Latin America Case

        In the time period given, Latin America has experienced many effects from the changes in the global economy throughout time. The causes and effects of the Great Depression, World War 1 and the changes of the new 20th century affected the entire status of the world economically. Latin America has grown and suffered and was affected greatly from the effects of the world events from 1914 to now, and has left a permanent impact in its economy.

        The Great Depression was a devastating global event that was caused by multiple straining factors. There was an overall overdependence on American loans and buying that left other countries hanging off a cliff economically. There was also an increase in tariffs and protectionism, and industrial and farming surpluses led to deflation. Overall poor bank management destroyed the world economy. World War 1 was a huge leading factor to the Great Depression. The war was expensive, and it took hundreds of billions of dollars to rebuild the economy. The stock market had crashed. Latin America was destroyed by the Great Depression. They were victims to being over reliant on American loans to recover from war. European trade from WW1, however, did bring prosperity to Latin America. Yet it forced import substitution industrialization to make up for the lack of European imports. The wave of bank failures had a ripple effect on banks around the world, and especially on Latin America. Latin America was left dry and struggling by the Great Depression killed their export economy. Latin America has grown and suffered from the effects of the Great Depression and that had a permanent effect on its economy.

        The 20th century was reborn from World Wars and had several themes that affected the economy globally. There was active commercial trade, and there were trade interactions in every region. National tariffs in the U.S., however, weakened global trade as well as the supply and demand for oil-producing nations. Mass consumerism created a truly global marketplace. Latin America was a big part of the global trade. Columbia was a major participant in international drug trade. Brazil exported exotic woods, Venezuela was a member of OPEC, and Mexico produced oil. After communism, more nations implemented free-market economies. Latin America was U.S. Cuba’s leading trade partner till 1959, and Cuba’s economy was tied to the USSR after the Cuban Revolution. The economy fell apart after the USSR dissolved. Latin America had risen and fallen from the effects of the changes of the new 20th century, and it had a permanent effect on its economy.