This conventional wisdom is wrong.
Opportunities for the brave and smart Despite the headlines, for U. The Central and South America region overall — which includes both Spanish-speaking countries such as Mexico and Portuguese-speaking countries such as Brazil — is embracing more business-friendly policies to attract foreign investment.
There are many reasons for reluctant American businesses to consider expansion in Latin America, according to Susana Gonzalez Murillo, recently retired vice president and country manager for Spain, Portugal, Canada and Latin America at U.
But they boil down to three main considerations: For instance, Brazil has posted positive GDP growth in after two years of contraction. In addition, Latin American nations have made a concerted effort to lower the overall cost of doing business in an effort to attract foreign investment, Murillo says.
And in many countries, the middle class is often educated in the United States and fluent in English, Murillo says.
This makes it easier for American businesses to find a market and local managers, while navigating their business in a foreign nation.
Murillo notes that for years Colombia was known for instability and violence. Also, Chile and Peru now enjoy political stability after years of internal strife. Risks still exist Admittedly, there remain heightened risks in Latin America.
Venezuela teeters on the brink of economic collapse, while Brazil recovers from a massive corruption scandal and a deep recession that saw GDP decline 3. These factors create the possibility of assets leaving the country, says Christine Bravo, senior vice president of International Financial Institutions at U.
For example, Operation Car Wash, a Brazilian anti-corruption investigation, revealed a scandal in which leaders from across the region received bribes from construction companies in exchange for government contracts. Three keys to success 1. Latin America comprises 20 nations and more than million people speaking different languages with different cultures.
Bravo points out that while the risks may seem universal across Latin America, every country is different. Does it fit into Central America?
Doing business in any new market is akin to a startup. And we offer resources to help organizations get started. However, businesses with a long-term vision of expansion may want to take a closer look. You may find new markets for your goods and services in Latin America.
To learn more about doing business in Latin America, visit U.We investigated in this paper the role of financial development, or more widespread access to finance, in promoting economic growth in a panel of four Latin American countries which experienced political transitions in the s and severe macroeconomic conditions in the s and early s.
Latin America in economic recovery, political risk The outlook for Latin America in is decidedly mixed. On the one hand, a series of elections in key economies, taking place amid increasing anti-establishment sentiment linked in large part to corruption, is heightening political risk.
Sep 20, · After a decade of high growth thanks to the commodity super cycle, Latin America has lost its glow: economic growth is near zero, equality gains have stalled, and the political landscape is .
After five years of deceleration and one of recession, Latin America should register modest economic growth of % this year, according to forecasters. The picture varies from country to country.
Nov 07, · After a decade of high growth thanks to the commodity super cycle, Latin America has lost its glow: economic growth is near zero, equality gains have stalled, and the political landscape is changing. While individual nations in the region are faring differently, all Latin American countries are facing a challenging economic climate.
Although many countries seemed to resume economic growth during the early eighties, at the time of writing most Latin American economies were again experiencing negative economic growth.