Monday, December 16th

Read “Economic & Social Development” from page

#161 in text.

After today… Students will be able to rank the

economic “health” of the countries that make up Latin America.

Students will understand the economic history of Latin America.

Students will determine the impact of trade agreements on the economy of LA.

Economic indicators According to chart 4.2 from page #161

who had the “highest” GNI per Capita PPP in 1999?

According to chart 4.2 from page #161 who had the “lowest” GNI per Capita PPP in 1999?

Rank from strongest to weakest GNI per Capita PPP

How did your ranking of strongest to weakest economies compare to chart 4.2?

Haves & Have Nots… Many Latin American

countries are part of the developing world.

They do not possess a large / reliable middle class. See page #165

Nearly 1/3 of all people in Latin America live on less than $2.00 a day

Source: Textbook

Conquistadors The “outside” world

has had an interest in taking advantage of LA’s economic riches since the first Spanish Conquistadors came searching for gold and other precious metals.

NEW Conquistadors??? Some people feel

that economic powers like the USA are still trying to take advantage of Latin American countries like Mexico through trade agreements like NAFTA.

Economic Imperialism

Read Maquiladoras AND

Foreign Investment from page #164 in textbook.

Maquiladoras Mexican factories that

line the border with the USA.

Are “American” companies taking advantage of Mexico’s proximity, low wage workers and sometimes lax environmental policies?

Outgrowth of NAFTA

Foreign Trade The United

States is the #1 trade partner for Latin American countries.

The European Union is the #2 trade partner for Latin American countries.

Informal Sector Untaxed and

unregulated economic activity.

Makes up a large % of the non agrarian employment of many LA people.

Legal – housing Illegal – drug trade

Currency Matching Bolivia

Brazil

Argentina

Ecuador

French Guiana

USA Dollar

Euro

Pesos

Real

Boliviano

Dollarization The process by

which a country in whole or part adopts the US dollar as its official currency.

Common in many LA countries.

Would an American business accept the peso?

Trans-nationalism The phenomenon

whereby many immigrants maintain close contact with their home country.

Many immigrants from LA send US dollars to family living back “home”.

Remittance payments

Social Progress

After today… Students will be able to rank the

economic “health” of the countries that make up Latin America.

Students will understand the economic history of Latin America.

Students will determine the impact of trade agreements on the economy of LA.