International marketing strategies in industrial clusters: Insights from the Southern Hemisphere

This paper examines co-operative marketing strategies among clustered-based firms in the most important wine producing and exporting countries in the ‘new world’. The research examines the development of active inter-firm marketing co-operation undertaken by firms to achieve competitive positioning in international markets. The results of a survey of managers located in Argentina, Australia, Chile and New Zealand are presented. The empirical contribution comes from the unique comparative data from regional clusters in four countries which are seen internationally as innovative producers and marketers, all strongly export-oriented, but at different stages of economic development and positioning in the global marketplace. In addition, this study makes a significant contribution to agglomeration theory by confirming the importance of sharing marketing knowledge to build sustainable competitive advantage in international markets. The theoretical contribution builds understanding of international marketing strategies within the Southern Hemisphere group of emerging countries and offers new insights on international marketing practices for emerging firms from both the developed economies in the Pacific Ocean region and Latin American emerging economies.     

Kola real's low‐cost international expansion strategy

This case provides an interesting and relevant scenario of a family‐owned firm entering the low end of the cola market in Peru and expanding into other Latin American countries. For a family business owner, or for an entrepreneur looking for business pathways in Latin America, this look into Ajegroup's strategic planning to take advantage of expansion opportunities in the region can serve as either a cautionary tale, or an avenue toward future growth. The case is accompanied by comments from practitioner experts. © 2008 Wiley Periodicals, Inc.     

Unintended effects of IFRS adoption on earnings management: The case of Latin America

We study the determinants of earnings opacity in the six largest Latin American economies (Argentina, Brazil, Chile, Colombia, Mexico, and Peru), in particular the effects of adopting IFRS. Using panel data on 871 listed firms during the period 2000 to 2016, we find that in Latin America the adoption of IFRS caused firms to substitute high quality audit practices with the newly imposed regulation, to the extent that its effect on the degree of opacity in the region became unintendedly positive. The results hold after a number of robustness checks. Thus, we provide compelling evidence against the belief that the mere adoption of the IFRS is sufficient to guarantee transparency in emerging markets.     

Strategic alliances in emerging Latin America: a view from Brazilian,Chilean, and Mexican companies

Brazil, Chile, and Mexico constitute the leading newly industrialized countries (NICs) of Latin America. It is within these markets that the world expects significant economic gains over the next decade. Local companies in these countries are allying with foreign companies to enhance their competitive positions, yet little is understood about such interfirm collaboration with partners from these Latin American countries. Our study examines the strategic objectives of these Latin American companies, partnership structures, and their satisfaction in collaborating with companies from developed countries. Although existing studies have historically examined the dyad of strategic alliances from a perspective of developed countries (e.g., the U.S.), our study explores the issue from a perspective of companies in emerging Latin American economies.     

Exchange market pressure,commodity prices,and contagion in Latin America

Over the past two decades, Latin American currencies have faced not only pressure to devalue but also periods of uncomfortable appreciation. Domestic macroeconomic factors, as well as global events and contagion, might bear part of the responsibility. This study constructs a monthly index of exchange market pressure (EMP) for four Latin American countries before using vector autoregressive methods to test the influence of commodity prices, macroeconomic variables, and external factors on each country's index. While inflation is an important determinant of EMP, we conclude that Chile and Peru are more likely than Mexico and Brazil to face pressure when commodity prices fall. This supports the idea that these two countries have “commodity currencies” and that their exchange markets are most vulnerable to international contagion.     

Innovation and business research in Latin America: An overview

Innovation in Latin America is a challenge for achieving development. Several Latin American countries and businesses are attempting to increase innov ation and entrepreneurship but they face substantial challenges and difficulties. Institutional, governmental and business policies and practices need to be enhanced in order to increase such innovation. Increasing business research in Latin America and university-business partnerships is probably key in such endeavor. This special issue provides some evidence regarding these challenges at the company level, industry level, and country level. This issue also includes three cases showing Latin American company experiences with financial, marketing and new product innovations and market changes.     

