Economics in Latin America
What is the best way for a country to improve its literacy rate?
Increase investment in human capital
How do quotas protect domestic producers?
By decreasing the amount of foreign goods in domestic markets
Why do people tend to live near water?
Because oceans and rivers make trade easier
What is an example of a natural resource?
Oil
How did the U.S. unintentionally increase migration from Latin America?
The War on Drugs destabilized the region
What is usually the result of investment in human capital?
Increases in entrepreneurship
What is the purpose of NAFTA?
Reducing economic barriers to trade
Why is central and western Brazil less populated?
It is covered by a dense tropical rainforest
What is an example of a capital good?
Ovens. machinery, etc.
What was the result of imposing a trade embargo on Cuba?
Trade between the U.S. and Cuba was made illegal
How is the standard of living related to literacy rate?
The higher the literacy rate, the higher the standard of living
What happens when countries engage in international trade?
Buyers and sellers agree on a currency for business
Bonus Question
an official ban on trade or other commercial activity with a particular country
Embargo
What are two ways governments invest in human capital?
Public education and job training programs
How did the U.S. impact Latin American economies through trade policies?
It influenced trade agreements like NAFTA
What is an example of a natural resource?
Oil
What is one way governments invest in human capital?
By providing a public education system
Bonus Question:
a tax imposed by a government on goods or services imported from another country, often used to protect domestic industries or raise revenue
Tariff
How does human capital investment impact a country’s economy?
It leads to higher productivity and economic growth
How does the U.S. dollar play a role in international trade?
It is often used as the currency for business transactions
How does the United States embargo on Cuba affect their economies?
All trade between Cuba and the U.S. became illegal
What was one effect of the U.S. trade embargo on Cuba?
It harmed both Cuba’s and the U.S.’s economies
How does climate affect population distribution?
People live where climates are milder and resources are available
How does investment in capital goods benefit businesses?
It helps improve efficiency and output
What is one reason people migrate from Latin America to the U.S.?
Economic opportunities and job availability