Notes
Slide Show
Outline
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MIDDLE AMERICA II
(CHAPTER 4:  196-221)
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MAQUILADORAS
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"Initiated in the 1960s as..."
  • 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
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"Modern industrial plants"
  • 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
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"Maquiladora products"
  • Maquiladora products
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"ADVANTAGES"
  • 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
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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
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NAFTA
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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?
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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.
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ALTITUDINAL ZONATION
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ALTITUDINAL ZONATION
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ALTITUDINAL ZONATION
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ALTITUDINAL ZONATION
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ALTITUDINAL ZONATION
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THE REPUBLICS
  • Guatemala
  • Belize
  • Honduras
  • El Salvador
  • Nicaragua
  • Costa Rica
  • Panama
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ENVIRONMENTAL CONCERNS
  • Tropical Deforestation
  • 3 million acres of woodland in Central America disappear each year!
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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?
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THE CARIBBEAN BASIN
  • The Greater Antilles
    • Cuba
    • Hispaniola
    • Jamaica
    • Puerto Rico
  • The Lesser Antilles
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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
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MIDDLE AMERICA II
(CHAPTER 4:  216-235)