According to the Rostow's Model of development, many Latin American nations are categorized in Stage 2 (Pre-requisite for take-off). This means that these nations will need to acquire external aid and technical assistance in order to progress to the next stage of both economic and social development. The development of Latin American nations will not go far without external aid or technical and monetary assistance.
American aid is needed, but it will not be received without skepticism (Waggoner, 1970). American foreign investments have totaled up to $9 million in 1968; however, there is a prevailing attitude of cynicism against foreign investors. Latin American nations do not want to find their productive enterprises and industries being controlled by "aliens".
The Latin American objection to American enterprise is not entirely suspicion. In the "Latin-American way" of business, business is part of the total scheme of things; it is part of the family, and is done among friends in a leisurely and understanding way. Conversely, the "American-way" of trading is efficient, purposeful, direct, single-minded and materialistic. This disparity might cause the original Latin American culture to gradually erode as American enterprises are set up (Subramaniam, 1992).
Moreover, historical baggage has resulted in anti-American sentiments. These historical events include: