Nations and

Money
Our world has been divided by
humans into nations, or
countries. Most sources say
that there are 196 nations in
the world today, but even that
is disputable. So, what does it
take to make a nation? What
does it take to keep a nation
running?
Nations
Main Idea
1. What is a nation?
Explanation
A group of people
organized under a single,
usually independent
government


Nations
Main Idea
2. globalization
Explanation
Development of a
worldwide culture with an
interdepedent (depending
on others) economy
Growing connections based
on trade


Economy
Main Idea
1. Economy
Explanation
Way nations use and
manage resources

Each nation has a different
way of deciding how to use
and manage resources


Economy
Main Idea
2. Consumers



3. Producers
Explanation
People who buy and use
products


Owners and workers who
make products

People who consume may also be producers,
and people who produce may also be
consumers.
Consumers and Producers
TYPES OF ECONOMIES
Traditional
Economy
Command
Economy
Market
Economy
Mixed
Economy
Economy
Main Idea
4. Economic
system
Explanation
Answers questions of :
What goods and services to
produce
How to produce them
Who will receive them

Types of Economies
Main Idea
1. Traditional
Economy


Explanation
Individuals decide what to
consume and produce
Choices based on custom and
habit
- Goods are exchanged by
BARTER (Trade ) not money


Types of Economies
Main Idea
2. Command
Economy


Explanation
Government makes economic
decisions about resources (makes
products and sets prices)

Individuals have little freedom to
decide what to consume and
produce

Also called communism

Types of Economies
Main Idea
3. Market Economy
(Capitalism)


Explanation
Individuals make decisions
about what to consume
and produce

Businesses make what they
think customers want
Types of Economies
Main Idea
4. Mixed Economy


Explanation
Many economic decisions are
made by government (set
SOME prices)

Individuals get to make SOME
decisions

Also called socialism


Types of Economies
Main Idea
5. Developed
Country


Explanation
Nations with many industries
and more advanced
technology

Make money many different
ways

Workers have high incomes


Types of Economies
Main Idea
5. Developing
Country


Explanation
Nations with few industries
and simple technology

Mostly make money by
agriculture (farming)

Workers have low incomes


Supply and Demand
Main Idea
1. supply


2. demand
Explanation
The amount of a product that is
available for sale


The amount of a product that
people are willing to buy
Supply and Demand
Main Idea
3. Law of Supply and
Demand
Explanation
Determines the price of a
product
When demand for a product is
high, and supply of product is
low, price is high

When demand for a product is
low, and supply of product is
high, price is low

Resources, like people, are
not distributed evenly around
the world. Because most
countries have more than we
need of some resources and
not enough of others, trade is
important.
Trade
Main Idea
1. Trade
Explanation
Exchange of goods and
services
Some nations are rich in
one resource, and poor in
another.
provides people with needs,
AND jobs producing another
countrys needs

Trade
Main Idea
2. Export
Explanation
A good or service sold to
a foreign country


Trade
Main Idea
3. Import
Explanation
A good or service bought from
another country

TARIFFS tax charged by a
country on a product that is
imported

Tariffs make it cheaper to buy
American products than
imported products


Trade
Main Idea
4. NAFTA
Explanation
North American Free Trade
Agreement, between U.S.,
Canada, Mexico

Eliminated (got rid of) tariffs
on products traded between
the 3 nations


Trade
Main Idea
5. European Union
(EU)
Explanation
Britain, France, Italy,
Germany & 22 other nations
in Europe

Lower tariffs on trade
between all the nations


You now know that all
nations trade to get what
they need. The nations use
money , or currency, to
purchase goods and services.
Most nations use different
currencies.
Currency
Main Idea
1.Currency


Explanation
A form of money (comes in
bills and coins)

can refer to any object that
has value and can be
exchanged for other objects
(Goats or sheep or cows could be
currency if people thought they
were valuable.)


Currency
Main Idea

1. Dollar



2. Euro


Explanation

Currency of the United
States


Currency used by 17
European nations (all
members of European
Union)

Currency
Main Idea

3. Pound



4. Yen
Explanation

Currency used in
United Kingdom

Currency used in
Japan
Currency
Main Idea
5. Exchange
Rate
Explanation
converting one nations
money to anothers

How much one currency is
worth in another nations
currency


US Dollar 1.00 USD inv. 1.00 USD
Euro 0.785979 1.272299
British Pound 0.628932 1.589997
Indian Rupee 54.594994 0.018317
Australian Dollar 0.959732 1.041958
Canadian Dollar 0.999169 1.000831
Emirati Dirham 3.673202 0.272242
Swiss Franc 0.948176 1.054656
Chinese Yuan
Renminbi
6.237800 0.160313
Malaysian Ringgit 3.062124 0.326571
New Zealand
Dollar
1.225519 0.815981