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Vocab 5

Latin American Government and Econ

TermDefinition
Unitary Government system of government where power comes from the central government, local governments have little power (France, Cuba, UK)
Confederation system of government where the power comes from the local (or regional) governments and the central government has little power (like the European Union)
Federation system of government where power is shared by the central government and the local (or regional) governments (USA, Mexico, Brazil, Canada, Germany)
oligarchy citizen participation is low because a group of people is really in charge of the government
democracy citizen participation is high since the people select the leaders through a voting process (USA, Mexico, Canada, Brazil)
government of Brazil presidential democracy in South America, citizens have guaranteed rights to vote, travel, speak as they wish, most adults are required to vote
government of Mexico – presidential democracy in North America, citizens have guaranteed rights to vote, travel, speak as they wish
government of Cuba Communist dictatorship, citizens are guaranteed fewer freedoms
traditional economy economy based on bartering where people tend to live on farms and in small communities. Very little money is used. The consumer doesn’t have a lot of choices since most goods are handmade.
command economy economy run by the government (like Cuba); government owns the large companies and the government decides what to make and how much to make. The consumer has little power in this system since the government runs the economy. Associated with Communism.
market economy economy that is run by the producers and consumers who buy and sell goods and services, together they run the economy; based on the principles of supply and demand
mixed economy a combination of the market economy and the command economy; while the economy is run by the consumers and the producers, the government also sets limits and establishes regulations which affect the economy (like the US, Canada and Brazil)
NAFTA North American Free Trade Agreement, trade agreement between Canada, Mexico, and the US which allows for free trade between those 3 countries
4 economic questions What should be produced? How should that be produced? How much should be produced? Who gets what is produced?
Created by: tamarahamlin