Economy/Natural Resources/Problems of Middle

& South AmericaHonors World Geography

Mexico Regional BackgroundMexico is divided into 31 states

Mexico’s Regions:Greater Mexico City (1)Central Mexico (2)Gulf Lowlands (3)Southern Mexico (4)Northern Mexico (5)

Greater Mexico CityMexico City is the cultural, economic & political center of Mexico

Holds ¼ of Mexico’s entire population

Headquarters to leading industry/banks Mexican stock exchange Major industries include: textiles, plastics, etc.

Tourism is also a major economic activity Tourists come to see Aztec ruins, colonial buildings

Greater Mexico City continuedProblems in Mexico City:

Overcrowding (1)Unsafe water supply (2)Large homeless population (3)No electricity for some (4)No sewage system for some (5)Air pollution (6)

Why???? Mexico City sits in Valley of Mexico, surrounded by mountains,

pollution is trapped in valley by mountains

Central Mexico Stretches NW of Mexico City & across the Mexican Plateau

Mexico’s 2nd largest city located here --- Guadalajara

Largely agricultural Fertile valleys

Once colonial Mexico’s grain producing region

Today, agriculture in region is a mix of small family farms & medium-size commercial farms

Grow a number of cash crops: crops grown for sale in a market

Much grown here sold in the U.S.

Gulf LowlandsGulf Lowlands hot humid tropical forests & savannas used for grazing & growing sugarcane

Many commercial farms & ranching

Includes city of Veracruz, imp. seaport/communications center

Rich deposits of oil/natural gas in this region Development of oil refineries, pipelines, fertilizer plants

Southern MexicoMountainous areas of Southern Mexico/plains of Yucatán Peninsula

Mexico’s poorest region---Why? Few cities/little industry (1) Poorly developed transportation/telephone service (2) Inadequate schools (3)

Mexico’s most traditional region---Why? Village life/subsistence farming (1) Handcrafts provide cash income (2) Mexican Indians make up ½ of population (3)

Northern MexicoHas become most prosperous part of Mexico

Newer roadsBetter communication

Contains city of Monterrey—very industrialized

Migrant workers drawn to area to work in factories

Northern Mexico continuedBorder towns

Many business in borders towns linked to U.S.

MaquiladorasAmerican owned factories that lie on Mexican side of U.S./Mexico

border

Factories assemble products, such as auto parts/toys, for export to the U.S.

Mexico’s Challenges for the FutureEconomic inequality (1)

Majority of Mexicans poor, much of wealth lies in hands a few Many Mexicans have fewer economic opportunities Slowing inequality could slow migration to U.S.

Reducing crime (2) Crime results from poverty Drug smuggling to U.S.

Improving country’s poor infrastructure (3) Improve water supply, roads, sewage systems

Central American Economy Central America depends heavily on the exportation

of crops such as: Coffee (1)Bananas (2)Cotton (3)Sugar (4)Cacao (5)

Cacao: type of tree from which we get cocoa beans; used to produce chocolate

Central American Economy continuedEcotourism in Costa Rica

Mid-1980’s--- Costa Rica found a way to protect the environment & make money

Ecotourism: Focuses on guided travel through natural areas & on outdoor

activitiesVisitors observe wildlife

Benefits of Ecotourism in Costa Rica:Hotels/other businesses opened to create new jobs (1)Cost of tours provides income for the economy (2)

Central American Economy continuedPanama Canal

Completed in 1914 by the United States

Allows ships to move from the Atlantic Ocean & Caribbean Sea to the Pacific Ocean

Important economic resource to Panama

Controlled by the U.S. until 1999

Central American ProblemsLand Reform (1)

Rich landowners control most of the landRaise cash crops

Mostly subsistence farmers in Central AmericaSubsistence farmers have trouble selling crops due to rich

landowners controlling agricultural market

Violence/Civil War (2)Weak gov’ts in Central America have experienced times of

civil warEl Salvador, Nicaragua

Caribbean EconomyMost Caribbean countries have market economiesBusinesses/farms are privately owned & decide what to

produce

Cuba has a command economyCommand economy: economic system in which the gov’t

decides what to produce, where to make it & how much to charge

Caribbean largely agriculturalGrow crops such as sugar, bananas, citrus fruits

Caricom: Caribbean Community & Common MarketAn economic union formed by Caribbean countries in order

to promote trade & industry

Caribbean Economy continuedTourism

Caribbean countries see tourism promoting economic growth

Tourism has problemsResorts can take land away from farmers (1)

Jobs in tourist industries are mostly seasonal & low paying (2)

Raised cost of living (3)

Caribbean ProblemsPopulation growth has led to:

Small living area (1)

Unemployment (2)

Immigration increase to the U.S. (3)

Too much urbanization (4)

South American EconomyMany South American countries have a high standard of living and a growing middle class

Agriculture in South America ranges from subsistence farming to huge commercial farms & ranches

Market oriented farming is most highly developed

Brazil produces more coffee than any other country in the world

South American Economy continuedMost South American factories produce food items, consumer goods, or building materials for local markets

Larger countries also produce cars, trucks and jet airplanes

Mercosurtrade organization-Southern Common Market

The purpose of Mercosur is: expand trade, improve transportation & reduce tariffs among member countries

Members are: Argentina, Brazil, Paraguay and Uruguay

South American ProblemsEnvironmental (1)

Amazon River BasinClearing of rainforestsThreatens plant/animal lifeThreatens the way of life Amazonian Indians

Growing Population needs more resources (2)

Border disputes (3)Ecuador vs Peru

Drug Trading in Colombia (4)