Lesson 26: Review for Final Exam

May 4, 2026

Review:

• Sovereign debt
• Investment strategy
• Final Exam on Wed May 6
• Complete a Course Evaluation
• Connect on LinkedIn

Presentation:

• Format:
  • Similar to midterms
  • Short essay questions
  • Map component
• Review Topics:
  • Module 1
  • Theories of Economic Disparity
    • Jared Diamond – Guns, Germs and Steel
    • Niall Ferguson – Six Killer Apps
    • Maritime vs Continental
  • Middle East
    • Oil and Conflict – a brief history
    • Iran vs. Saudi Arabia
  • Europe
    • WWII + post-war order
      • 60M+ casualties
      • Powers left standing: US and USSR
      • Marshall Plan to rebuild Europe
      • Strength of Small/Midsize Family Owned Manufacturing Companies in Germany
    • European Union
      • Sovereign Debt Crisis
      • Syrian/Mideast Refugee Crisis
      • Greece bailout
      • Brexit
      • War in Ukraine
  • Russia
    • Reliance on Oil & Gas
    • Oligarchy
    • Autocracy under Putin
  • War in Ukraine
    • 2014 Annexation of Crimea
    • 2022 Invasion
    • Current stalemate with Russia occupying Eastern and Southern regions
    • US and Europe
    • China
    • Why Putin Still Prefers War
  • Module 2
  • Asian Century
    • TPP
    • US-China Trade War
  • Major Economies
    • India
      • Population growth
      • Economic prospects and challenges
      • Offshoring
      • Infrastructure
    • China
      • 20th Century (1949-)
      • Dramatic Rise (past 30 years)
      • “Commonwealth” economies – Asian Tigers
    • Japan
      • Natural disasters – 2011 Earthquake and Tsunami
      • Lost decades
      • Advanced civilization
  • Module 3
  • Mining in South America
  • Migration from Central America
  • Nicaragua
    • Somoza family dictatorship (U.S.-backed, 1930s–1979)
    • Sandinista revolution (1979) overthrows Somoza
    • U.S.-backed Contras vs. Sandinista government (1980s civil war)
    • Iran–Contra Affair (covert U.S. funding of Contras)
    • Daniel Ortega returns to power (2007–present)
    • Rosario Murillo, wife of Daniel Ortega and Vice President
    • Migration networks established in Costa Rica and the US
  • El Salvador
    • Civil war (1980–1992): government vs. leftist insurgents (FMLN)
    • U.S. supports right-wing government to prevent communism
    • Human rights abuses by military and death squads
    • Assassination of Óscar Romero (1980)
    • Murder of 4 American churchwomen (1980)
    • El Mozote massacre (1981) (~800+ civilians killed)
    • Large-scale refugee migration to the U.S., networks established
  • Guatemala
    • 1954 U.S.-backed coup removes President Jacobo Árbenz
    • Civil war (1960–1996): government vs. insurgents
    • Extreme violence against indigenous populations
    • Genocide in early 1980s (military rule)
    • Rigoberta Menchú raises global awareness
    • Mass displacement and migration, networks established in the U.S.
  • Takeaways
    • Cold War proxy conflicts → weak institutions → long-term instability
    • Violence in the 1980s → migration to the United States
    • Weak institutions and violence increases “push” to leave Central America
    • Migration networks established increases “pull” to the US.
  • Hydropower
    • Amazon Basin
      • Belo Monte (Brazil)
      • Damocracy video
    • What are the tradeoffs?
      • Growing economies need energy
      • Dams destroy ecosystems, local communities, markets
      • Dams (and other major construction projects) are a prime opportunities for corruption
  • NAFTA
    • The North America Free Trade Agreement
      • Signed in 1992 by George H.W. Bush
      • Went into effect in 1994
    • Winners
      • Broad-based economic growth
      • Avocado industry
      • Corporate cost cutting
      • Drug Cartels
    • Who did it hurt?
      • US communities reliant on manufacturing jobs
      • Concentrated in specific regions
    • USMCA = NAFTA 2.0
      • United States Mexico Canada Agreement
        • Signed by Donald Trump in 2018
        • Went into effect in 2020
        • Similar to NAFTA but with key improvements
          • Auto manufacturing
          • Labor standards
          • Reviewed every 6 years – first in July 2026
  • Geography of Cocaine
    • Coca cultivation
    • Cocaine Industry established by Pablo Escobar and the Medellin Cartel in Colombia
    • Demand skyrockets and distribution scales
    • Colombia crackdown and established distribution network rebalances power structure
    • Power and money gradually shift from Colombia to Mexico
  • Module 4
    • Sovereign Debt
    • Corruption Perception Index
    • Investing in the 2020s Global Economy

Assignment:

• Take last year’s exam
• Study for the final exam