Free Enterprise and the Economy of Texas Free

Free Enterprise and the Economy of Texas

Free Enterprise and the Economy of Texas Learning Objectives • Describe changes the Texas economy went through in the late twentieth and early twenty-first centuries. • Analyze the impact of international trade with Mexico on the production of goods and services in Texas. • Identify key components of the Texas economy now and in the future.

Free Enterprise and the Economy of Texas

Free Enterprise and the Economy of Texas Our large economy is made possible due to the Free Enterprise System which is… An economic system in which business compete for profits

Qualitites of Free Enterprise System 2 1 (start here!) 5 3 4

People are free to buy and sell whatever they choose.

Prices are based on the laws of supply and demand

The government has minimal involvement in regulating or taxing trade.

Businesses try to produce better products at cheaper prices to increase their sales and profits

Banks are more willing to invest in businesses.

Changes to The Texas Economy • Since the early 1900 s, the oil industry has been the backbone of the Texas economy. • The state suffered when oil prices fell.

Effect: Changes to The Texas Economy • Business and government leaders knew that the state economy needed to diversify, diversify or become more varied, if it were to continue to grow.

The Texas Economy Today The diversification of the Texas economy has led to the growth of jobs in fields including healthcare, technology, research and development.

Recent Changes in the Texas Economy What were the most important industries in the Texas economy according to the graphic above?

The Texas Economy Today Based on this information, what predictions can you make about Texas’s employment composition in the future? Which industries will become more important and which will become less important?

Trade with Mexico Texas trades with many states and nations, but Mexico is the state’s largest trading partner. Texas earns billions of dollars each year from this partnership. Why do you think Mexico is our largest trading partner?

NAFt. A • Leaders in Mexico, the United States, and Canada signed a landmark trade agreement in 1994. • The North American Free Trade Agreement, or NAFTA, removed most of the trade barriers between the United States, Mexico, and Canada. • Its supporters said that it would increase trade.

Trade with Mexico Men and women work at a plant in Mexico. Foreign companies, many from the United States, build maquiladoras (factories) in Mexico to take advantage of low labor costs. How do maquiladoras benefit both Mexico and Texas?

Trade with Mexico Based on this infographic, how has NAFTA most benefited Texas and Mexico? Answer on your graphic organizer.

review: Industries of texas Think about the eras of Texas history that we’ve studied thus far. Put the following key industries of Texas in chronological order: Oil and gas Production Cattle Ranching 3 2 Real Estate: Buying and selling property (white collar services) 4 Computer Technology 5 Agriculture 1