Geographic Factors and Natural Resources Latin America

Latin America’s Natural Resources Mexico is a treasure chest of minerals. The country has deposits of silver, gold, copper, coal, iron ore, and just about any other mineral you can name. Mexico also has huge amounts of oil and natural gas. Trees also cover nearly a quarter of Mexico’s land.

Central America Central America’s climate and rich soil are good for farming. The people grow coffee, cotton, sure cane, and bananas. They also plant cacao trees which are used to make chocolate and cocoa.

The Caribbean: Farming Resources Caribbean countries also have rich soil and a good climate and grow many of the same things that Central America grow as well as citrus fruits. Jamaica is one of the world’s main producers of bauxite – a mineral used to make aluminum. Cuba and the Dominican Republic have nickel deposits, while Trinidad is rich in oil.

South America Businesses drill for oil in many South American countries, but much of the oil is found in Venezuela. South Americas plants and fish are natural resources, too. Forests cover about half of the continent and trees from these forests provide everything from wood for building to coconuts for eating. People harvest many rain forest plants to make medicines. Tuna, anchovies, and other fish are plentiful. Coffee is a key crop in Brazil and Colombia.

Natural Resources and Economy Many people in Latin America make their living by farming. When the price of a crop goes down, exports of that crop bring less money into the country. As a result, workers’ wages may drop, and some workers may lose their jobs. Weather and disease also cause people and businesses to lose money. Hurricanes, droughts, and plant disease can damage crops, and weather can also hurt the fishing industry.

Depending on Oil Oil is one of Latin America’s most valuable resources. But it is risky to depend on oil because oil prices increase and decrease, sometimes suddenly. In the 1960s, oil was discovered in Ecuador. Soon, oil became the country’s main export. But in 1987, earthquakes, destroyed Ecuador’s major oil pipeline and the country’s income was slashed.

Avoiding the Problems of a One- Resource Country Latin American nations know the risks of depending on one resource or crop and they are trying to diversify their economies. When Latin America nations try to diversify their economies, it means that they are looking for other ways to make money. Many are building factories to make products that can be sold to bring more money into the economy. Factories also provide jobs for people.