Answer:
The Great Depression of the 1930s was a worldwide event that was triggered in part by developments in the US and financial policies. As the decade progressed, it influenced US foreign policies to the point where the US government became even more isolationist. As stated within Chasteen “Nationalism” “The Great Depression of the 1930s finished the demolition of neocolonialism and energized nationalist movements throughout Latin America. In the years following the 1929 crash of the New York stock market, the volume of Latin America's international trade contracted by half in a violent spasm. Governments that depended on the export boom collapsed everywhere.” For Latin American governments, the Great Depression created significant monetary challenges. Not only was it difficult to find enough foreign cash to finance external trade, particularly to pay for imports, but the servicing of international debt was also becoming increasingly challenging. Governments in Latin America have historically relied on export taxes and tariff levies on foreign imports to generate money. However, as commerce declined, revenue declined as well. The majority of Latin American nations suspended payments because of serious balance-of-payments problems, budget deficits, and the expiration of gold reserves.
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