MIDDLE AMERICA II(CHAPTER 4: 196-221)
NaturalResources
MAQUILADORASTijuana
NogalesCiudadJuarez
Matamoros
Reynosa
Monterrey
Chihuahua
GDP PER CAPITA ALONG THE US-MEXICAN BORDER
• Initiated in the 1960s as coupon houses
• Assembly plants that pioneered the migration of industries in the 1970s
• Today
– >4,000 maquiladoras
– >1.2 million employees
MAQUILADORAS
• Modern industrial plants
• Assemble imported, duty-free components/raw materials
• Export the finished products
• Mostly foreign-owned (U.S., Japan)
• 80% of goods reexported to U.S.
• Tariffs limited to value added during assembly
MAQUILADORAS
• Maquiladora products
MAQUILADORAS
• Electronic equipment• Electric appliances• Auto parts• Clothing• Furniture
• ADVANTAGES
– Mexico gains jobs.
– Foreign owners benefit from cheaper labor costs.
• EFFECTS
– Regional development
– Development of an international growth corridor between Monterrey and Dallas - Fort Worth
MAQUILADORAS
NAFTA
• Effective 1 January 1994 • Established a trade agreement between
Mexico, Canada and the US, which:
–Reduced and regulated trade tariffs, barriers, and quotas between members
–Standardized finance & service exchanges
NAFTA
How has Mexico benefited from NAFTA?
MEXICO AND NAFTA
• Foremost, it promises a higher standard of living.
• NAFTA creates more jobs for Mexicans as US companies begin to invest more heavily in the Mexican market.
• Mexican exporters increase their sales to the US and Canada.
• Is that the entire story?
U.S. TRADE WITH CANADA & MEXICO
• Canada remains as the United States’ largest export market.
• Since 1977, Mexico has moved into second place (displacing Japan).
• 85% of all Mexican exports now go to the United States.
• 75% of Mexico’s imports originate in the United States.
ALTITUDINAL ZONATIONMiddle & South America’s Vertical Climate Zones
ALTITUDINAL ZONATION
SeaLevel
SeaLevel
2500’ 750 m
TIERRA CALIENTE(Hot Land)
Bananas, Cocoa, Sugar, Rice
Middle & South America’s Vertical Climate Zones
6,000’ 1800 m
ALTITUDINAL ZONATION
SeaLevel
2000’ 600 m
SeaLevel
TIERRA TEMPLADA (Temperate Land)
Coffee, Rice, Corn, Sugar
ALTITUDINAL ZONATION
SeaLevel
6,000’
2000’
2,000 m
600 m
SeaLevel
12,000’ 3,600 m
TIERRA FRIA(Cold Land)
Corn, Wheat, Potato
12,000’ 3,600 m
ALTITUDINAL ZONATION
SeaLevel
6,000’
2000’
2,000 m
600 m
SeaLevel
TIERRA HELADA(Frost Land)
Middle & South America’s Vertical Climate Zones
CENTRAL AMERICA
THE REPUBLICS
• Guatemala• Belize• Honduras• El Salvador• Nicaragua• Costa Rica• Panama
ENVIRONMENTAL CONCERNS
• Tropical Deforestation
• 3 million acres of woodland in Central America disappear each year!
What are the causes of tropical deforestation?
What are the alternatives?
CAUSES OF TROPICAL DEFORESTATION
• Clearing of rural lands to accommodate meat production and export
• Rapid logging of tropical woodlands to meet global demands for new housing, paper, and furniture
• Population explosion: forests are cut to provide crop-raising space and firewood
• What is the solution?
THECARIBBEAN
BASIN
THE CARIBBEAN BASIN
• The Greater Antilles– Cuba– Hispaniola– Jamaica– Puerto Rico
• The Lesser Antilles
TOURISM: A MIXED BLESSING?
• Advantages– State and regional economic options– A clean industry– Educational
• Disadvantages– Disjunctive development– Degrades fragile environmental resources– Inauthentic representations of native cultures
MIDDLE AMERICA II(CHAPTER 4: 216-235)