6MAQUILADORAS >4,000 maquiladoras >1.2 million employees Initiated in the 1960s as coupon housesAssembly plants that pioneered the migration of industries in the 1970sToday>4,000 maquiladoras>1.2 million employees
7MAQUILADORAS Modern industrial plants Assemble imported, duty-free components/raw materialsExport the finished productsMostly foreign-owned (U.S., Japan)80% of goods reexported to U.S.Tariffs limited to value added during assembly
8MAQUILADORAS Maquiladora products Electronic equipment Electric appliancesAuto partsClothingFurniture
9MAQUILADORAS Mexico gains jobs. ADVANTAGESMexico gains jobs.Foreign owners benefit from cheaper labor costs.EFFECTSRegional developmentDevelopment of an international growth corridor between Monterrey and Dallas - Fort Worth
10NAFTAEffective 1 January 1994Established a trade agreement between Mexico, Canada and the US, which:Reduced and regulated trade tariffs, barriers, and quotas between membersStandardized finance & service exchanges
12MEXICO AND NAFTA Foremost, it promises a higher standard of living. NAFTA creates more jobs for Mexicans as US companies begin to invest more heavily in the Mexican market.Mexican exporters increase their sales to the US and Canada.Is that the entire story?
13U.S. TRADE WITH CANADA & MEXICO Canada remains as the United States’ largest export market.Since 1977, Mexico has moved into second place (displacing Japan).85% of all Mexican exports now go to the United States.75% of Mexico’s imports originate in the United States.
14Middle & South America’s Vertical Climate Zones ALTITUDINAL ZONATIONMiddle & South America’s Vertical Climate Zones
15ALTITUDINAL ZONATION TIERRA CALIENTE (Hot Land) Middle & South America’s Vertical Climate ZonesTIERRA CALIENTE(Hot Land)Bananas, Cocoa, Sugar, Rice2500’750 mSeaLevelSeaLevel
20THE REPUBLICS Guatemala Belize Honduras El Salvador Nicaragua Costa RicaPanama
21ENVIRONMENTAL CONCERNS Tropical Deforestation3 million acres of woodland in Central America disappear each year!What are the causes oftropical deforestation?What are the alternatives?
22CAUSES OF TROPICAL DEFORESTATION Clearing of rural lands to accommodate meat production and exportRapid logging of tropical woodlands to meet global demands for new housing, paper, and furniturePopulation explosion: forests are cut to provide crop-raising space and firewoodWhat is the solution?