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
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