Transcript Cattle Cotton and Crude PPT-amend.ppt

Growth
and
Development
You will need to complete the note guide
as you read through the PowerPoint.
You will be introduced to several economic
terms throughout this PowerPoint. Write the
definitions of key economic terms on your
note guide. Economic terms that need to be
defined are in red.
What are we talking about when we speak of
the economy?
The economy is the
wealth and
resources of a
nation and how they
are managed.
In the U.S. and in Texas, we have a free
enterprise or market economy.
In a free enterprise economy
individuals have the right to own
businesses and to make money
with limited government
interference.
Simply stated, you are free to
buy what you want, sell what
you want, make what you
want, and provide any service
you want with very few
restrictions.
Imagine that
you are an
entrepreneur,
or a risk
taking
business
person.
You have capital that you would like to invest in
a business. Capital is the…
equipment,
or money
factories,
used to produce goods
or services.
You want to
invest your
capital wisely so
that you make a
profit, or make
money.
Some of you may be
familiar with
businesses that have
historically been
important in the
Texas economy such
as…
cattle
oil
cotton
Historically, the Texas economy has fallen into
two categories:
Agribusiness and Petroleum Industry
Agribusiness- business related to the
production, processing, and distribution of
agricultural products.
Petroleum Industry- the production and
distribution of oil and natural gas.
The agribusiness and petroleum industries have
been good to Texas, but these businesses can be
risky because they are greatly affected by a
boom/bust cycle in the economy.
Boom
Boom
Bust
Bust
A boom/bust economy is one that has a cycle of
intense highs and lows.
Simply put,
when things
are good they
are great,
but when
they are bad,
they are
terrible.
When the economy is
booming, the prices
of cattle, crops, and
oil are high, thus
bringing profit to
Texas
When the economy is
in a bust cycle,
prices are low and
small profits are
made.
Many years ago Texan
entrepreneurs
realized that an
economy based on
businesses that are
affected by the
boom/ bust cycle
would not be the best
for the state’s
economy.
Diversification, or
increasing the variety of
products, has been key
to a strong Texas
economy.
Texas has a very
strong economy today
because we have
diverse industries.
The next slides are on the
modern Texas economy. List
these industries in the
“Texas Industries Today”
section of your student
note guide.
Agribusiness and the petroleum industry are
still strong in Texas today, but we have
developed the following industries as well:
Petrochemical Industry
Petrochemicals are chemicals or products made
from petroleum or natural gas such as:
rubber
synthetic fibers
plastics
cosmetics
Computer/ Electronics Industry
Telecommunications Industry
Aerospace Industry
Service Industries
banking
and
financial
education
medicine
and health
care
Real Estate Industry
Tourism Industry
These industries, coupled with our geography and
abundant natural resources, make Texas a very strong
presence in the global marketplace.
What is important
to remember
about the “Growth
and Development”
of Texas?
What is the
overarching, or most
important, theme?
Texas’ strong standing in the
world today originated from its
diverse leaders, geography and
resources.
We’ve come a long way from:
cowboys
to
the cosmos!