Give geographical reason : Industrial growth is limited in South America.

Answer: Physical difficulties, poor infrastructure and economic factors have restricted industrial growth in South America.

• Large areas are covered by dense equatorial forests (Amazon basin), the high Andes and dry regions, which are difficult to develop.
• Transport and communication networks are poorly developed in the interior, so raw materials and markets are not well connected.
• Shortage of capital, technology and skilled labour; dependence on foreign investment.
• Economies have depended mainly on export of raw materials (minerals, coffee, meat) rather than manufacturing.
• Political instability in the past and small domestic markets in many countries. Industries are concentrated only in a few areas such as south-east Brazil, Buenos Aires and Venezuela.