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GMAT Reading Comprehension (RC) | During the 1980s, many economic historians studying Latin America fo

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    During the 1980s, many economic historians
    studying Latin America focused on the impact of
    the Great Depression of the 1930s. Most of these
    historians argued that although the Depression
(5)
    began earlier in Latin America than in the United
    States, it was less severe in Latin America and did
    not significantly impede industrial growth there.
    The historians’ argument was grounded in national
    government records concerning tax revenues and
(10)
    exports and in government-sponsored industrial
    censuses, from which historians have drawn
    conclusions about total manufacturing output
    and profit levels across Latin America. However,
    economic statistics published by Latin American
(15)
    governments in the early twentieth century are
    neither reliable nor consistent; this is especially
    true of manufacturing data, which were gathered
    from factory owners for taxation purposes and
    which therefore may well be distorted. Moreover,
(20)
    one cannot assume a direct correlation between
    the output level and the profit level of a given
    industry as these variables often move in opposite
    directions. Finally, national and regional economies
    are composed of individual firms and industries,
(25)
    and relying on general, sweeping economic
    indicators may mask substantial variations among
    these different enterprises. For example, recent
    analyses of previously unexamined data on textile
    manufacturing in Brazil and Mexico suggest that the
(30)
    Great Depression had a more severe impact on this
    Latin American industry than scholars
    had recognized.


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