Summary: Doing Business In Latin America

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1 The economic leaders of the world have been underperforming. Even China’s economy has missed projections and is exhibiting growth in the single digits. For some, a slowdown in global economic growth could result in decreased demand for commodities and goods. Economies based largely on manufacturing like China and Indonesia will be faced with challenges that some Latin American countries will be relatively insulated from. Another opportunity stemming from the changing global economy is that the previous emerging economies like China, India, and the MINTs are also diversifying. China, for example, is no longer so dependent on manufacturing and has become more competitive in research and technology markets. As these economies mature and …show more content…
Historically and into present day, there are several realities that cause doing business in Latin America to be challenging. Much of Latin America has been plagued by corruption, which has systematically trickled into every facet of the economy. Corruption has raised barriers to doing business, diverted funds away from important societal pillars like education, infrastructure, and healthcare, and has given several countries a poor international reputation. All of these effects have made Latin America – some countries more than others – inordinately difficult to do business in. Is that a plus or a minus? There is a possibility that these conditions could prohibit some companies from even considering doing business in Latin America. Those companies willing to assume the risk and provide the upfront investments, however, may have a competitive advantage as these emerging markets continue to …show more content…
For instance, Mexico has a culture of male-led family culture that trickles into the workplace. This can manifest as a risk of potential lack of respect for female management or a tendency to promote male employees. While not necessarily prohibitive in itself, that type of reputation could discourage multinational corporations who have concerns for their public image from establishing operations in the area. Gender parity has been in the public eye for years, but there is much more social pressure for companies to ensure fairness in the workplace. Countries like China and Poland have carried out the initiative to cultivate female success in the workplace. Both countries’ makeup of senior management is around 50% - far above the global average. Latin American countries have seen an increase in female leadership, but will need to be more proactive to keep up with global trends. The U.S. is also slightly behind the global average of female leadership. I believe an opportunity exists for U.S. companies to establish more proactive measures with their Latin American partners for a more balanced and fair

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