untries reliance on imported manufactured goods and therefor decrease the Countries import-export imbalance, which arose from the difference in the price of selling their primary products in exchange for foreign manufactured goods. (Alan Gilbert, 1974)
             Between the 1930's and 1980's Latin America had turned away from the International economy, preferring protectionist policies designed to protect the home market from imported manufactured goods. Latin Americas long period of protectionist policies shaped the regions economic structure in a fundamental way, from early on high import tariffs and prohibitions created a severe anti-export bias, that discouraged both the growth and diversification of exports.
             The discouragement of export activities took place through two main channels. The first was that import tariffs, quotas and prohibitions increased the cost of imported materials which were used in the production of exportable goods, thereby increasing the cost of the exported goods and decreasing the effectiveness of the protectionism. For years a large number of exportable goods, especially those in the agricultural sector had negative rates of protection. Secondly the minefield of protectionist policies resulted in real exchange rate over evaluation that reduced the degree of competitiveness of exports. This led to the poor performance of the export sector and the inability to develop non-traditional exports. Latin Economies had created a situation where the policies that they had put in place to reduce Latin America's dependence had the effect of making a structure where the sources of foreign exchang
             ...