Transcript European Economy - Effingham County Schools

European Economy Page 29
Directions:
- Cut out Economy
Chart
- Glue into IN
United
Mixed Market Economy
Kingdom

 Second largest economy in European Union
 Industry: banking, insurance, business
service account
United
Kingdom
 Since1979: government has turned over many
state-owned companies (British Steel, British
Coal, British Airways) to private ownership
 Natural Resources include: coal, oil, natural
gas
 London is center of trade
Germany
 Socialist Market Economy: market, state
control, social welfare where help is
given to the poor.
 1990: West Germany and East Germany
united, West Germany absorbed huge
cost’s bringing East Germany’s
command economy into its market
system
Germany
 Strongest economy in Europe
 Competes with Italy to sell chemicals,
machinery, and food
 Investment in human capital and capital
equipment led to its economic strength
Germany
 Investment in capital equipment is a
priority for German companies and
government
 Government created vocational schools
and universities to train workforce
 Natural Resources include: rivers, forests,
large deposits of coal and iron ore
Russia
Mixed Market Economy

 Struggled in transition from command
under Soviet Union to a market economy
 Government owned businesses are being
sold to private ownership
 Financial problems: huge cost to upgrade
old manufacturing plants and industries to
modern standards
Russia
Natural Resources are plentiful
but due to their location they
cannot be harvested
St. Petersburg is center for trade
Volga River used for shipping
items and hydroelectric power
Russia
Russia and Ukraine have lower GDP’s than

other European countries
 Both countries are rebuilding their economies
after suffering serious financial problems once
they became independent in 1990s
 In Ukraine: educational systems suffered because
their was little money for schools and to pay teachers
 Russia: years of low capital investment left
manufacturing plants with old outdated material
European
Set up to establish free trade in Europe
Union

 Makes up 1/5 of the world’s trade
 EU does not have tariffs among member
nations, but does against countries
outside of the EU
European
EU
does
enforce
quotas
within
member
Union
countries to give everyone equal

advantage
 IF foreign countries don’t follow
specific quota, human rights, or
environmental restriction rules, an
embargo will be put in place
Entrepreneur
s
 Someone who uses their own talents to open
their own business.
 Europeans do not have as many entrepreneurs
as the United States
 Reasons include: high taxes, lots of regulations,
and job security
 EU is urging member countries to reduce taxes
and regulations on small business and help set
up training programs on how to run a business
European Economy Page 29
Free 100 – 80
Mostly Free 79 – 70
Moderately Free 69 – 60
Mostly Unfree 59 – 50
Repressed 49 - below
Russia 50.6
Germany 74.4
United Kingdom 76.4
Market
Market
Mixed
Russia
Germany
United Kingdom
Summarize It Page 30
Directions:
- Topic is the 4 Economy
Countries / Groups we
have discussed
- Write definition of the
type of
economy/government
- Summarize the economy
- Cut out & Glue into IN