...The automobile industry is growing rapidly with the introduction of newer technologies and car models. Latin America is quite a preferable location for auto manufacturers. Countries like Brazil, Argentina and Mexico are well known for manufacturing automobiles. As a Chinese automobile company who wants to set up their operation in Latin America, several major factors must be considered while selecting the country. Some of the factors which are considered when deciding on which country to invest are as follows: A. Infrastructure: Latin America lags behind in terms of infrastructure. This is a disadvantage for Latin America since it has a negative implication on its production and foreign direct investment. The proportion of paved roads in Latin America is comparatively low. i) Brazil: Brazil, the biggest economy in Latin America is ranked 104 in 2014 according to the “Global Competitiveness Report” by the World Economic Forum. This significantly increases the set up costs for new firms. ii) Argentina: Argentina lags even further behind Brazil in terms of infrastructure according to “Global Competitiveness Report” by the World Economic Forum published in 2014. This makes Argentina unsuitable for setting up new subsidiary. iii) Mexico: Mexico is ranked 73rd in the “Global Competitiveness Report” published in 2014, by the World Economic Forum. This shows Mexico is better in terms of infrastructure than Brazil and Argentina. Hence, Mexico will be the better choice...
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...encapsulates many of the ideals and themes that have been examined in the Human Rights in Latin America Class. These themes contribute to the frantic and dangerous dynamic that many journalist face in Mexico on a regular basis. The idea of borders and corruption are physical ideas that are not regularly seen with a person’s eyes, but are rather recognized by their mind. Death is another theme, though unlike the previous two, present a real, noticeable physical response. Born out of these physical themes, the idea centered on the motivation of Fear and Resilience is found. These two metaphysical thoughts are encouraged and enlightened by the other physical themes associated with Human Rights. However, before diving into a...
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...main issue Corruption, bribery and other unethical behaviours are still one of the major concerns in International Business, influencing not only the companies’ performance in local markets, but also mining competition and the welfare of the countries in which this practices are considered part of the culture as such. In particular for very large international companies, with subsidiaries spread all over the world, to keep track of unethical practices may be difficult, as to maintain the integrity of the corporate culture in all the people involved in the organization, from the employees, sales managers and top management. Every country has a different culture, and every culture has its own level of tolerance against corruption. Since bad practices like bribery are well ingrained both in the countries’ culture, as well in the companies’ culture, it is evident that changes do not happen over-night, and to draft an anti-bribery policy and post it in the office blackboard is not enough. The aim of this paper is to analyze several perspectives on the topic, taking the reader into the discussion by giving him/her pro and cons by analyzing a specific company and his cultural and managerial issues when facing a period of internationalization and internal changes. 1.2 Company profile Starnes-Brenner Machine tool company is an international company situated in Iowa city, United States, that owns a small-one man sales office in Latino, South America, headed by a very...
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...relative economic standing when compared to other countries around the world. Several aspects make up what is a developing country. These types of countries usually have a relatively lower standard of living, lower economic growth, weak and sometimes corrupt governments, a wide gap between the wealthy and the poor, and a lower gross domestic product per capita. These developing economies can be found throughout the world, but are most common in Latin America, Africa, Asia, Russia and the South pacific. Most other regions are either developed economies, or are on their way to becoming one. This paper will analyze the country of Honduras. It will describe the reasons for it being a developing nation and the issues that cause or are caused by their poor economy. Background Honduras is considered part of Latin America, and more specifically Central America. Among the other six countries in Central America, Honduras ranks the 2nd poorest and has a GDp per capita of $4,700. Nicaragua is the poorest country in Central America and has a GDp per capita of $4,500, only $200 less per capita than Honduras. Apart from the fact that Honduras is a less developed country, it is known for its beautiful beaches and nice weather. It lies approximately 1000 miles southwest of Miami and its Northeastern coast is nearly surrounded by the Caribbean Sea. Inward from the coast, the country changes to have roughly 48,200 square miles of mountainous regions. Government Economic...
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...methamphetamine’s route toward Asia. “TOC exacerbates corruption and undermines the rule of law, democratic processes, and transparent business practices in several African states that already suffer from weak institutions.” (n.d.). This is giving the Transnational Organized Crime groups the ability to operate in West Africa. Corruption, open borders, location, and weak law enforcement allows these areas to become narco-states. For example, Guinea-Bissau is very close to being unable to combat these organizations....
