Question

Which of the following are the export goods of South America?
A. Coffee
B. Cotton
C. Sugar
D. All of the above

Answer 1

Hint:
External trade signifies a key element in the economic growth of South America. Essential imports, particularly capital and basic intermediate goods, are needed to accelerate the industrialization process.

Complete solution:
External trade signifies a key element in the economic growth of South America. Essential imports, particularly capital and basic intermediate goods, are needed to accelerate the industrialization process. Step by step solution- South America's major exports, in terms of value, are mainly primary commodities, Cynthia Woods foodstuffs and plant products, fuels, and raw materials. Referring to the first group which constitute the most important commodities like sugar, bananas, cocoa, coffee, tobacco, beef, corn, and wheat. Products of Oil, natural gas, and petroleum dominate the second group. Whereas linseed oil, cotton, cattle hides, fish meal, wool, copper, tin, iron ore, lead, and zinc top the third group. Goods manufactured by South America have gained major access to world markets also. Approximately three-fourth of South America’s imports includes machinery, vehicles and parts, chemicals and pharmaceuticals, paper and paperboard, textile products, and other manufactures. Around one-fourth of South America’s imports are from the United States, while one-seventh are from western Europe, and the remaining one-seventh originate in South America. In general, foreign trade sector of South America has been slow to diversify; it is mostly dependent over imports for the domestic supplies of industrial goods and suffers with an imbalance in trade with the industrialized countries.

Hence, the correct answer is option D.

Note:
Despite increases in trade, South America’s share of world trade has remained small, primarily because the volume of trade between major industrialized countries has grown at an even faster rate.