Economics in Latin America

Natural Resources Minerals:  gold  iron  copper  silver  nickel

Success of Agriculture Agriculture in Latin America has been successful because of: Agriculture in Latin America has been successful because of: – good climate – fertile soil

Colonial Influences in the Caribbean Spanish:  Established sugar plantations Indians and Africans:  Used as forced labor

Tourism Caribbean island resorts help the economy of Latin America by:  Generating income  Providing jobs

Cash Crops  Crops grown for direct sale, not for use in the region  Examples: sugar, bananas, citrus fruits, coffee  Benefit land owners, not workers

Informal Economy  Jobs found in the tourism industry that do not include benefits or protection of workers

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

Maquiladoras

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

NAFTA  NAFTA stands for:  North American Free Trade Agreement  Definition:  Important trade agreement creating a huge zone of cooperation on trade and economic issues in North America

NAFTA  How does NAFTA affect Mexico? –Mexico is trying to reduce poverty and increase industrialization.  Economic Importance: –Creates jobs for millions of people in the member nations.

OPEC  OPEC stands for: – Organization of Petroleum Exporting Countries  Latin American Members: – Ecuador – Venezuela

OPEC  What does this organization do? – Helps member countries control worldwide oil prices.  Economic Effects: – Stabilizes and maintain the country’s source of income.

FTAA  FTAA stands for:  Free Trade Area of the Americas  Definition:  Offers greater trading opportunities, world markets and economic growth for member countries

FTAA  Which countries are members?  all countries of North and South America  Which country is EXCLUDED?  Cuba

Mercosur  Definition: – 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

Mercosur  Members: – Brazil –Paraguay –Uruguay –Argentina –Bolivia –Chile

What do ALL the trade alliances have in common?