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.     

Location Advantages,Firm Advantages,and Export Success in the Latin American Automotive Parts Industry

Abstract

This paper examines the influence of location advantages and firm-level advantages on the propensity of Latin American firms to export. An empirical test based on Latin American firms in the automobile parts industry suggests that firms in more competitive Latin American country environments are more likely to export than those in less competitive country environments. Also, older and larger firms are more likely to export than are younger and smaller firms, and businesses that are subsidiary companies are more likely to export than are independent companies. Implications for managers and policy makers are presented.     

How Latin American Students Perceive American Advertising

The study reported here was designed to examine the attitudes of Latin American students toward American advertising. The attitudes of 188 Latin American students were investigated, and comparisons were made with a matched sample of 193 American students. The results showed that the Latin American students' attitudes toward advertising were different from those of their American counterparts. Latin American students were more likely to have stronger attitudes, both favorable and unfavorable, toward specific social and economic dimensions of advertising. Attitudes expressed by Latin American students were not related to their length of stay in the United States.     

Economic integration across Latin America: Evidence from labour markets, 1990–2013

Combining macroeconomic and microeconomic data and three indicators of international market integration, this paper assesses the degree to which Latin American labour markets are integrated. The results suggest that relative to East Asia, Latin American labour markets are somewhat more integrated, but considerable differences across countries persist. In addition, the evidence indicates that the degree of labour market integration across Latin American borders is significantly less than that of labour markets within the United States in two of the three indicators. These differences may suggest opportunities for efficiency gains from further labour market integration.     

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.     

Risk,Return and Performance of Latin America's Equity Markets, 1975-1995

Abstract

This paper examines the investment performance of Latin American equity markets from 1975 through mid-1995. Latin American equity markets have been among the most volatile in the world over the past twenty years. However, their low correlation with other markets has provided diversification benefits. These markets have low liquidity and are concentrated in a few securities. The currencies of Latin American markets have depreciated dramatically against the U.S. dollar. Nevertheless, the investment performance of these markets has been impressive: Their compound returns in U.S. dollar terms have exceeded those of the U.S. and of emerging markets in other regions of the globe.

Este trabajo examina el desempeño de los mercados accionarios latinoamericanos desde diciembre de 1975 hasta junio de 1995. Estos mercados han tenido una de las volatilidades mas altas del mundo durante los veinte años examinados, sin emhargo sus bajas correlaciones con otros mercados han resultado en beneficios de diversificatión. En cada mercado el valor de la unidad monetaria local ha caido dramáticamente con respecto al dólar de Estados Unidos y también han existido problemas de liquidez. A pesar de ésto, el desempeño de los mercados accionarios en la región ha sido impresionante y sus rendimientos compuestos han superado los de los mercados de Estados Unidos y otras economías emergentes.

Esse trabalho examina o desempenho do investimento no mercado de aç[otilde]es da America Latina entre 1975 até os meados de 1995. Os mercados de aç[otilde]es latino-americanos encontram se entre os mais voláteis do mundo nos últimos 20 anos. Entretanto, a sua baixa correlação com outros mercados apresentou beneficios para a diversificação. Esses mercados apresentam baixa liquidez e são concentrados em umas poucas aç[otilde]es. As moedas dos mercados Latinoamericanos depreciaram dramaticamente contra o dólar americano. Entretanto, o desempenho de investimentos nesses mercados tem sido impressionantes: o retorno composto em dólares americanos excederam os dos Estados Unidos e os dos mercados emergentes em outras partes do mundo.     

Sino-Latin American Trade, Closer Tie

The financial crisis has provided a new opportunity for Sino-Latin American cooperation. In the past few years, China＇s economic ties to Latin America have witnessed comparable growth： from 1993 to 2003, China＇s trade with Latin America increased by 600 percent. Chinese president Hu Jintao set the mark for increasing trade with Latin America to US$100 billion by 2010, a goal easily met when trade surged to US$102.6 billion in 2007, which represents a 42.6 percent increase from 2006. In the first nine months of 2008, it was already up 52 percent from the same period 2007. It is widely believed that China and Latin America share the same pictures in the field of economic development, and increased relations between the two sides are mutually beneficial. Commented on the just-issued Chinese policy paper on Latin America and the Caribbean Region, the first on this topic, Jiang Shixue, vice president of the Chinese Association for Latin American Studies said the document is a clear indication that China is willing to promote Sino-Latin America ties, which will be focused on economics and trade.     

Internationalization and value orientation of entrepreneurial ventures—a Latin American perspective

Entrepreneurial ventures from Latin American emerging economies are underexplored on the current international entrepreneurship literature. This paper is aimed to contribute empirical evidence on entrepreneurial ventures from Latin American emerging economies and their internationalization and value orientation. Based on the 2009 Global Entrepreneurship Monitor data, we found that institutional voids on Latin American emerging economies were a double-edge sword: on one hand, inefficient and unregulated markets make ventures from Latin American emerging economies encounter the liability of their country of origin; on the other hand, less active governments and absence of influential NGOs alternatively trigger more social entrepreneurial opportunities, with some of them across the national border. Some entrepreneurs from Latin American emerging economies have been active in exploiting those international social opportunities. International social entrepreneurship can be regarded as an alternative solution to social problems which governments, NGOs, or for-profit ventures fail to tackle on Latin American emerging economies.     

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.     

