Transcript Economics of Latin America

Economics of Latin America
To get the file:
- Go to My Computer –
S:) Student Read Only
– Orso Folder – Latin
America Folder – Open
the file called
Economics – LA – 10.
Venezuela
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Check out this article:
http://news.bbc.co.uk/2/hi/americas/7628899.st
m
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Questions:
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1. What are the warships going to do?
2. What implications does this have for the US?
OPEC
 Organization
Countries
 Venezuela
 Money
of Petroleum Exporting
is a member
from high oil prices has
allowed them to purchase warships
SWITCH
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Now switch over to the worksheet.
Do not take notes in your notebook
anymore
Your goal is to use the notes on the slides
to complete the worksheet
Attach the worksheet into your notebook
next to your Trade intro page.
Natural Resources
Minerals:
gold
iron
copper
silver
nickel
Natural Resources
Agriculture:
good climate
fertile soil

Colonial Influences in the
Caribbean
Spanish:
Established sugar plantations
Indians and Africans:
Used as forced labor
Cash Crops
Crops
grown for direct sale,
not for use in the region
Examples: sugar, bananas,
citrus fruits, coffee
Benefit land owners, not
workers
Economic Growth after Colonialism - Tourism
Caribbean island resorts
 Generates income
 Provides jobs
NAFTA

North American Free Trade
Agreement

Trade agreement creating a
cooperative trade zone between the
US, Canada, and Mexico

Mexico trying to reduce poverty and
increase industrialization
NAFTA Article
Access the article below:
 http://news.bbc.co.uk/2/hi/americas/3492
009.stm
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Answer these questions in your
NOTEBOOK:
1. What are the positive and negative
effects of NAFTA for Mexico?
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2. What are the positive and negative
effects of NAFTA for the US?
Maquiladoras

Maquiladoras - Factories in Mexico used to
assemble imported materials into finished
products and export them mostly back to the US
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Located mainly along northern border of Mexico

Examples of goods-electronic equipment,
clothing, furniture

Mexico gets: Jobs, decreased unemployment
US Gets: Cheap labor for corporations, cheap
goods for consumers
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Maquiladoras
Where people live
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Central America-agriculture still
important
Caribbean islands-tourism
important
Would these jobs be found in
urban or rural areas?
Informal Economy

jobs found in the urban areas that do not
include benefits or protection of workers
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Examples – doing hair on the street for
tourists
FTAA
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Free Trade Area of the Americas
Offers greater trading
opportunities, world markets and
economic growth for member
countries
To include all countries of North
and South America except Cuba
Designed to expand NAFTA
Mercosur - Trade Group
•South American Common
Market
•Created to increase trade,
increase South American
GDP’s
•Similar to EU and NAFTA
Mercosur member nations
Greatest South American success
Story
 The
country of Chile:
– Participation in global trade
– Abundant Natural Resources
Chile

South America’s
greatest economic
success story.
GDP per capita – 1945-2000
1. Global Trade
2. Exports Food and
COPPER
3. Mercosur allows
them to trade
freely.
Chile = Blue
Rest of South America = Orange
Corruption – when government officials
break the law
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Examples – taking bribes, letting crimes go
unpunished
A history of corruption is one reason most
Latin American countries are still developing
economically.
Immigration push factor  pushes Mexicans
to the SW of the US
Panama Canal

Panama Canal is a
system of locks that
shortens the travel time
and distance from the
Pacific Ocean to the
Atlantic Ocean

Panama Canal is an
economic chokepoint in
Latin America.