The Panama Canal was completed in the early 1900’s. For several decades it was under the United States control. In 1999, Panama gained full control of the Panama Canal. Which statement best explains why the Panama Canal is significant for development in the region?

Question

The Panama Canal was completed in the early 1900’s. For several decades it was under the United States control. In 1999, Panama gained full control of the Panama Canal. Which statement best explains why the Panama Canal is significant for development in the region?

It provides a beautiful and safe location for tourism and ship cruises.
It provides a much needed water supply to the region.
It provides a natural barrier between Panama and other Latin American countries.
It provides an international crossroads for trade.

Answer 1

The correct statement is: "It provides an international crossroads for trade." The Panama Canal is significant for development in the region mainly because it serves as a crucial trade route connecting the Atlantic and Pacific Oceans. The canal allows ships to avoid the lengthy journey around the southern tip of South America, saving both time and money. This strategic location facilitates global trade, enabling goods to be transported more efficiently between continents. To confirm this answer, you can research the history and purpose of the Panama Canal, as well as its impact on international trade and economic development in the region.