Economics of Contemporary Latin America
The name of the book : The Economics of Contemporary Latin America by Armendariz, Larrain
PLEASE WRITE ONE PAGE FOR CHAPTER2’S QUESTIONS, ONE PAGE FOR CHAPER 3 QUESTIONS, AND ONE PAGE FOR CHAPTER 4’S QUESTIONS. THANKS
CHAPTER 2:
1. What were the main advantages and disadvantages of Latin America’s Belle Epoque?
2. What is the commodity lottery and in what way can it explain growth in some countries and not it others?
3. In what way can within-country income inequalities be explained by geography considerations?
CHAPTER 3:
1. Briefly explain the five salient features of ISI policies in Latin America.
2. What were the main perils of ISI policies in practice?
3. What were the main ideological criticisms against the ISI protectionist paradigm?
CHAPTER 4:
1. Explain the similarities and differences between the two main debt crises in Latin America during the 20th century.
2. What were the main causes of the debt crisis of the 1980s?
Reading Questions Based on Chapters
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Date
Reading Questions Based on Chapters
Chapter #2
Q1
Latin America's Belle Epoque was characterized by economic growth, scientific progress, and optimism. This was an era that oversaw great sociocultural development and increased nationalism. There was a great deal of increased self-awareness amongst the population as new ideas continued being shared across nations around the world. While colonialism was still there, there was also increased racial awareness and self-identity especially in Africa and Asia. The era saw significant advantages to communities regarding artistic freedom, technological advancements, social affluence, and cultural progress (Armendáriz & Larraín, 2017). For the first time in history, democracy flourished and extended freedom across Latin America. However, to a disadvantage, La Epoque spurred higher tariff rates than the rest of the world.
Q2.
Commodity lottery is among the crucial factors that have played a role in Latin America's development. The concept refers to a country's natural resource endowment that defines the growth path (Armendáriz & Larraín, 2017). Commodity lotteries explain the growth in some countries based on key products available for trade or export. For instance, the export of rubber incurs different economic impacts than that of coffee or meat. Practically in Latin America, the principal reason Colombia excels more than Peru is linked to major export of oil and coals, whose prices are stable, while the latter depend on copper.
Q3.
Income inequalities within a country can be explained by geographical considerations based on available resources and opportunities. Individuals are sorted spatially by their income level since the ability to pay always determines people's residential choices and capacity to afford certain neighborhoods. Thus, people experience different types or standards of living, producing a class divide. This makes the whole situation even more complex for sustainability.
Chapter #3
Q1.
The Import Substitution Industrialization (ISI) policies in Latin America (LA) were adopted with significant characteristics. They include heavy investment in primary local industries, ...