Economics of Latin America

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.

Panama Canal Video

OPEC Organization of Petroleum Exporting Countries Venezuela is a member Money from high oil prices has allowed them to purchase warships

Venezuela Check out this article and watch the clip: http://news.bbc.co.uk/2/hi/americas/7628899.stm Questions: 1. What are the ships going to do? 2. What implications does this have for the US?

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 Caribbean island resorts Generates income Provides jobs

NAFTA North American Free Trade Agreement Important trade agreement creating a huge zone of cooperation on trade and economic issues in North America Mexico trying to reduce poverty and increase industrialization

Maquiladoras Factories in Mexico used to assemble imported materials into finished products and export them mostly back to the US Located mainly along northern border of Mexico Examples of goods-electronic equipment, clothing, furniture

Maquiladoras

Where people live 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 tourism industry that do not include benefits or protection of workers

FTAA 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 Economic common market that began operating in the southern cone of South America in 1995 Goals—to make members’ economies more stable, increase trade in the region, to use some money to improve the most needy

Greatest South American success Story The country of Chile: Participation in global trade Abundant Natural Resources

Corruption Corruption - Acting dishonestly or immorally. A history of corruption is one reason most Latin American countries are still developing economically.