Final answer:
The newly independent Latin American countries faced economic dependence on foreign investment, which had a significant influence on their development. They opened their markets to competitive foreign goods, causing a decline in local industries. The lack of internal investment hindered their industrial development and economic growth.
Step-by-step explanation:
The newly independent Latin American countries faced several difficulties. One major challenge was the economic dependence on foreign investment, which had a significant influence on Latin America through the mid-1800s.
After gaining independence, Latin American countries opened their markets to competitive U.S. and European manufactured goods, which flooded in and created problems for local industries. The local industries could not compete with the cheap imports, leading to a decline in local manufacturing and a loss of revenue.
Latin American countries also faced challenges in developing their own industries due to the lack of internal investment. Many industrial improvements, such as mines and railroads, were funded by European and U.S. banks, and much necessary equipment was imported from Europe. This reliance on foreign investment left little money at home for domestic projects, like building roads and telegraph lines.
The economic dependence and limited industrial development hindered Latin American countries' ability to achieve economic growth and self-sufficiency.