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AlexFokin [52]
3 years ago
14

What step did mexico take to recover after world oil prices collapsed in 1981?

History
1 answer:
igomit [66]3 years ago
8 0
The government gradually increased their oil production to prevent an inflationary spiral that could hinder the recovery of the economy. They also declined their participation in the boycott of the 1980 Summer Olympic Games held in Moscow led by the United States. When the US and Mexico could not concur on the price of the natural gas, the latter decided to widen its excess resources rather than selling it to the US at a low price. Also, despite the defiance of the US, Mexico recognized the Farabundo Martí National Liberation Front rebels in El Salvador as a representative political force. The US remained as a major oil customer and its major source of investment capital to Mexico even after those steps taken by Mexico. By 1981, the latter became the fourth largest oil producer throughout the world.
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