Business Ethics in Latin America

Business ethics is a relatively new topic of academic discussion in Latin America. Corruption and impunity came to be serious moral diseases in the region, probably as a result of a long period of dictatorship in most countries. Low ethical standards in the politics have had deep impact on individuals, organizations and economic systems. Excessive consumption, materialism and selfishness, in contrast with real poverty, have been responsible for a sloppiness in attitudes and principles in many Latin American countries. Even though the majority of the population belongs to the Roman Catholic Church, the lack of education has led people to a dichotomy: faith and business practices are often very distant from each other. Several isolated efforts have been done in order to enhance business ethics through education, publications and professional activities. The relationship business-academia has proved to be an excellent initiative for this objective, mainly in Mexico, Brazil and Peru.     

The organisation of British textile exports to the River Plate and Chile: Merchant houses in operation,c. 1810–59

During c. 1810–59 over 260 British merchant houses operated in the River Plate or Chile, and many more in the rest of Latin America. These were times when Anglo-Latin American economic relations remained largely commercial, since the region was an important commercial partner of Britain. British investment was unimportant during this period in the region. The main economic activity of these mercantile houses was the import of textiles in exchange for bullion, specie, bills of exchange and local produce. Yet the textile trade has received little attention, despite the importance of the region as a market for British manufacturers. This paper describes in detail the relations between textile manufacturers and/or merchants in Britain and merchants on the spot, in particular for the marketing oftextiles, the backbone of the business of British merchants operating in Latin America. This paper focuses on the particular case of the Southern Cone during c. 1810–59.     

Trading with Neighbors: Regional Stock Exchange Integration—The Mercado Integrado Latinoamericano

ABSTRACT

Who gains from the regional integration of stock exchanges? Exploring this question can identify motivators driving stock exchange integration between countries, and contribute to the wider debate whether such perceived gains are likely. This article examines the Latin American Integrated Market (MILA), currently comprised of Chile, Colombia, Mexico, and Peru. The plan, process, and difficulties facing MILA are examined. We conclude that investors from the region appear poised to reap the greatest rewards in the long-term, while regional brokers and investors, especially those based in Peru, have benefited most from the operation of MILA since 2011.     

Protectionism in the European Union: Implications for Latin America

In the course of the 1990s EU exports to Latin American countries have grown considerably. At the same time, however, EU imports have increasingly favoured eastern Europe and the emerging Asian markets. Latin America continues to lose presence in European markets. What are the reasons for this? Is European protectionism the root of the problem?     

Stock pricing in Latin America: The synchronicity effect

This paper investigated whether the stock price synchronicity level (SPSL) is a pricing factor in the Latin American scenario. To do so, the shares with the highest liquidity level listed in the stock exchange in five Latin American (LA) countries (Argentina, Brazil, Chile, Mexico and Peru) were used. The results indicated that the SPSL is associated with a positive premium. This premium was obtained by the CAPM model and by the Fama-French three- and five-factor models. There was evidence that the average SPSL increases in periods of greater turmoil in the financial markets. Moreover, it was found that the SPSLs are not associated monotonically with the efficiency levels of stock prices. Overall, the use of the SPSL factor in asset pricing models reduced the bias in estimating the stock premiums in LA.     

对中国—智利自由贸易区贸易效应的引力模型分析

近年来,区域经济一体化的进程不断加快,这是世界经济发展的必然结果。随着中国与拉丁美洲经贸关系的不断发展,中国已和智利、秘鲁和哥斯达黎加三个拉美国家签订了自由贸易协定,为双方的贸易带来了可观的收益,极大地推动了中国参与区域经济一体化的进程。本文在综述国内外相关文献的基础上,以中国与智利的自由贸易协定为例,采用引力模型,定量研究两国的经济一体化程度以及区域经济一体化所创造的贸易效应。     

The impact of internationalization degree on cash levels: Evidence from Latin America

Although cash management has been extensively studied, the cash policies of multinational corporations (MNCs) outside of the U.S. market have been underexplored. We fill this gap in the literature by comparing the cash policies of MNCs to those of non-MNCs in a Latin American setting (Argentina, Brazil, Chile, Colombia, Mexico and Peru). Using different proxies for multinationality, we find evidence that the cash holdings of multilatinas are significantly higher than those of their domestic counterparts. Overall, given that foreign markets may offer the best investment opportunities for many MNCs, our results are consistent with the argument that multilatinas maintain higher cash levels to take advantage of the greater growth opportunities abroad. We contribute to the literature on cash management and international business by expanding knowledge regarding the efforts of MNCs in emerging markets. Our results hold following a series of robustness checks and endogeneity concerns.     

