CENTRAL AMERICA

Central America

• Land bridge that connects North America to South America.

• Countries: BELIZE, GUATEMALA, HONDURAS, EL SALVADOR, NICARAGUA, COSTA RICA and PANAMA.

IN WHICH ECONOMIC SYSTEM DO INDIVIDUALS MAKE THE MAJORITY OF THE DECISIONS?

F. TRADITIONAL

G. FREE ENTERPRISE

H.COMMAND

J. MERCANTILIST

Geography

• Chain of volcanic mountains

• Volcanic Soil- fertile soil used for farming

• Tropical Climate

• Mountains are cool year round

• Hurricanes during the summer and fall

Economy

• Farming and harvesting wood from the rain forest

• Plantations: owned by wealthy people and companies.

• Major Crops: coffee, bananas, cotton, and sugarcane

• All major crops are exports sent to the U.S.

• Poor residence rely on subsistence farming to survive

FREE ENTERPRISE SYSTEM IS CHARACTERIZED BY ALL OF THE FOLLOWING EXCEPT -

F. LITTLE GOVERNMENT CONTROL.

G. PRIVATELY OWNED BUSINESSES.

H. GOVERNMENT RECEIVES ALL THE PROFIT.

J. COMPETITION DETERMINES THE PRICE.

Rain Forest Economy

• Companies cut down and export lumber

• Land is burned to make room for farming

• Over time, erosion strips soil of nutrients

• Companies leave land and clear new land in a new spot

Panama Canal

• Passage way to shorten time between the Atlantic to Pacific oceans.

• Built by the U.S. in 1913

• Panama was given control on Dec. 31, 1999.

• 2.9 million people live and work in the canal area.

History and People

• Olmecs were first to settle in Central America 1200-400 B.C.

• Maya lived in the rain forests 250-900 A.D.

• Spanish Conquistadors arrived in the 1500’s

• Natives learned the Spanish language and became Roman Catholic

• Most countries gained their independence in 1821

• Panama independence in 1903

• Belize independence from England in 1981

Government

• Each country is a democratic government

• Leaders and representatives are elected by the people

• Belize: parliamentary democracy-prime minister heads the government