export campesino latifundia minifundia cash crop gross domestic product service industry ...
TRANSCRIPT
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LATIN AMERICA TODAY
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THE ECONOMY
Export Campesino Latifundia Minifundia Cash crop
Gross domestic product
Service industry
Maquiladora Free trade
zone
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ECONOMIC ACTIVITIES Agriculture
› Supplies major chunk of income› Export- sell to other countries what is produced
Ex: Bananas, sugarcane, coffee› Land divided into wealthy and campesinos
Rural farmers and workers› Latifundia
LARGE estates owned by wealthy families and corporations
› Minifundia All other farms
› Cash crops- produced in large quantities to sell abroad
› Problem is overdependence
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INDUSTRY Most are developing countries
› EX: Mexico- from farming to oil production
› 2005- manufacturing = 16% and agriculture 4% of Gross Domestic product (GDP) Values of goods and services produced in a country in a year
Moving towards service industry› Provides a service› Ex: tourism
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GROWTH Limited in Latin America Andes and Amazon Rainforest restrict
availability of natural resources Foreign investment Political instability Solution
› Stable gov’t› Provide the necessary resources› Active business communities
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MAQUILADORAS Manufacturing plants owned by foreign
countries› EX: Mexico› Cuidad Juarez, and Tijuana› 3,200 employ over 1 million workers› Located in free-trade zones
No trade restrictions
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TRANSPORTATION and COMMUNICATION
Physical barriers Pan-American Highway
› Northern Mexico to Southern Chile Trans-Andean Highway
› Chile to Argentina Brazil
› Trans-Amazonian Highway Trans-Oceanic Highway
› Peru and Brazil› Link between the Amazon and the Pacific
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TRANSPORTATION and COMMUNICATION (cont)
Railway System› Mexico, Panama, Argentina, Brazil
Air Travel› Important to overcoming geographic barriers
Communication› Censored during political unrest› Most cannot afford telephones
2004› Brazil & Mexico among top 15 countries with the
highest rate of computer use Today- internet hub in D.R. to make it more
stable
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FOREIGN DEBT 1960s and 1970s
› Latin American countries borrowed $$ from banks to industrialize
1980s› Economic slow-down› Lower demand for Latin American products
› Could not repay loans Problem is finding a solution
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TRADE and INTERDEPENDENCE NAFTA› 1992 NAFTA› Reduced trade restrictions› Increased flow of goods, services, and
people› Trade went up by 10-15%
Controversy› U.S. job loss to less paid Mexican
workers› U.S. investment in Mexico, but no
relocation
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TRADE and INTERDEPENDENCE (cont)
CAFTA› 2005› U.S. + 6 Central American countries› Goal was to lower trade barriers between U.S.
and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and D.R.
FEAR› U.S. job loss› Exploitation of lower paid workers
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THE PAN-AMERICAN HIGHWAY
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THE PEOPLE and THEIR ENVIRONMENT
KEY TERMS:› DEFORESTATION
› SUSTAINABLE DEVELOPMENT
› SLASH and BURN FARMING
› REFORESTATION
› SHANTYTOWN
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MANGING RESOURCES Deforestation- disappearing of forests for
other uses Solution:
› Sustainable development- use only what natural resources are needed to sustain life
Farms vs. Forests› Clearing of the Amazon Basin to set-up new
farmland› Slash-and-burn farming
All plants are cut down; trees are stripped of their bark; once dried out they burn it so that the soil gets nutrients
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BIODIVERSITY Diverse rainforest is at danger of being
lost ½ of all plant and animal species live in
the rainforest 20% of the Amazon Rainforest has already
been cleared Atlantic Forest
› Lesser known› In Brazil› 7% of its original size today
MEDICINE
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REFORESTATION Planting for the future
› Laws require that young trees or seeds be planted for the future
› Developing new methods of farming
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HUMAN IMPACT Rapid urbanization = environmental issues Workers move to cities
› Hope to find a better life› Sometimes they DON’T › Shantytowns- makeshift communities on the
edge of cities› unsanitary
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THE FUTURE Territorial conflict
› Disputed border wars› Ex: 1998 Peru and Ecuador settled a 60 year
border war Natural Disasters
› L.A. vulnerable to hurricanes, earthquakes, and volcanic eruptions
Cool Fact› In 1995 a volcanic eruption left 2/3 of the
island of Monserrat inhabitable