Question

Why was an increase in domestic manufacturing a good response to global economic depression for Latin America?

Exports of raw goods became a focus of industrialized nations, leaving Latin America behind.

A reduction in tariffs made exporting manufactured goods an economic solution for Latin America.

Manufacturing domestically was a substitute for overpriced imports from industrialized nations.

Imported goods were devalued by the economic downturn, making it a better choice for Latin America.

Answer 1

Hello there,

Why was an increase in domestic manufacturing a good response to global economic depression for Latin America?

Answer: Manufacturing domestically was a substitute for overpriced imports from industrialized nations.

Answer 2

The correct answer is C) manufacturing domestically was a substitute for overpriced imports from industrialized nations.

An increase in domestic manufacturing was a good response to global economic depression for Latin America because manufacturing domestically was a substitute for overpriced imports from industrialized nations.

Most of the official currencies of the countries in Latin America are devalued compared to the U.S. dollar and other international trade currencies such as the British Pound. For Latin American countries, imports from industrialized countries result expensive for them. So the alternative was to manufacture products domestically in order to have better production costs with local materials and offer the goods in a much affordable price.