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Us Foreign Policies Towards Latin America


Literature Review: - US Foreign Policies in Latin America


In order to strengthen its foreign policies in Latin America, the united stets has been using different strategies. These approaches are aimed at solidifying its relationship with the Latin American countries in order to promote political and economic development. In addition, the United States of America policies also aim in establishing long-term solutions to problems facing Latin American nations such as drugs, arm possessions, and its relationship with the American country.

First Article

Various researchers and experts have analyzed the importance of these foreign policies and ways in which the United States implements them. According to Frechette (2006), despite the end of the cold war two decades ago, US foreign policy is still being shaped by its strategies. To achieve its new missions, US must employ new strategies rather than the use of paternalism and militaristic intervention. The US must increasingly adopt the new approaches sin the Latin America nations assert themselves more strongly. An exception in such strategies is trade because the upcoming trade is an essential tool to eradicate poverty plaguing the region (Frechette 28).

The termination of Cold War is significant not just because of the fall of communism in Eastern Europe and Soviet Union, but it has led to a change of strategic interest of the US in Latin America. The US used a convert force approach in to overthrow President Jacobo of Guatemala in 1973. The new approach of the US in the region shifted from communism resistance to promoting stability, growth, and democracy. In was, therefore, necessary for the US to change its policy to cooperation and abandon paternalism and interventionism (Frechette 28).

Although the US military systems in Latin America still exist, their relationship should be reformed to suit the 21st century needs. The US should decrease its military in Latin America. Latin America is portraying its increased global orientation through by increasing their collaboration with China. Although the US interests are not fulfilled, Latin America embraces the entire world by playing greater stake in the affairs of the world (Frechette 30). Concerning Venezuela, the US must approach the situation with neither alarm nor fear. The US, therefore, should realize things it should not do concern Latin America and evaluate on what it can do to promote stability, growth, and democracy. If good governance and democracy are the top priorities, US should consistently support them (Frechette 31).

Second Article

The United States has also been keen in implementing policies that would ensure foreign direct investment in Latin American countries. A study conducted by Maniam (2000) indicates that the United States had been employing different strategies to ensure economic development in Latin American countries. Transitional corporations make foreign direct investments (FDI) where a firm gains controlling interest in a foreign company. It involves complete ownership and control of a foreign business enterprise. It differs among the countries of Latin America depending on social and political stability, country size in terms of economy and marketability strength in the consumption of goods (Maniam 24). In the study, Maniam (2000) reviewed the models existing and explaining factors influencing US FDI using economic and political variables

Political stability in various models is viewed as a significant variable explaining FDI, which is a factor of the study that determines direct investments allocation in Latin America. Together with macroeconomics, being more useful to manufacturing companies unlike those taking over enterprises ran publicly by the government. Cultural distance in Latin America is also, where trust differences arise. FDI is thus more preferred due to perceived cultural distance (Maniam 28).

The study chose four variables despite the presence of an array of FDI determinants. The variables include social stability, political stability, GDP, and GDC. It was observed that a very stable correlation existed between FDI and GDP in three examined countries. Per capita GDP gave a mixture of results whereas political and social stability provided no required evidence on the way they influence FDI (Maniam 29).\

Third Article

There is also the need to evaluate the impact of United States foreign policies in Latin America especially those policies that are aimed to fight the use of addictive drugs and other substances. President Richard established the war on drugs in the early 1970s in reference to struggle to terminate drug use and production U.S.A (Crandall 192).

The war the spread across the world with many foreign countries as well as the United Nations embracing it and to date, the drug war remains stable. Through book reviews and literature analysis Crandall explains the impact of U.S. policy focuses not only on drug war failures but also on the intense destruction it caused in source countries. Editors like Eileen Rosin and Coletta Youngers argued that the collateral damages caused by drug war struggle are, restrictions on civil liberties, economic and political instability as well as abuse of human rights (Crandall 192). Drugs and Democracy represented a detailed and convincing analysis of the U.S-supported drug war in Latin America and ancient critics by the international drug war and the hemispheric policies of the U.S more widely (Crandall 193).

They also criticized drug trade as disruptive and violent and, therefore, to combat drugs and cause less collateral damage to source countries, more efficient and humane methods should be applied (Crandall 194).

