World Regional GeographyWorld Regional Geography

March 15, 2010March 15, 2010

Reading: Marston Chapter 7 pages 322-370 (includes South

America)

Goode’s World Atlaspages 129-144 (includes

South America)

This Week: Map Quiz #3

North America

Arenal Volcano, Costa Rica

Central America & The CaribbeanCentral America & The Caribbean

1. Political Boundaries2. Key Concepts

A. Free Trade B. Neoliberalism

3. Video: Life & Debt4. Physical Geography

A. Physical Features & Topography B. Climate CharacteristicsC. Vegetation & Land UseD. Physiographic RegionsE. Environmental Issues

5. Human GeographyA. Population CharacteristicsB. CultureC. Economies

Central America & The CaribbeanCentral America & The Caribbean

Free TradeFree Trade

Free trade is a system of trade policy that allows traders to act and transact without interference from government.

• Comparative advantage

• Supply and demand determine price and resource allocation.

• No protectionist policies.• Agricultural

• Free-trade areas• NAFTA• CAFTA

Neoliberalism, in theory, is essentially about making trade between nations easier. It is about freer movement of goods, resources and enterprises in a bid to always find cheaper resources, to maximize profits and efficiency.

NeoliberalismNeoliberalism

To help accomplish this, neoliberalism requires the removal of various controls deemed as barriers to free trade, such as:

• Tariffs• Regulations• Certain standards, laws, legislation and

regulatory measures• Restrictions on capital flows and investment

NeoliberalismNeoliberalism

The goal is to be able to allow the free market to naturally balance itself through the pressures of market demands.

• The rule of the market.• “Trickle Down” notion of wealth distribution. • Deunionizing of labor.• Removal of any impediments to capital mobility. • Freedom from the state, or government.

• Reducing public expenditure for social services, such as health and education, by the government.

• Deregulation, to allow market forces to act as a self-regulating mechanism.

• Privatization of public enterprise (i.e. water, internet).

• Changing perceptions of public and community good to individualism and individual responsibility.

Neoliberalism: Why?Neoliberalism: Why?

• Sustained economic growth is the way to human progress.

• Free markets without government “interference” would be the most efficient and socially optimal allocation of resources.

• Economic globalization would be beneficial to everyone.

• Privatization removes inefficiencies of public sector.

• Governments should mainly function to provide the infrastructure to advance the rule of law with respect to property rights and contracts.

At the international level then we see that this translates to:

• Freedom of trade in goods and services.• Freer circulation of capital.• Freer ability to invest.