Transcript Latin America Economies PPT File

Latin American
Economies
Mexico
Cuba
Guatemala
Brazil
Mexico’s Economy and
Government
• Mexico’s economy today is a market economy supported
by a democratic government
• During the 20th century, Mexico’s economy became
more industrialized as factories were built and
entrepreneurs started businesses.
• Ejidos still make up about half of the farmland in Mexico,
but many farmers elected to change the community
owned land (ejidos) to private land by dividing it up
between farmers. This is an example of privatizationreplacing community ownership with individual
ownership.
• Advanced technology and industry have made Mexico a
developed country.
Role of the Government
• During the mid-1900’s, Mexico’s government
built new power plants to supply energy to
factories and built homes for factory workers.
• The government assisted new companies
through loans, lower taxes and strategies for
paying back the loans.
• This encouraged production, new factories, new
highways, railroads and airports to aid in
distribution of products.
• Businesses became privatized as the
government sold them to private companies.
Imports to Mexico
• Many US companies established factories along the
border with Mexico.
• These are known as maquiladoras
• These factories import parts from the US to use in
products that are exported back to the US after
production
• These parts are duty or tax free to keep operating costs
low.
• Other imports include steel mill products, aircraft parts,
machinery
Exports from Mexico
• Mexico exports many minerals such as silver
lead, zinc, graphite, sulfur and copper.
• Oil/petroleum is Mexico’s greatest export and
the US is the greatest buyer of Mexican
petroleum
• The petroleum industry in Mexico is a
nationalized industry which means it is
controlled by the government. (PEMEX is the
agency which controls this industry)
• GDP is $1.483 trillion
• GDP per capita is $13,500
Cuba’s Economy and Government
• Cuba is a communist country and therefore has
a command economy.
• Cuba’s workforce works to support the national
government.
• In a command economy, the government
controls the production and distribution of goods
and services produced in that country.
• Since the collapse of the Soviet Union, Cuba
has struggled to maintain its Communist ways
without Soviet aid.
Cuba’s Imports
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Oil
Grain
Machinery
Chemicals
food
Cuba’s Exports
• Cuba’s largest export is Sugar
• At one time Cubans cut the canes with
machetes, but with Soviet aid, were able
to purchase machines to do the work. This
allowed the sugar supply to multiply
• GDP is $110.8 Billion
• GDP per capita is $9,700
Guatemala’s Economy and
Government
• Guatemala enjoys a democratic republic
with 3 branches of government
• Guatemala’s economy is largely based on
agriculture with half the workforce involved
in this industry
• 2000 boasted the highest GDP in Central
America
• Other industries include manufacturing of
food, beverages and clothing
Guatemala’s Imports
• Tourists come from around the world to visit the
ancient Maya ruins
• Oil
• Natural gas
• Electricity
• Machinery
• Construction equipment
• Grain
• fertilizers
Guatemala’s Exports
• The United States is the greatest trading
partner with Guatemala
• Exports include textiles, clothing, cut
flowers, winter fruits, bananas, cardamom,
and sugar
• Largest export is coffee
• GDP is $69.22 Billion
• GDP per capita is $5,200
Brazil’s Economy and Government
• Brazil is a democratic government
• This country has the largest economy in
South America
• There is both privatized and nationalized
industry in Brazil
• The government controls the auto industry
• Agriculture and logging are leading
industries in Brazil
Imports to Brazil
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Oil
Natural gas
Machinery
Chemical products
Electronics
Auto parts
Exports from Brazil
• Coffee-Brazil produces more coffee than
any other country in the world
• Other exports include oranges, bananas
and corn
• GDP is $1.482 Trillion
• GDP per capita is $10,200
Summarize
• What is used to determine the health of a
country’s economy?
• How can you determine how economically
developed a country is? Underdeveloped?
Developing?
• What role does a government play in a country’s
economy?
• What are some advantages to a free-market
economy?
• What is the difference between privatized and
nationalized industry?