Which of the following best
explains why Latin American
countries experienced a debt
crisis in the 1980s? (1 point)
Mexico could not pay
off its loans and
needed help to
renegotiate the terms
of its loans.
Some Latin American
countries were
nationalizing particular
industries, and they
did not make money
as a result of this.
The World Bank and
the IMF cut off Latin
American businesses
from international
loans because they
wanted them to create
strong domestic
financial markets.
Because Latin
American countries
had relied on foreign
loans and did not have
strong domestic
financial markets, they
struggled to pay those
loans when profits fell.