Answers and Explanation
1. Livestock-this commodity is partially responsible for deforestation of the Amazon. Cattle ranching are reported as the major cause of deforestation in the Amazon. The lands that have been deforested in Brazil are used for pasture which is estimated to cover 80% of the deforested areas in Brazil. Since 1970s, cattle farming industry has increased in Brazil making it the largest commercial cattle herd country globally.
2. Colombia is world famous for its coffee beans. The Colombia coffee has gain world fame of being one of the highest quality coffees. The country grows the Arabica beans traditionally and due to its unique geographical location, it is well suited for production of sweet and high quality coffee variety. Other varieties of coffee from Colombia include the low acidic Bucaramanga coffee and the Cucuta coffee.
3. NAFTA inspired the budding formation of a South American Trade Agreement. The North American Free Trade Agreement was signed by Canada, Mexico and the United states to start a trilateral trade bloc in the North America. Mercosur was then formed as a South American Trade bloc with a sole purpose of promoting free trade and fluid movement goods, individuals and money.
4. Gap between the rich and the poor is the biggest economic threat to political stability in South America. Poverty in South America is high in most of the countries especially in the distribution of wealth. The inequality challenges have resulted in economic and financial crisis in this region. This gap is a serious risk to economic growth and fight against poverty. Wealth inequality has hindered sustainable development and social inclusion.
5. Favela is a reflection of Brazil’s poverty. They are slum which is a low-income settlement that was historically informal urban area. The famous Favela is Providencia located at the center of Rio de Janeiro believed to have been constructed by soldiers that had no residence after the Canudos war. Favela grew due to increased migration because immigrants could not afford the expensive housing thus they turned into the slums.
6. The economic prosperity of South America decreased following World War 1 due to a diminishing trade with Europe. However the Latin American countries still pursed exportation of goods. External factors were not favorable at this time. Financial policies were more based on beliefs of religion thus more countries were depending on exportation of primary products.
7. Because of diminishing trade with Europe following World War 1, South America became more self-sufficient as a nation by manufacturing its own goods. The performance of export industry was disappointing after the war thus it became very difficult to invest and promote in export industry. When the Great Depression reached the region all countries in the South America turned to depending on primary products and being self-sufficient.
