Economics of Latin America

Panama Canal Video Clip Question – 1. How does the Panama Canal work?

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.

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:  m m m  Questions: 1. What are the warships going to do? 2. What implications does this have for the US?

SWITCH  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:goldironcoppersilvernickel

 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  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:  stm stm stm  Answer these questions in your NOTEBOOK: 1. What are the positive and negative effects of NAFTA. - Answer them for both Mexico and the US

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 - Trade Group Mercosur - Trade Group South American Common Market Created to increase trade, increase South American GDP’s Similar to EU and NAFTA Mercosur member nations

Mercosur  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

Chile  South America’s greatest economic success story. 1. Global Trade 2. Exports Food and COPPER 3. Mercosur allows them to trade freely. GDP per capita – Chile = Blue Rest of South America = Orange

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