Because of diminishing trade with Europe following World War I, South America became
increasingly isolated and began to look inward for economic opportunities. Countries in South America started to focus on developing their own industries and resources, leading to a period of economic nationalism and protectionism.
This shift towards domestic economic development marked a turning point for South America, as countries sought to reduce their dependence on foreign markets and promote self-sufficiency. This period of economic nationalism led to the growth of industrial sectors and diversification of economies in the region.
Overall, the diminished trade with Europe following World War I played a significant role in shaping the economic policies and development strategies of South American countries during this time. It also laid the foundation for a more self-reliant and independent approach to economic growth in the region.