Lecture 4 - What is the Problem with Export Economies

Lecture 4 - What is the Problem with Export Economies -...

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History 262 Modern Latin America February 1, 2007 Lecture 4 – What is the Problem with Export Economies? Facets of an export economy in Latin America o Monoculture – one-crop economy Most Latin America countries have economies focused on a single crop Sugar in Cuba Coffee in Brazil Bananas in Ecuador o Enclave – when there is a part of the economy that generates revenue that has no connection to the rest of the economy Example – oil in Venezuela o Linkage – when one industry supports other industries Example – the automobile industry stimulates the steel, plastic, rubber, etc. industries This is an example of a backwards linkage Example – the automobile industry stimulates the oil, construction, gas station, motel, etc. industries This is an example of a forwards linkage The largest linkage (backwards and forwards) is employment Outsourcing 19 th century – great population increase in Europe and USA, and the new generation
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Lecture 4 - What is the Problem with Export Economies -...

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