Presentation Transcript

1. Global Issues Activity

   Stockholm Group Tonya Webber Joshua Swing Hannah Hollis Emily Hyde Alia Tompkins Daniel Amadi Nicole Sakuda
2. Our Inquiry Question What short term and long term impact does the earthquake of 2010 have on international trade practices of Chili?
3. Research Questions??? What exactly is sustainable trade? What are some products that come out of Chile? How has the 2010 earthquake negativity affected the production of these products? How has the 2010 earthquake positively affected the production of these products if at all? What other counties benefit from the products that Chile produces and how does the earthquake affect these countries?
4. Natural resources of Chile
5. Chile is one of the world’s most beautiful country and has a very diverse landscape. Chile’s resources bear a very high substantial value to most of the other countries in the world and are also very diverse. They range from common minerals to sources of natural energy and electrical power. Most of Chile’s natural resources are from the mines, like coal, copper, iron ore, nitrates, precious metals, molybdenum or from the forests (timbers) and hydropower.With many different climate zones (very favorable to say the least), the biodiversity and mineral resources available in Chile truly become without a doubt some of the most diverse available. As a matter of fact many of the worlds endangered animals and rare commodities are available in Chile alone
6. Minerals Chile is a mineral-rich country that boasts a large amount of available minerals. The most common minerals located within the country are copper, iron ore and molybdenum. Molybdenum is an element commonly used to make high strength steel alloys. According to the U.S. Geological Survey, Chile also contains other mineral resources such as crude iodine, diatomite, feldspar, ferromanganese and silicomanganese, gold, gypsum, rhenium, selenium, silver and zinc.
7. Timber Chile also has a thriving timber industry made of southern beeches, manio and broad leaf evergreen trees. Chile is also where most of the temperate rain forests left in the world are located. These rain forest areas allow for some of the most diverse wildlife which has recently been threatened by the rarely regulated timber industry in Chile.
8. Oil Chile started producing oil around 1980 with about 30 thousand barrels of crude oil produced per day. According to the U.S Energy information Administration, that number has dropped dramatically due to a decrease in available resources to only three thousand barrels of oil per day as of 2006.
9. Hydroelectric Power Chile is also a large producer of hydroelectric power using its vast water systems to harness natural power according to the United States Energy Information Administration. Chile has gone from producing seven billion KWH in 1980 to well over 28 billion KWH in 2006

10. How do we keep sustainable system of trade among nations when natural disasters are unpredictable?

11. A country must prepare for the unexpected. It must be able to rebuild it’s…NATIONAL ROADS
12. It must be able to rebuild it’s…Bridges
13. It must be able to rebuild…. Ports. Valparaiso, a port in Chile, was hit by the recent earthquake.
14. An individual must prepare for the unexpected. He or she must be able to rebuild their…Small Business
15. He or she must be able to rebuild their…their home
16. He or she must be able to rebuild their…community
17. The affects on the Copper Industry 2010 Chile Earthquake
18. 2010 Earthquake The powerful earthquake that shook Chile on Saturday probably shifted the earth’s axis and made days slightly shorter, according to a NASA scientist. Richard Gross, a research scientist at NASA’s Jet Propulsion Laboratory, calculated that the planet’s axis would have shifted by eight centimeters during the 8.8 magnitude quake. Earth days are 24 hours long because that’s the amount of time it takes the planet to make one full rotation on its axis, so shifting the axis would affect rotation. If the planet’s axis did shift by eight centimeters, days would have shortened by 1.26 microseconds, Gross calculated.A microsecond is one-millionth of a second, so no need to adjust watches just yet.
19. There have been earthquakes in the past that have been stronger than 8.8, but I thought that this was interesting. Also, I found it interesting that the Haiti earthquake (7.0 magnitude) was weaker than the Chilean earthquake, but had a higher death toll and has more awareness worldwide. I think that this is because the buildings in Haiti didn't have a secure foundation, whereas Chile had more of a firm foundation.
20. Copper industry
21. Where does Chile’s copper come from? The copper mines in Chile are located mainly in the northern regions of the country. One such region is the Atacama desert pictured here.
22. How is copper produced? The production of copper is long and dangerous. Workers in the copper mines may heat copper as many as fifteen times before the metal is ready for export.
23. Who does Chile trade with? Chile’s main trading partners are the United States, Japan, Germany and Brazil.
24. How important is copper? Copper accounts for 42% of Chile’s exports. Around $7.5 billion dollars is made annually from copper exports
25. Copper and the Earthquake Chile is the world's biggest copper miner, and although officials have promised to honor its export commitments, supply worries remain. Production at four major mines was suspended - affecting around 20% of the country's capacity
26. Chile accounts for 30% of the world's reserves.  Its share of global production is even higher, at 35%.  17% of the countries' exports go to China. The US, France, and South Korea account for another 30%. Copper accounts for 40% of the nation's exports.
27. What happened to the copper right after the earthquake? About one-fifth of the country's production has already been suspended. The mines closest to the epicenter of the quake are Anglo-American's Los Bronces and El Soldado. They produce 280,000 tons per year. The main state-owned firm Codelco is only expected to be closed for two days.

