Why are both countries “rich”?

 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

 Plantations  Tobacco  Cotton  Sugar  Slaves from Africa  Cultural Diffusion  Music, language, & religion

Consumer demand determines what is produced People own most everything and are able to buy and sell with very little government intervention.

 Lifestyle a country has.  The things you own.

 Personal income (GDP per capita)  Communication technology  Life expectancy  Levels of Economic Activity (how natural resources are used)

$49,800 dollars per person $41,500 dollars per person You might also see this called GNI: Gross National Income

$14,620,000,000,000 trillion – Number 1! $1,564,000,000,000 trillion - Number 9!

COMMUNICATION & CONNECTIVITY LIFE EXPECTANCY

 U.S. & Canada are rich in natural resources  How do both countries use those resources?

 Commercial v. Subsistence Agriculture

COMMERCIAL INDUSTRYCOTTAGE INDUSTRY

 Post Industrial Economy  Most of our jobs are in services or information Over 70%

 Natural resources  Stable Political system encourages business  Invest in infrastructure  Educated workers = innovation

 Stable governments = responsible development  Invest back into economy  Education  Infrastructure

 Infrastructure works together to support a strong economy

 Education is the key to raising a country’s standard of living  Education = innovation = stronger economy

 Educated workers are a BIG part of economic success

 Jobs  Education  Freedom

North American Free Trade Agreement Trade agreement between Mexico, USA, and Canada that allows for cooperation on trade and economic issues

North American Free Trade Agreement Free trade agreements eliminate tariffs (taxes) on goods Under NAFTA there are none of these between Canada, Mexico, & US

WINNERSLOSERS  Large corporations have benefited  Small Mexican farmers have been hurt. Can’t make a living, so they immigrate

 Integration of national economies into the international economy through trade, migration, and the spread of technology.

Globalization = Economic Interdependence Can be good or bad…

Get out a separate sheet of paper. Draw this on your card: PROS (+)CONS (-)

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. (+)( - )