1. Economics of Latin America To get the file: - Go to My Computer – S:) Student Read Only – Orso Folder – Latin America Folder – Open the file called Economics – LA – 10.

2. Natural Resources – abundant like the US Minerals:goldironcoppersilvernickel

3. Natural Resources Strong Agriculture:  good climate  fertile soil

4. Colonial Economic Influences in the Caribbean 1. Europeans: A) Extracted minerals – Gold and Silver B) Set up sugar plantations - tons of money for Spain, Britain, France through the Rum Trade 2. Indians and Africans: - Used as forced labor (slaves)

5. Economic Growth after Colonialism - Tourism Caribbean island resorts  Generates income  Provides jobs

6. Cash Crops Cash Crops - Crops grown for direct sale, not for use in the region  Examples: sugar, bananas, citrus fruits, coffee  Profits go to wealthy land owners and commercial farms  Commercial farms push poor people off their land because they can not sell their goods at a competitive price. Commercial Farms = large farms that run like a factory Commercial cotton farm in Brazil

7. Informal Economy  Informal Economy - jobs found in the urban areas that do not include benefits or protection of workers, doing whatever is possible to make money  Examples – doing hair on the street for tourists, selling homemade tamales

8. Maquiladoras  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 Benefits:  Mexico gets: Jobs, decreased unemployment  US Gets: Cheap labor for corporations, cheap goods for consumers

9. 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.

10. Trade Alliances – countries working together economically  In order to compete globally, Latin American countries participate in trade alliances. –Similar to the European Union –Countries give each other deals on certain goods –This creates new economic opportunity and reduces barriers to trade

11. 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

12. OPEC  Organization of Petroleum Exporting Countries –Venezuela, Ecuador is a member  OPEC sets oil prices  Oil makes member nations rich  Money from high oil prices has allowed them to purchase warships

13. 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

14. Mercosur - Trade Group Mercosur - Trade Group Mercosur - South American Common Market Created to increase trade, increase South American GDP’s, make trade easier between South American countries Similar to EU and NAFTA Mercosur member nations

15. Greatest South American success Story  The country of Chile: –Participation in global trade –Abundant Natural Resources

16. Chile  South America’s greatest economic success story. 1. Global Trade – strong natural resources 2. Exports Food and COPPER 3. Mercosur allows them to trade freely with other South American nations. GDP per capita – 1945-2000 Chile = Blue Rest of South America = Orange

17. Corruption – when government officials break the law  Examples – taking bribes, letting crimes go unpunished  A history of corruption is one reason most Latin American countries are still developing economically.  Immigration push factor  pushes Mexicans to the SW of the US