Common Market—A step towards unification

The focus of the Conference of the Organisation of American States held in April 1967 at Punta del Este was the efforts to achieve the economic integration of South America. The most important item in the “Declaration by the American Presidents” at Punta del Este is the projected creation of a Common Market for the whole of Latin America. The Latin American Free Trade Association (ALALC) and the Central American Common Market (MCC) are to be the foundation for economic integration over a vast area. The statement put out by the Punta del Este Conference is, however, only the first step along the road towards the economic consolidation of South America. It is now up to the Latin American countries to bring true these oft-repeated protestations of Latin American solidarity. All the Latin American countries will have to co-operate purposefully to tackle the tasks ahead of them and they will need the support of the larger industrial nations, particularly the United States. Nothing less than economic collaboration between the countries of the american sub-continent, forgetting all national rivalries, would enable Simón Bolivar's dream of a strong and united Latin America to become a practicable reality. The following contribution discusses the ways and means of Latin American integration, the results achieved hitherio and the prospects for a comprehensive unification of South America—including political unification.     

Performance and Competitiveness of Latin American Cities: The Human Capital Case

Abstract

Besides the human capital, elements that make Latin American cities competitive include, for instance, their culture or financial maturity. However, the most important challenge for Latin American cities to succeed is how to manage all these variables. The purpose of this study is to identify the contribution of human capital and its relationships and impacts on the performance of Latin American cities. This quantitative, non-experimental, explanatory, correlational, and cross-sectional study observes factors that increase city competitiveness and develop their relationships. The study is based on the Economist Intelligence Unit database of 2012, in which 120 cities were evaluated, particularly contrasting Latin American cities with the top cities in the world and their characteristics. Urban competitiveness in Latin American cities can be predicted partially on the presence of Human Capital. In some instances, we found positive relationships between human capital and the characteristics considered in a city’s performance.     

Informality,tariffs and wealth

This article analyzes the interaction between changes in tariff protection, informality, inequality and aggregate income. First, we describe some new empirical evidence on informality, the formal/informal wage gap and trade openness in Latin American countries. Then we present a simple model characterized by three (empirically based) assumptions: (1) agents consume both formal and informal goods; (2) the government uses tariff revenues to purchase formal goods; (3) informality is a voluntary phenomenon. The model predicts that tariff reduction increases informality and wage inequality and that the maximization of income requires a positive level of tariff protection. The model's results are shown to be consistent with the empirical evidence concerning Latin American countries.     

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.     

The advent of private equity in Latin America

As an investment banker in London, the author witnessed the massive run-up in Latin American public equities during the early 1990s and began to consider the potential for adapting the European model of development capital to Latin America. The author and a small number of other investors began looking beyond the public equity boom, recognizing that the biggest returns had already been made by local entrepreneurs who had entered the market early. Following in the steps of the local entrepreneurs who had been investing in and turning around local companies for years, the author and other investors established investment funds and sought out privately owned Latin American companies that were either poorly capitalized or mismanaged. In a matter of four years, foreign and indigenous pools of funds dedicated to private, unquoted investments in Latin America has grown from near zero to an estimated $1.5 billion. And the pool continues to grow. The author tracks this investment phenomenon and assesses the prospects for these and future Latin American funds, in light of the economic and political stabilization of many Latin American countries and the ambitious infrastructure development programs across the region.     

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.     

Do economic freedom,business experience,and firm size affect internationalization speed? Evidence from small firms in Chile,Colombia, and Peru

Journal of International Entrepreneurship - This paper focuses on SMEs from the Latin American region and aims to build on existing literature on the emergence of the institution-based view in...     

Towards the Latin American Regiocentric Corporation

Abstract

Globalization and regionalism are emerging with force in Latin America and a new breed of Latin American corporations is making its mark in response to this new reality. These corporations are exploiting technology, low costs, and their in-depth understanding of the region's intricate cultural fabric to compete with global firms and become regional players in niches neglected by these powerful rivals. Using the integration-responsiveness framework, this paper describes the evolution and characteristics of regional strategies in selected Latin American companies and speculates on the potential reversal of these strategies as Latin American economies attempt to insulate themselves from the recent international financial crisis.     

Friedman versus Keynes in Latin America

In a number of Latin American countries, the influence of John Maynard Keynes and his Latin American proponent Raúl Prebisch, was forced during the seventies to give way to the liberal-monetarist principles of Milton Friedman. What advantages and disadvantages have ensued from this change of course? Do Friedman's theories point a way out of Latin America's present economic and social problems?     

EEC trade policies and Latin American export performance

Since the beginning of the seventies Latin American exporters have been losing ground to their Asian competitors on the EEC as well as on the world market. While Latin American authorities tend to put the blame on external factors, and among them not least on the allegedly protectionist and descriminating EEC trade policy, Dr. Langhammer shows that internal, “home-made” policy shortcomings have hampered Latin American exports at least to the same extent.     

Comprehending the outward FDI from Latin America and OCED: A comparative perspective

This study examines the determinants of outward foreign direct investment (FDI) from Latin American countries and compares it with their OECD counterparts. Our analysis is based on a sample of 45 countries, 13 from Latin America and 32 from the OECD, over the period 2001–2012. We find that the outward FDI from Latin America is more likely to be located in geographically proximate countries and in countries with similar culture and language than that from their OECD counterparts. We also show that Latin American outward FDI is less likely to be resource seeking. This presumably reflects the rich natural resource endowments and agricultural potential in major Latin American countries. Further, outward FDI from Latin America is more likely to be concentrated in countries with a similar corruption environment than that from their OECD counterparts. This might indicate a broadly similar nature of corruption across Latin America due to shared cultural, political and economic legacies.