1. EXERCISE # 3
1.The modern / liberal period post-Independence was characterized by ____ (export/import) CHOOSE ONE economies in Latin America.
2. What is Import Substitution Industrialization (ISI)?
A. A part of Structural Adjustment Programs that allows the import of manufactured goods, but not their export.
B. A means of substituting imports for industrialized nations.
C. The complete opening of an economy to the global market.
D. a strategy aimed toward reducing foreign dependency by manufacturing rather than importing goods.
3. Why did ISI fail?
A. Because industrialized nations refused to share technological knowledge with Latin America
B. Because produced goods were low quality and there was no market for them.
C. Because the Reagan administration drastically increased interest rates
D. None of the above are correct: ISI did not fail.
4. What is the “Washington Consensus”?
A. the World Bank, International Monetary Fund and the World Trade Organizations policies.
B. a Latin American economic strategy that parallels the Lewis strategy in the Caribbean.
C. the agreement in US government that socialist tendencies in Latin American nations should be stopped by whatever means necessary
D. the policy that promotes decreasing taxes on the wealthy

2. 5.The main success of neoliberalism in Latin America was a drop in ______________________________.
6.The post-neoliberalism period in Latin America is marked by decreasing dependence on loans from the World Bank and the election of ___ (pro-globalization / anti-globalization) CHOOSE ONE presidents.
7.The ideals of public education, protection from foreign powers in politics and unification of Latin American countries are principles first promoted by which Independence leader in Latin America? ______________________________________
8.What changes have been brought about in Latin America, in the past twenty years, by the Bolivarian Alliance for Peoples of Our America (ALBA)?
A. a return to ISI in small nations
B. Member countries get aid, technical assistance and cheap oil from Venezuela
C. the member nations have made advances in their central goal: becoming one new nation.
D. this organization has greatly bolstered the militaries of certain Latin American nations
9.How do the “Banana Wars”, explained in your textbook, illustrate the vulnerability of Central American and Caribbean economies?
A. Banana plantations destroyed the soil fertility, but not the huge market demand for bananas, so these nations continued to plant bananas and further erode their environments.
B. Former colonies enjoyed a guaranteed market in the EU from their former colonial ties until the WTO declared that the EU’s guaranteed banana market was a barrier to free trade
C. Civil wars broke out in several nations over competition for banana markets.

3. 10.What is tourism’s “roller coaster revenue pattern”?
A. Tourism goes up and down with the global economy
B. Some countries charge far more for tourist services than others and it changes drastically.
C. Tourism goes down when there is “bad press” .
11. How did 9/11 affect the Caribbean economy?
A. Many people became convinced that the terrorist attack on 9/11 was committed by terrorists who had been “hiding out” in Venezuela.
B. Many items formerly imported from Latin America to the US stopped flowing.
C. Travel abroad decreased due to fear and airport restrictions.
D. It boosted the tourism industry because people who would ordinarily travel to the US went to Latin America and the Caribbean instead.
12. What are maquiladoras?
A. Goods sent by workers abroad to their relatives at home.
B. Members of a social movement that is struggling for land rights in Mexico
C. Factories in Latin America and the Caribbean for assembling materials (clothes, electronics, etc.) for export.
13. What are “phantom landscapes”?
A. the false picture of economic well-being of Latin America, based on the advantages people receive from remittances from family members abroad.
B. former rainforests that have been burned and cleared for growing crops that do not compete on the global market
C. the banking industries that used to flourish from offshore financing but have become restricted due to US regulation.