Final answer:
The allure of the Latin American market lies in its considerable size and growth potential, despite historical challenges with inflation, foreign debt, and protectionism. Commodities like oil and agriculture were economic stabilizers, while lack of trade unification posed barriers.
Step-by-step explanation:
The allure of the Latin American market has primarily been due to its considerable size and potential for rapid economic growth. While historical struggles with inflation, foreign debts, and protectionism were challenges, the region showed resilience in the early 1930s by moving off the gold standard without experiencing the banking collapses seen in the U.S. The natural resources, such as agriculture and petroleum, particularly in countries like Venezuela, remained vital for economic stability and growth, even as manufacturing and industry struggled with competition from imports post-independence.
External global trade arrangements have often favored certain countries over others, contributing to the economic atmosphere in Latin America. The lack of a unified trade agreement like the European Union or NAFTA has historically presented barriers for broader economic development within the region. Despite this, certain Latin American countries began to reengage with the global economy in the 1970s, benefitting from increased credit availability and oil price rises.