Question

How is Central America impacted by a recession and financial problems in the United States?

Answer choices:

A. Sale of exports from Central America is reduced

B. Fewer opportunities for emigration to the U.S.

C. More money will go to Central America instead of the U.S.

D. No impact at all

Answer 1

A. Sale of exports from Central America is reduced.

Central America is heavily dependent on exports to the United States, particularly in industries such as textiles, agriculture, and manufacturing. During a recession and financial problems in the United States, consumer demand decreases and imports from other countries decrease, resulting in a reduction in exports from Central America. This reduction in exports can have a significant impact on the economies of Central American countries, leading to job losses and a decrease in economic growth.