MIDDLE AMERICA II(CHAPTER 4: 196-221)

NaturalResources

MAQUILADORASTijuana

NogalesCiudadJuarez

Matamoros

Reynosa

Monterrey

Chihuahua

GDP PER CAPITA ALONG THE US-MEXICAN BORDER

• 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

MAQUILADORAS

• 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

MAQUILADORAS

• Maquiladora products

MAQUILADORAS

• Electronic equipment• Electric appliances• Auto parts• Clothing• Furniture

• 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

MAQUILADORAS

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

NAFTA

How has Mexico benefited from NAFTA?

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?

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.

ALTITUDINAL ZONATIONMiddle & South America’s Vertical Climate Zones

ALTITUDINAL ZONATION

SeaLevel

SeaLevel

2500’ 750 m

TIERRA CALIENTE(Hot Land)

Bananas, Cocoa, Sugar, Rice

Middle & South America’s Vertical Climate Zones

6,000’ 1800 m

ALTITUDINAL ZONATION

SeaLevel

2000’ 600 m

SeaLevel

TIERRA TEMPLADA (Temperate Land)

Coffee, Rice, Corn, Sugar

ALTITUDINAL ZONATION

SeaLevel

6,000’

2000’

2,000 m

600 m

SeaLevel

12,000’ 3,600 m

TIERRA FRIA(Cold Land)

Corn, Wheat, Potato

12,000’ 3,600 m

ALTITUDINAL ZONATION

SeaLevel

6,000’

2000’

2,000 m

600 m

SeaLevel

TIERRA HELADA(Frost Land)

Middle & South America’s Vertical Climate Zones

CENTRAL AMERICA

THE REPUBLICS

• Guatemala• Belize• Honduras• El Salvador• Nicaragua• Costa Rica• Panama

ENVIRONMENTAL CONCERNS

• Tropical Deforestation

• 3 million acres of woodland in Central America disappear each year!

What are the causes of tropical deforestation?

What are the alternatives?

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?

THECARIBBEAN

BASIN

THE CARIBBEAN BASIN

• The Greater Antilles– Cuba– Hispaniola– Jamaica– Puerto Rico

• The Lesser Antilles

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

MIDDLE AMERICA II(CHAPTER 4: 216-235)