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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)
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