Question

How did the US economy and policy affect Latin America?

A) Economic policies led to increased trade and prosperity in Latin America.
B) Economic policies caused a decline in trade and economic growth in Latin America.
C) The US government imposed restrictions on Latin American trade.
D) Latin America experienced no economic impact from the US.

Answer 1

The U.S. economy and policies have had a complex impact on Latin America, fostering trade in some sectors while exacerbating economic challenges and class divides. U.S. interventions have often supported American economic interests with mixed outcomes for Latin America. Independence and removal of colonial trade protections also exposed Latin American industries to international competition.

Step-by-step explanation:

The U.S. economy and policies have had a significant impact on Latin America over the years. U.S. economic policies have often led to increased trade and prosperity in some areas of Latin America, particularly where investment has flowed into industries such as oil in Venezuela. However, overall, these policies have more frequently accentuated the class divide and caused economic challenges. Many Latin American economies remained dependent on agricultural exports and faced increased competition from other regions. Moreover, U.S. interventions, such as implementing CAFTA and involving itself in regional politics, often aimed to support U.S. economic interests but led to mixed outcomes for Latin American countries.

Independence and the removal of colonial trade restrictions allowed European and American manufactured goods to flood Latin American markets, undercutting local industries. Additionally, the region's post-independence economy was characterized by heavy dependency on foreign capital for infrastructure projects, which often meant profits from these ventures flowed out of Latin American countries. Furthermore, policies such as Dollar Diplomacy and interventions during the Cold War added to the complexity of the relationship, often leaving Latin American economies more impoverished and unstable.

Throughout the late 20th and early 21st centuries, global trade partnerships such as NAFTA placed pressure on South American countries to protect their economic interests. Unfortunately, the legacy of colonial economic patterns continued to hinder the development of a unified South American trade network.