Question

5. Why did most countries of Latin America follow inward-looking strategies after WWII? Discuss changes in the economic history of Latin America before WWII. Then discuss 3 of the components of import-substitution industrialization followed in the region and provide an example of a typical ISI business.

Answer 1

Most of the countries of Latin America followed inward looking strategy because of the great depression in in 1930s, as they export primary products and imports all the industrial goods which is consumed by them because of this there was a drastic decline in the their foreign sales.

Before the World war 2 relations of Latin America with Germany was good. As many of the countries of Latin America had good trade Germany.

Import substitution industrialization is a trade policy that looks after foreign imports with domestic production. Its main objective is is that country should reduce its foreign imports through domestic production of industrial goods. It has a intention to to reduce development and self sufficiency for the domestic market.