Chapter intro 2
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Section 1: The Economy.

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Chapter Intro 2

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Chapter intro 2

Section 1:The Economy

Patterns of economic interdependence vary among the world’s countries.The economies of most Latin American countries still depend on agriculture, but many of the region’s countries are trying to develop their economies by promoting trade within the region and with the rest of the world.

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Chapter intro 3

Section 2:People and Their Environment

Changes occur in the use, distribution, and importance of natural resources. Rapidly increasing human populations and consumer demand for natural resources place tremendous stress on these resources and pose serious challenges for the preservation of rain forests in Latin America.

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Section 1 gtr

The Economy

Latin America has promoted economic development through trade within the region and with the rest of the world.

Section 1-GTR


Section 1

Economic Activities

Latin America’s economic development has been affected by many factors, including physical geography.

  • Latin America struggles with:

    • Unevenly distributed farmland between a small group of wealthy landowners and a much larger group of campesinos

Share in Total Latin American Exports, 2005

Section 1


Section 11

Economic Activities (cont.)

  • Economic inequality

  • Dependence upon export products, such as bananas, sugarcane, and coffee

  • Industrial growth, which is limited by physical features such as the Andes

Economic Activity in Latin America

Section 1


Section 12

Economic Activities (cont.)

  • Positive factors in Latin America:

  • Suitable region for growing cash crops

  • Many developing countries

  • Service industries are diversifying.

Section 1


Section 13

Transportation and Communications

Latin American countries are working to improve transportation and communications systems necessary for economic development.

  • Latin America’s physical geography affects transportation and communications.

  • Transportation—roads and railroads must often cross many physical barriers.

Section 1


Section 14

Transportation and Communications(cont.)

  • The Pan-American highway is a good road system, however.

  • Some countries have well-developed rail systems.

  • Inland waterways are very important.

  • Air travel will help as it becomes more affordable.

Transportation Networks

Section 1


Section 15

Transportation and Communications(cont.)

  • Communications—Latin America’s communications networks include newspapers, radio, and television, but are often censored by governments during political unrest.

  • Internet use is expected to grow rapidly.

Section 1


Section 16

Trade and Interdependence

Many Latin American countries developed their economies by promoting trade and decreasing foreign debts.

  • NAFTA (North American Free Trade Agreement)—trade among Mexico, the U.S., and Canada increased 10–15% annually after the agreement was implemented, but the agreement has been controversial in general.

Section 1


Section 17

Trade and Interdependence (cont.)

  • CAFTA (Central American Free Trade Agreement)—the U.S. and six Central American countries signed this agreement into law in 2005, hoping to lower trade barriers.

  • Many Latin American countries are still repaying the debt to foreign banks from funds borrowed in the ‘60s and ‘70s, which is hindering needed domestic programs.

Mexican Exports to the United States

Section 1


Section 2 gtr

People and Their Environment

This section discusses the importance of natural resources in Latin America and the challenges the region faces in preserving these resources as human populations, urbanization, and industrialization continue to increase.

Section 2-GTR


Section 2

Managing Resources

Latin America is working to protect the environment while facing rapid urbanization and growing human needs.

  • The rain forests in Latin America are disappearing as a result of deforestation.

Section 2


Section 21

Managing Resources (cont.)

  • The land is being used for:

  • Farming

  • Ranching

  • Timber and other products

Section 2


Section 22

Managing Resources (cont.)

  • The destruction of rainforests leads to the loss of:

  • Biologically rich ecosystems/biodiversity.

  • Key medicines and treatments for cancer and other diseases.

  • Carbon dioxide in the atmosphere.

Section 2


Section 23

Managing Resources (cont.)

  • Helpful actions:

  • New methods of farming, mining, and logging

  • Conservation

  • Responsible tourism

  • Reforestation

Section 2


Section 24

Human Impact

Rapid urbanization and industrial growth have placed tremendous stress on available natural resources in Latin America.

  • Problems due to rapid urbanization:

    • Insufficient jobs or housing for many people

    • Natural disasters can wipe out entire communities.

Section 2


Section 25

Human Impact (cont.)

  • Unsanitary areas and the spread of disease

  • Air pollution

Section 2


Section 26

Human Impact (cont.)

  • Problems due to industrial growth:

  • Air and water pollution

Urban Growth in Latin America

Section 2


Section 27

Future Challenges

Latin America faces many international challenges, including conflicts over natural resources and preparing for natural disasters.

  • During the past 150 years, Latin America has faced a number of territorial conflicts over strategic locations or rights to valuable natural resources.

Section 2


Section 28

Future Challenges (cont.)

  • Latin American governments are cooperating in order to forecast:

  • Hurricanes

  • Volcanic eruptions

Border Conflicts and Natural Resources

Section 2


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  • An Open Economy

  • Latin America has gradually opened up its economy to outside investment from businesses and countries around the world.

  • Through the NAFTA and CAFTA trade agreements, barriers to trade have been reduced in Mexico and Central America.

  • Although opening the market has brought in many jobs, critics say many of those jobs are dangerous.

  • Many Latin American countries have also accepted loans that they are unable to repay, causing their economies to stagnate.

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Population Pressures

VS 2


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