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AP World History: Modern
Unit 6 – Industrialization's Impact (1750-1900)
Topic 6.5
How did Argentina's reliance on Foreign Direct Investment (FDI) lead to an economic crisis in the late 19th century?
Argentina defaulted on its FDI payments causing international investors to withdraw their capital.
High government debt levels led to a currency crisis which was exacerbated by stringent conditions set by British banks for loan renegotiation.
Excessive borrowing from other countries caused inflation that devalued Argentina’s currency leading to an economic downturn.
The failure of infrastructure developments financed by FDI plunged Argentina into financial distress.
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AP World History: Modern - 6.5 Economic Imperialism
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Economic Crisis
Foreign Direct Investment (FDI)
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Cram Mode
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Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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