chapter  1
Latin America in the World Economy
WithRobert N. Gwynne
Pages 19

With the exception of Cuba, the economies of Latin America are closely interlinked into the world capitalist system. Generally speaking Latin American countries realise that they receive net benefits from interaction and trade with the industrialised countries of the West and those less developed countries that participate in the Western trading system. With declining prices and world market share in non-fuel commodities, it has been necessary for those Latin American countries without large oil surpluses to increase their exports of manufactures, the most dynamic sector of world trade. Economic growth and industrialisation in Latin America are increasingly affected by the flow of international capital and its relative abundance or scarcity. Many Latin American countries became part of an international financial system in which many countries seemed to benefit apart from those poorer countries that bankers collectively thought of as high risk.