trade patterns of latin america and eastern europe

8/8/2019 Trade Patterns of Latin America and Eastern Europe

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Trade Patterns of Latin America

and Eastern Europe from1750-present

Tyler DeClerck

Dino Salkic


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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 wereexported 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 1800s.

Latin Americas trade and economy grew very slowly. Early discoveries of gold and silver production created the first basis of itseconomy. 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 thesites 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 Americaseconomy, 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 majortrade 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 economieswere 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.


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Eastern Europe

Although the Russian Empire would play a leading political role in 1800s, secured by its defeat of Napoleonic France, its retention ofserfdom precluded economic progress of any significant degree. As West European economic growth accelerated during the IndustrialRevolution, which had begun in the second half of the 18th century, Russia began to lag ever farther behind, creating new problems forthe empire as a great power. Russia's great power status obscured the inefficiency of its government, the isolation of its people, and itseconomic backwardness.

When Alexander II, came to the throne in 1855, desire for reform was widespread. The emancipations of serfdom in 1861 was the singlemost 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 thatwere its allies in Central and Eastern Europe (Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, Romania.) A communist orsocial government controls the economics and trade with a tight leash. The Easter Europeans were allowed to trade, and they did mostlywith there geographical neighbors of West Asia or the Middle East. The catch was that all trade was severely regulated by thegovernment, which meant restrictions and limitations. This regulation caused the Eastern Bloc to be cut off the f rom the world in a fashionsimilar to an imperialistic government. The economy was weakened and technology was severely lagging. During a period ofglobalization, because communication, military, politics, travel and even economics were able to travel the globe, a communist economycould not be healthy.

This economic stall remained until the late 1970's. The world market has been dominated by Capitalistic governments since the end ofWorld 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 bythe USSR.) In early 1990, the Soviet's gave up control of 15 republics in Eastern Europe. Later that year on December 8th, the powers ofRussia and Ukraine deemed the Soviet Union dissolved. By the last day of the year, December 31st, 1991 all the republics of the Unionhad 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 republicshad a complete rebuilding process to go through, and were far behind those of the long-time democratic Western Europeans. Thoserepublics that chose to have free-markets were receiving extensive aid f rom the United States and were struggling, yet on their way toeconomic improvement. Countries such as Ukraine and Russia that were struggling immensely to adapt to this new and foreign way ofeconomics were getting aid from the EU as well. More recently 12 of the 15 former communist states created a trade bloc headed by theCIS (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 fi lled with organic minerals that can be exported worldwide, becausemany many places do not have these necessities.


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Comparing and Contrasting

Latin America and Eastern Europe both went through extended periods of economic depression, aswell 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, westernEurope, 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 agriculture 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 restrictedtrade flow to outside networks

Latin America was always a free-flowing market until the Monroe Doctrine, but even still somecountries did not follow these standards because the US couldnt back it up

The regions have extremely different environments. Latin America being mainly tropical, warm andwet (ideal for agriculture) and Eastern Europe being moderate to frigid depending on the location(very little agriculture.)

The cultures and lifestyles of these two regions are very different and Eastern Europe had little tono effect on Latin America like Western Europe did


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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 necessities

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 begantrading 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 manyforeign and new items they could not import for hundreds of years due to government restrictions

trade patterns of latin america and eastern europe

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