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Trade Patterns of Latin America and Eastern Europe from 1750-present


Trade Patterns of Latin America and Eastern Europe from 1750-present Tyler DeClerck Dino Salkic Latin America The backbone of Latin America basic economy in the 1700 ... – PowerPoint PPT presentation

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Title: Trade Patterns of Latin America and Eastern Europe from 1750-present

Trade Patterns of Latin America and Eastern
Europe from 1750-present
  • Tyler DeClerck
  • Dino Salkic

Latin America
  • The backbone of Latin America basic economy in
    the 1700's was its part in the Atlantic Slave
    Trade and Triangular Trade, African slaves
  • Between 1700 and 1800 was the highest import of
    African slaves. The Triangular/Atlantic slave
    trade was where African slaves were exported to
    Latin America, where the raw materials and crops
    produced would be exported, through Spain, to the
    world, and finished luxury products would be
    exported from Europe to Latin America. Seven
    million African slaves arrived in Latin America.
    Brought by the Europeans in exchange for crops,
    these innocent and severely abused people were
    forced to work in agriculture for the most part.
    This cycle would last all the way into the mid
  • Latin Americas trade and economy grew very
    slowly. Early discoveries of gold and silver
    production created the first basis of its
    economy. Mining of raw materials, metals, and
    especially silver would remain a huge source of
    Latin Americas trade and exports. The mines were
    usually started by private investors and
    companies, but backed by governments, primarily
    Spain. Mexico and Peru were the sites of huge
    silver mines which would continue to flow for
    years and years to come. The influx and import of
    so much silver would lead to higher prices and
    inflation in first Spain and later all of Europe.
    Silver mining/exports would make up more than 2/3
    of Latin Americas economy, trade, and income.
  • Sugar and cacao were two of the biggest major
    crops exported, but sugar was the ultimate
    largest. Sugar plantations would be and were set
    up from the very beginning of foreign investing,
    exploration, and discovery in Latin America.
    Sugar would also continue to be the major trade
    crop and economic booster and boom for Latin
    American nations and would continue to be a huge
    part, even into present day.
  • They came completely dependent on others trading
    them resources because they could not
    industrialize. But with an extreme demand for
    Latin American products around the world, they
    were able to survive.
  • The U.S. though set up the Monroe Doctrine
    stating that no other countries could intrude in
    Latin American affairs or try any colonization.
    The U.S. was trying to cut off Latin America from
    the rest of the world and leaving Latin Americas
    resources, goods, and markets to them. Foreigners
    wanted the resources, though, and began
    investments, which helped Latin America
    immensely. Latin American economies were
    expanding due to exports. Each country seemed to
    have specialties. For example, bananas and coffee
    from Central America, tobacco and sugar from
    Cuba, and rubber and coffee from Brazil.
  • Because of the rapidly expanding economy and
    trade, there was a large interest from foreign
    investors from the major powers, the British,
    French, German, and U.S. These investors helped
    the Latin American economy, but were lessening
    their independence. Much of Latin America began
    to industrialize. Foreign investments were
    encouraged and policies were changed to help
    promote investments as well.

Eastern Europe
  • Although the Russian Empire would play a leading
    political role in 1800s, secured by its defeat of
    Napoleonic France, its retention of serfdom
    precluded economic progress of any significant
    degree. As West European economic growth
    accelerated during the Industrial Revolution,
    which had begun in the second half of the 18th
    century, Russia began to lag ever farther behind,
    creating new problems for the empire as a great
    power. Russia's great power status obscured the
    inefficiency of its government, the isolation of
    its people, and its economic backwardness.
  • When Alexander II, came to the throne in 1855,
    desire for reform was widespread. The
    emancipations of serfdom in 1861 was the single
    most important event in 19th century Russian
    history. It was the beginning of the end for the
    landed aristocracy's monopoly of power.
    Emancipation brought a supply of free labor to
    the cities, industry was stimulated, and the
    middle class grew in number and influence
  • During the Cold War, the term Eastern Bloc (or
    Soviet Bloc) was used to refer to the Soviet
    Union and countries it either controlled or that
    were its allies in Central and Eastern Europe
    (Bulgaria, Czechoslovakia, East Germany, Hungary,
    Poland, Romania.) A communist or social
    government controls the economics and trade with
    a tight leash. The Easter Europeans were allowed
    to trade, and they did mostly with there
    geographical neighbors of West Asia or the Middle
    East. The catch was that all trade was severely
    regulated by the government, which meant
    restrictions and limitations. This regulation
    caused the Eastern Bloc to be cut off the from
    the world in a fashion similar to an
    imperialistic government. The economy was
    weakened and technology was severely lagging.
    During a period of globalization, because
    communication, military, politics, travel and
    even economics were able to travel the globe, a
    communist economy could not be healthy.
  • This economic stall remained until the late
    1970's. The world market has been dominated by
    Capitalistic governments since the end of World
    War II. This style proved to be more efficient
    and even more popular than the socialist/communist
    government controlled economy. This became
    increasingly more obvious to the Eastern Bloc,
    especially the smaller independent countries in
    Easter Europe (controlled by the USSR.) In early
    1990, the Soviet's gave up control of 15
    republics in Eastern Europe. Later that year on
    December 8th, the powers of Russia and Ukraine
    deemed the Soviet Union dissolved. By the last
    day of the year, December 31st, 1991 all the
    republics of the Union had seceded and the Soviet
    Union was gone.
  • From 1917-1991 the majority of Eastern Europe's
    economy was in tatters. Struck down and
    restricted by the communism, most republics had a
    complete rebuilding process to go through, and
    were far behind those of the long-time democratic
    Western Europeans. Those republics that chose to
    have free-markets were receiving extensive aid
    from the United States and were struggling, yet
    on their way to economic improvement. Countries
    such as Ukraine and Russia that were struggling
    immensely to adapt to this new and foreign way of
    economics were getting aid from the EU as well.
    More recently 12 of the 15 former communist
    states created a trade bloc headed by the CIS
    (formation after USSR.) This trade bloc allows
    free-market trade among themselves and does
    support democratization.
  • Today the main source of economical revenue seems
    to be gas, chemicals and natural minerals and
    resources, especially in Russia, Ukraine, Poland
    mostly the larger countries of the region. Russia
    is filled with organic minerals that can be
    exported worldwide, because many many places do
    not have these necessities.

Comparing and Contrasting
  • Latin America and Eastern Europe both went
    through extended periods of economic depression,
    as well as a failure to keep up with the current
    technology and industrialize.
  • Both regions were controlled or severely
    oppressed for an extended amount of time (US,
    western Europe, USSR)
  • Both regions are growing and catching up with
    present day technology and economy
  • Both regions have always and still do today rely
    on natural resources to support and carry their
    economic success and connection to the world
    through trading and trade networks (gas and
    minerals) (organic fruits and agriculture, silver
    and gold)
  • Latin America has always had a common export in
  • Eastern Europe has never had an export that they
    have been able to consistently trade for an
    extended period of time
  • Eastern Europes economy was regulated by a
    communist bloc which interrupted and restricted
    trade flow to outside networks
  • Latin America was always a free-flowing market
    until the Monroe Doctrine, but even still some
    countries did not follow these standards because
    the US couldnt back it up
  • The regions have extremely different
    environments. Latin America being mainly
    tropical, warm and wet (ideal for agriculture)
    and Eastern Europe being moderate to frigid
    depending on the location (very little
  • The cultures and lifestyles of these two regions
    are very different and Eastern Europe had little
    to no effect on Latin America like Western Europe

Trends and Changes in Trade
  • Latin America-
  • Began in 1700s as slave trade being main source
    of profit, exported natural goods in exchange for
    a total of seven million African Slaves
  • Agriculture was a constant and has always been a
    mainstay of exports
  • 1800s gold and silver produced in dangerous and
    deadly mines exported to Europe and eventually to
    Asia (through Europe)
  • US became more involved in mid 1800s and tried to
    regulate all Latin American trade (all Europe
    prior to this)
  • As globalization came Latin Americas resources
    became necessity and with greater profits they
    were able to begin Industrialization well after
    Europe and the US
  • Imports were always needed to survive because
    they lacked the industry to manufacture, but with
    new industries they could import new goods for
    luxury instead of always importing the same life
  • Recently trade had shifted from the government to
    private companies, which are using cheap labor to
    increase income
  • Eastern Europe
  • -Eastern Europe has always been economically
    hindered and trade networks have been with close
    neighbors or within itself
  • -Eastern Europe fell behind in the 1700 and
    1800s because of its refusal to eliminate
    serfdom, the serfdom ruined the economy and there
    was little to export
  • -1917-1991 Eastern Europe was dominated by the
    Soviet Bloc and trade was strictly restricted and
    regulated by the Soviet Union
  • -Trade was allowed within itself, but was
    mainly used for life necessities and nothing
    else, trade was not an economical factor
  • -After communism was eliminated, Eastern Europe
    began the road to economic recovery with help
    from the EU and US, they began trading with their
    major export being natural resources such as gas
    and minerals
  • -Gas and minerals continue today to be the
    regions largest import because most places do not
    have these natural sources, they can use things
    they find naturally to participate and learn the
    ways of the international trade network
  • -With globalization fully in tact and still
    rising, Eastern Europe can trade their resources
    around the world in exchange for many foreign and
    new items they could not import for hundreds of
    years due to government restrictions
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