png ©2012, TESCCC

Key Understanding Interaction between a country’s government, its economic system, and the factors of production often determines the level of economic development in a country. Let us explore Mexico’s level of economic development. First, we need to understand the factors of production. ©2012, TESCCC

Mexico’s Government Three branches of government: Executive, Legislative and Judicial President is elected for only one term (serves a total of 6 years and may not serve again) Two political party system Unfortunately, corruption within the government decreases the number of outside investors. ©2012, TESCCC

Mexico’s Economy Mexico has increased (printed more) money supply creating inflation and a devalue of their money. Lack of economic freedom (freedom to compete and protection of people) Corruption keeps the economy from growing because foreign investors are fearful of the instability. ©2012, TESCCC

Industries of Mexico Manufacturing industries may take raw materials, buy materials from wholesalers, or buy materials from a retailer to make new products. – manufacturing in Mexico (Examples: clothing, toys, cars, houses, etc. Service industries provide intangible goods directly to the public, not final products – maquiladoras in Mexico (they provide labor, but companies are not Mexican), tourism as one of biggest industries after oil production. ©2012, TESCCC

What determines the level of economic development for a country? Life Expectancy: the average number of years remaining in the life span of a person. (In Mexico– 76) Gross Domestic Product: a measure of the economy; the total market value of goods and services produced within a country per year. (In Mexico– 1.1 trillion) Gross Domestic Product per capita: this indicates the people’s standard of living; it is the country’s GDP divided by the number of people in the country. (In Mexico– $14,700) Literacy: the ability to read and write (In Mexico ©2012, TESCCC

Mexico Image credit: (2009). Territorial evolution of mexico since 1821 to 2009. (2009). [Web Map]. Retrieved from http://en.wikipedia.org/wiki/File:Mexico's_Territorial_Evolution.png ©2012, TESCCC

Mexico’s Economic System: Free Enterprise/Free Market Economy Defined: Inputs used in the production of goods and services Factors of Production Examples Land Entrepreneurs (People willing to invest) Capital: $$ Labor ©2012, TESCCC

The Factors of Production ©2012, TESCCC

Land Natural resources Characteristics A gift of nature Limited in supply Land is immovable The supply of land involves no opportunity cost ©2012, TESCCC

Capital Man-made resources used for further production Examples: machines, raw materials, tools Features: Man made It raises the productivity of other factors ©2012, TESCCC

Is it LAND or CAPTIAL? Ice at Mount Everest Ice in a skiing field Sea water Sea water in a seafood restaurant Sharks in the Atlantic Ocean Sharks at the Ocean Park ©2012, TESCCC

Labor Any effort a person devotes to a task for which that person is paid. manual laborers, lawyers, doctors, teachers, waiters ©2012, TESCCC

Entrepreneurship Ambitious leaders that combine the other factors of production to create goods and services. Examples-Henry Ford, Bill Gates, Inventors, Store Owners, etc. ©2012, TESCCC

Free Enterprise Economy In a free enterprise economy, competition is allowed to flourish with a minimum of government interference. ©2012, TESCCC

Four Characteristics of Free Enterprise 1. Economic Freedom People have the freedom to choose their occupation and their employer. 2. Voluntary Exchange The act of buyers and sellers freely and willingly engaging in market transactions. 3. Private Property People have the right and privilege to control their possessions as they wish. 4. Profit Motive People are free to risk their wealth in a business venture. ©2012, TESCCC

What stories do murals tell? Muralists Diego Rivera, Jose Clemente Orozco, and David Alfaro Siqueiros were important artists in 20th century. The mural tradition continues today, as shown in the mural we saw painted on the fence. ©2012, TESCCC

. Image courtesy: Duarte, H. (Artist). (2005). Gulliver in wonderland mural. [Web Photo]. Retrieved from http://www.openhousechicago.org/site/231/ Artist Hector Duarte, who lives in Chicago, has turned his home into a giant mural representing the struggles of a Mexican immigrant ©2012, TESCCC

This is a ________________ that illustrates __________________________________. ©2012, TESCCC

Corn Corn was first domesticated in Mexico about 8,700 years ago, around 6700 BC The story of corn is the story of Mexico. Public art in Mexico has a long history, predating European exploration Murals are one medium used to communicate with the people. ©2012, TESCCC