Question 1 Use the map showing the location of the Panama Canal to answer the question. How did building this canal promote economic activity? A It improved trade between countries by making it easier to ship goods. B It turned a profit quickly and raised money to build more roads and canals. C It helped entrepreneurs across the region develop new goods and services. D It protected US businesses from competition with foreign companies.

The correct answer is A) It improved trade between countries by making it easier to ship goods.

How did building this canal promote economic activity?

It improved trade between countries by making it easier to ship goods.

Located in Panama, in Central America, the Panama Canal is an impressive work of engineering opened in 1914, after a long history of ups and downs to get this massive construction finished.

It was the French engineers who started building the canal in 1880. But in 1902, the government of Theodore Roosevelt negotiated with the French and paid them $40 million for the canal. At that time, this territory belonged to Colombia, that is why the United States supported the independence of Panama. After this happened, the United States was granted the operation of the canal until 1999, when the US gave the canal back to the government of Panama.

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