In what way was latin america impacted by the great depression? a. exports from latin american countries increased. b. us investment money increased due to new opportunities in latin america. c. us investment money was cut off, causing large economic downturns.

The third alternative (C) is correct.

The Latin economy was, and still is, a major exporter of agricultural products, and the markets for Latin Protestants were Europe and especially the United States, which also invested in the infrastructure of that region. The Great Depression affected the entire Western economy, and quickly reached Latin America.

At the time of the Crash of the New York Stock Exchange in 1929, papers from the region were immediately impacted, affected by the high dollar. Financing to the productive sector declined and interest rates increased. The drastic decline in US investment has caused the Latin American economies to collapse.

Moreover, in the development of the Great Depression of the 1930s, the United States and Europe also considerably reduced the import of grains from Latin America, damaging dramatically the Latin economies. In Brazil, for example, the Government incinerated 18 million bags of coffee that would be exported, but did not obtain a consumer market.

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