28. So what are the findings on the Copper Industry as a result from the Earthquake?

29. The Chilean National Corporation of Copper (Codelco) said on Thursday that the massive earthquake that shook the central-south zone has had little impact on the country's copper production. "In general, the earthquake will affect no more than 0.5 percent of the production," the state-run Codelco said in a statement. The quake has helped push up the price of copper, even after the National Mining Society, which represents producers, said most mines in the nation are running normally. Companies should be able to make up for lost production and won’t miss output targets this year
30. What is the countries and individuals responsibility as it relates to our global issue? Two key questions
31. Country What is the countries responsibility to help Chile get back on their feet after a natural disaster hits? A country has responsibility on a much broader scale. It's first priority should be it's people. The country should also be prepared. It can distribute survival kits to those that live in high risk areas prone to earthquakes or other natural disasters. They also must repair their economic crisis. Chile also must repair the decline of the exports that drive the country's growth. Chile's main product is copper. Most of the copper mines are in the north, and most were not damaged. But a few main copper mines were closed for safety hazard. Making the price of copper spike. The country's responsibility is to look at all the poorly built structures that were damaged and figure out how to improve buildings. They would need to get funds for the materials to build stronger structures. The country would also need to figure out a disaster plan that they clearly state to the citizens of Chile so people know exactly what to do if it were to happen again.
32. Individual What is the individual’s responsibility when a natural disaster hits to help the economy get back on their feet? People should educate themselves on what kind of natural disasters occur in their area, possible effects, and what to do to be prepared. Once people learn about these things they can make preparedness kits with canned food, water, clothing, medicine, flashlights, batteries, etc. Also i think each individual's responsibility is to keep humanity so they care for each other and help others who are in need to rebuild their communities. Chileans should be prepared. They never know if there will be another strong earth quake around the corner. They should have emergency procedures ready, know where they will go, and have survival kits. We must be prepared for any unexpected disaster. No matter which geographical we live in, there are potentials for natural disasters.
33. Annotated references
34. Annotated References http://in.reuters.com/article/domesticNews/idINSGE62000O20100301A little hard to follow but.. This article discusses that even though the earthquake did not totally destroy Chile's copper mines, it has affected the price of copper. The price has been rising due to the quake and hit it's highest peak on March 1st. http://businessjournalism.org/2010/02/28/chile%E2%80%99s-earthquake...This source discusses that Chile's recent earthquake may cause economic ripples within the country. Chile is the world's chief exporter of copper and also a major agricultural supplier of things like wine, grapes, and pears. The recent earthquake has disrupted both the copper and agricultural industries.
35. Annotated References http://www.usatoday.com/money/world/2010-03-02-chile-recovery_N.htmThis source states that the Chile economy is still stable even after such harsh conditions. They are a very stable country, with a clean government, and had been saving some money. Therefore, they will have enough to nurse their country back to health. http://news.bbc.co.uk/2/hi/8541640.stmIn this article, it tells of how the earthquake affected the copper trade. Chile is the world's biggest copper miner, but because of the quake, 4 major mines were suspended. This suspension affects about 20% of copper production. Chile's mining minister said it could take two days for mining to resume.
36. Annotated References http://marketplace.publicradio.org/display/web/2010/03/01/am-chile-...This link takes you to the text of an interview of Nancy Marshall Genzer who reports that the Chile economy has taken a major blow. Copper prices are bouncing off the charts as three of the copper mines that produce more than a fifth of the copper in Chile have been closed, and roads leading to mines have been damaged and destroyed. This shows that the Chilean earthquake will not be forgotten quickly by its victims. http://in.biz.yahoo.com/100304/137/bav6mv.htmlThis link shows that the 2010 GDP of Chile will continue to rise, despite the earthquake. There is a good chance that the Chilean economy will recover through the second half of the year.
37. Annotated References http://www.fastinternational.org/ This source called FAST or Finance Alliance for Sustainable Trade. They operate worldwide and are non-profit. It's an association dedicated to sustainable trade and trading of sustainable products. They represent lenders that are willing to finance sustainable enterprises. Its good to know that their are associations promoting sustainable trade internationally. http://www.sustainablehaiti.org/Default.aspx The Haitian Sustainable Development Foundation. It is a foundation aiming to create communities that are not dependent on foreign aid. They want to create communities with the skills and confidence to sustain themselves. After the earthquake that struck Haiti, it now has to rebuild itself economically.
38. Annotated References http://www.ft.com/cms/s/0/3371bb40-2522-11df-a189-00144feab49a.htmlThis page talks about how the earthquake has affected the Chile Industry. The prices of copper have skyrocketed in the past month since the country has been hit with a huge natural disaster. It was amazing to read that the mines were mostly untouched even though they were hit with a massive earthquake. http://www.youtube.com/watch?v=T7jaayXlm-M Here is a video referring to the Chile earthquake. It shows the unpredictability of a natural disaster. Key things I take from the video: It was more powerful than the earthquake than Haiti. It destroyed roadways, bridges, parking decks, and homes. When linking this to the economy you have to consider the cost of all the damage. Businesses where also damaged, and that affects trade.
39. Annotated References http://www.businessweek.com/news/2010-03-02/codelco-returns-to-full-copper-production-in-chile-after-quake.html This article talked about how the earthquake had little affect on the copper industry. http://www.businessinsider.com/chile-earthquake-effect-on-copper-2010-2 this article gives states about the copper industry in Chile. It also talks about what has happened since the earthquake.