Fourth Article

There has been efforts by experts to determine the significance of United sates policies in Latin America. A study conducted by Tuman and Craig (2004) explored this issues. This study evaluates economic and political determinants of US FDI in Latin America using analytical research method. The analysis involves fifteen Latin America and Caribbean countries between 1979-198. In recent years, FDI to Caribbean and Latin America has grown significantly. The US multinational companies have caused a recent investment wave all over the region. Between 1980-1998 U.S, companies were responsible for a vast majority of FDI in Latin America (Tuman & Craig 9).

US FDI growth has crucial implications for the Latin America’s new democracies performance. Various trade barriers were eliminated. U.S. FDI also helps to understand controversies that surround international influences on the domestic policy plan in Latin America. In this, article a better understanding of economic and political determinants of U.S. FDI in the Latin America. Economic variants of OLI model in which multinational companies seek the market for strong growth potential as well as the FDI inflows (Tuman & Craig 12). Political variants of OLI model put more emphasis on the importance of the domestic political environment of a recipient country. Theories of class analytical suggest that FDI decisions should be featured in a wider context of the class conflict that are under global capitalization. These theories argued that Latin America have contributed very little to change the relationship between FDI and human rights (Tuman & Craig 14). 

A multivariate model was developed to evaluate companies’ hypothesis found from class analytical approaches and OLI model. The design variables allow analysis on effects of pure trade areas, market potential, production cost, economic reforms, skills human rights and political risks (Tuman & Craig 18).

Fifth Article

Clinton’s administration decision in 1995 to modify conventional arms transfer policies and allow the sale of military technology to the Latin America has raised a much heated debate in academic, political, and military cycles (Mora & Antonio 76). The research, which used analyses of various literatures, shows the main arguments objecting President Bill’s decision to sell off fighter aircraft. The fighter sale to Latin America major in critical areas. For instance, the possibility of rejuvenated arms race in the Latin America and renewed adverse social, economic impacts (Mora & Antonio 77).

Sales of arms give a way to build and sustain military-to-military links when the US lost its significant leverage and influence with militaries of Latin America. Consequently, sales of the military lead to more exchanges and greater mutual understanding. It allows increased engagement and formation of new broader communication channels between governments and militaries (Mora & Antonio 79).

The key components of US arms trade policy to Latin America are to acquire a realistic approach that enables sales of arms to be an element of the armed forces. Additionally, attempt to maintain security and peace level, through measures that build confidence and arrangement of security corporations (Mora & Antonio 83).


Maniam, Balasundram. "U.S. FDI in Latin America: A New Perspective." Allied Academies International Conference. Academy for Economics and Economic Education. Proceedings 3.2 (2000): 24-9. ProQuest. Web. 14 Apr. 2015.

Crandall, Russell. "Drugs and Democracy in Latin America: The Impact of U.S. Policy." Latin American Politics and Society 48.1 (2006): 192-5. ProQuest. Web. 15 Apr. 2015.

Frechette, Myles. "Rethinking Latin America: A New Approach in US Foreign Policy." Harvard International Review 28.2 (2006): 28-31. ProQuest. Web. 14 Apr. 2015.

Mora, Frank O., and Antonio L. Pala. "US Arms Transfer Policy for Latin America." Airpower Journal 13.1 (1999): 76-92. ProQuest. Web. 15 Apr. 2015.

Tuman, John P., and Craig F. Emmert. "The Political Economy of U.S. Foreign Direct Investment in Latin America: A Reappraisal." Latin American Research Review 39.3 (2004): 9-28. ProQuest. Web. 15 Apr. 2015.


Title: Us Foreign Policies Towards Latin America
Length: 7 pages (1925 Words)
Style: APA


U.S Foreign Policies towards Latin America

Latin America region is of critical importance to the U.S. due to its proximity that bears close relations between the two.The region is accredited as a strong and fastest growing partner in economic development with the U.S.. Being one of the largest foreign supplier of oil and having the largest source of immigrants into the U.S., it also has numerous cases of illegal trades such as drug trades (Tuman and Emmert 9). Thereby, forming closely knit interwoven ties between the two entities through deeply rooted economic, strategic, and cultural as well as deep moral concerns. This paper seeks to provide an analysis of the U.S foreign policy towards Latin America, its position of in U.S’s global foreign policy strategies, basic U.S. policy towards Latin America and the ways in which the U.S implements them.


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