MEXICO: The Economy

Economic Regions  Manufacturing and Mining = important!  Service Industries also important.  Service Industry: a business that provides services to people instead of making goods.  Banking & Tourism  Geography of Mexico influences the econ.  How? 3 major economic regions  The North, The South and Central Mexico

Central Mexico  The economic center of Mexico.  Home to more than ½ population.  Climate = good for agriculture.  Large industrial cities = Mexico City and Guadalajara help economy grow.  Mexico city has 24 million people and is center of Mexico’s government.

The North  The North econ region includes Baja & the northern part of the Plateau.  Irrigation aids in farming this land for:  Cotton, fruits, cereals, vegetables  Vaqueros (cowhands) ranch the area  Cattle, sheep, goats, pigs  Largest city = Monterrey = Steel Production  Mine = copper, silver, lead, zinc  Many work in Maquiladoras = Factories  Cars, computers, stereos, other electronics

The South  The South is from Mexico city to the Yucatan Peninsula  Poorest economic region of Mexico.  Most are Subsistence Farmers : who grow just enough for their families.  Wealthier farmers in the Basins grow coffee or sugarcane on Plantations: large farms that grow and sell a single crop.  Tourism is also important to this region.

Economic Challenges  Over the years, Mexico has Industrialized: where industry has replaced farming as it’s major economic activity.  Several problems arise as a country industrializes, Mexico has faced many.

Economic Challenges  Pollution : The Smog: fog mixed with smoke and chemicals, clouds in between Mexico’s mountain ranges.  Pollution can make people sick // Schoolchildren wear masks to school.  Farmers burn the forests to make room for crops, but less trees = less oxygen renewed.

Economic Challenges  Population Changes: Mexico’s population is growing 2x as fast as the USA.  Diet and healthcare improvements = people are living longer.  Mexico does not have enough jobs for it’s large population.  Many have left the country in search of work.

Economic Challenges  Free Trade: in 1993 = Mexico, USA, & Canada approved the North American Free Trade Agreement (NAFTA)  This agreement lets goods and money travel more freely between the 3 countries.  Many hoped that NAFTA would increase Mexico’s economy and create jobs.

Assignment  Please read about the Maya on pg. 163 and answer question #1 in a complete sentence and #2 using the Elephant Paragraph format:  Introduction sentence  Supporting information sentence  Outside information sentence  Concluding sentence  *NOTICE THAT #2 ASKS 2 QUESTIONS*