Internationalizing Business Education in Latin America: Issues and Challenges

This article examines the extent of internationalization of business education in Latin America and identifies the key challenges facing the Latin American business schools. Based on a survey of the business schools that are members of CLADEA (Consejo Latinoamericano de Escuelas de Administracion—Latin American Council of Management Schools), and also from available information from various public sources and the literature, this study finds that most Latin American universities recognize the importance of internationalization of curricula and have undertaken measures to provide a business education that creates a global awareness among students and sensitizes them to differences across countries. The study also identifies the areas that need further attention and resources for widening the extent of internationalization of business education in Latin America and recommends ways to address these challenges.     

Patterns of Economic Interdependence in Latin America

This study investigates business cycle synchronization and transmission patterns among the major Latin American countries and their linkages with the United States and Europe. Correlations, principal components, trade patterns, vector autoregressions, and impulse responses are used to discern the business cycle transmission patterns.

There is moderate evidence of a unique Latin American business cycle and of business cycle transmission among the Latin American economies. Most transmission linkages come from outside Latin America. The European business cycle has a slightly stronger influence upon most Latin American economies than the influence of the US business cycle. Brazil is clearly the most influential Latin American economy in terms of business cycle transmission.     

The Relations between the European Union and Latin America and the Caribbean

The EU is the second-largest trading partner (after the USA) of the Latin American and Caribbean countries (LAC). The European Commission is presently in the process of negotiating association agreements with three Latin American regional trading associations, a result of the fact that the EU has traditionally preferred multilateral treaties to bilateral ones as a means of its international trade policy. These negotiations have proved to be very complex and progress is difficult. Will the two-yearly meeting of the Heads of State and Government of the EU and the LAC in Peru in May 2008 take place under the sign of a return to a policy with more emphasis on bilateral agreements? The recent agreement with Brazil seems to point in this direction.     

International competition in Latin American telecommunications markets

Current market liberalization and reforms in Latin America are attracting a great deal of interest by global telecommunications companies and investors. This article focuses on recent liberalizations and reforms in the telecommunications markets of Chile, Argentina, Mexico, and Venezuela. The article reviews the winning bids for these markets 'and analyzes the strategic alliances of investors, global telecommunications companies, and local investors. The article concludes with an analysis of the experience to date in opening Latin American telecommunication markets to free competition and speculates on future developments in this sector. © 1993 John Wiley & Sons, Inc.     

Party time: recreation rituals in the world of B2B

Abstract

We examine the role of business parties in business markets: why do B2B companies spend such large amounts of money to sponsor events meant for public consumption, such as sporting events, when most of their activity involves selling to other organisations? Drawing from extensive qualitative fieldwork in the world of tennis tournaments, we detail the specific universe of parties that happen backstage, between companies sponsoring these events. This context helps illuminate the critical role of business parties in business networks. Far from being mere recreation at the company’s expense, business parties are important opportunities for executives to develop and manage their relationships. We show that a business party functions as a particular kind of ritual by creating a distinct universe with its own language, gestures, and other modes of interaction.

Summary statement of contribution Our theoretical contribution to the literature on relationship marketing is to detail the unifying function of business parties in local business markets, where relationships with a variety of organisations are key to a company’s success. Our methodological contribution is to illustrate the relevance of anthropological approaches and concepts, such as rituals, to the world of B2B.     

A time diversification approach to the emerging stock markets of Latin America: Argentina,Brazil, Chile,and Mexico

This article provides the analytical basis for the adoption of a longer view to portfolio diversification in Latin America. The benefits to be gained through time diversification are studied in the context of four countries: Argentina, Brazil, Chile, and Mexico. The empirical evidence of actual annualized returns indicates that risk in investment in Latin American equity returns tends to diminish over longer term investment horizons.     

Ethical Differences Within Latin America

Abstract

As the volume of trade within Latin America increases an understanding of cultural differences between countries will become increasingly important. One key issue that has received little attention to date is the variation in ethical beliefs across Latin American borders. In this study the impact of cultural attributes on four key ethical dilemmas is examined. Vignettes are developed for ecological conservation, bribery, sex discrimination, and child labor dilemmas and are included in a survey which is administered to multinational managers from Ecuador and Chile. Results indicate that certain cultural traits are linked to responses to each of the ethical dilemmas.