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...| case study | | | 17/02/2014 | Natura : Global Beauty Made in Brazil | | David Molina 11185093 | case study Natura : Global Beauty Made in Brazil | | | What are the key success factors in the cosmetics industry?We’re going to go with a step by step analysis, similar to a PEST analysis, in order to find the key factors in the cosmetic industry, especially in Brazil and according to the article.First, the political reforms in Brazil in the 1990s has led to a better openness of trade and investment from the global market. From 1995 to 2000, it has created a more decentralized and market-driven environment through the deregulation of state monopolies and prices, according to the WTO report of trade policies in Brazil in November 2000. It also explains the influence of better resource allocation and greater flexibility of the Brazilian market on the recovering from the financial crisis that lead to the floating of the real in 1999, and thus show an increasing resistance of the market.On the other side, the economic structure of Brazil was supporting the development of the cosmetic market. In 2005, it has 180 million of people which 83% were located in urban areas, which are targeted consumers for cosmetic products. Also there was a strong demand for cosmetic products in Brazil, the country being among the top ranked countries in term of sales. Before the 1990s, there was also a lack of international competition in Brazil, a few multinational were eager...
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...Populism is a political idea that has permeated Latin American countries since claiming independence from their Iberian colonizers. Populism is salient in Latin American politics, because of the deep ties that it has to the overarching poverty and corruption seen in this geo-political region. Largely so, populism has exacerbated socio-economic issues for the common people of Latin America. Issues, including access, opportunity, sustainability, security and safety, pervade the push for politicians and governments to surrender to populist agendas. Campaigning on populism is an effective way for questionable politicians and individuals to get elected into government, especially so when they are able to convince their constituents that they can...
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...use of petrodollars, and loan pushers, contributed to the growth of external debts in Latin America between 1960 and 1990. Additionally, floating and rising interest rates, and the rise of official corruption only exacerbated the debt crisis they were facing. Latin America had an inward-looking import substitution industrialization policy, neglecting exports, which led to inferior substitutes that were more expensive than products in the global market. In addition, the agrarian structure in Latin America and their under-utilization of resources led to higher manufacturing costs, large scale migration to urban areas, and urban unemployment. The build-up of inefficiency resulting from import substitution industrialization, as well as the problems caused by the agrarian structure in Latin America increased the appeal of looking outward for assistance. By the mid 1970s, the Organization of the Petroleum Exporting Countries had successfully organized their control on exports which led to a phenomenal rise in the price of crude oil. Oil shocks such as the one experienced in 1973 when OPEC quadrupled the price of crude oil meant that Latin America would need more money to satisfy its consumption. On the other hand, the OPEC countries had an abundance of petrodollars that they sought to invest. This lead to loan pushing, a technique used by international banks to sell loans to the Latin American and other governments in much the same way that a car salesman would sell a...
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...New Factory Darlene Richardson Global Business Management Jason Britt South University Online October 6, 2015 Opening a New Factory Differences in the Political Economies During the cold war the United States had several rivals which included Chile. Whereas, in Honduras the United States bases were provided so that Nicaraguan rebels could be funded and trained by the U.S. Mexico has never been a major confliction but there have never tried to be a key player when it comes to be a go between with the other nations of Latin America. Recently, the countries of Honduras, Mexico and Chile have become encouraging for the business industry from the U.S. because the political environment has changed. Authorities from the rightwing have lobbied for closer relations with the U.S. Because of such relations it has caused Mexico to become the third largest trading associate of the U. S. However, Mexico and Honduras are dealing with a high crime rate when compared to Chile and Honduras and Mexico have had cases of political intimidation (Kingstone, 2013). The Cultural Barriers Tradition and family values are highly regarded in the Mexican culture. For example, working outside the home in a commercial organization is not as important to women then working in their homes. The children remain at home longer then in the U.S particularly the families that have middle and high incomes. The culture in Honduras has been integrated...
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...What is the success rate of revolution in Latin America that have been able to change the way their government functions, and how its people have been treated? My answer would be less than one percent and that is being very generous. The success rate of would mean more to the statistics if more Latin American nations that did protest and rebel against their oppressors. Neil Harvey did field research in Chiapas for around ten years, of that he was able to gain insight on, “The Zapatistas not only exposed the gaps between liberal ideals and daily reality for most Mexicans; but opened the possibility for radical understanding of citizenship and democracy” (Page 12). This then explains the exploitations felt by the Zapatista organization, those...
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...Facultad de Economia y NegociosEscuela de Ingenieria Comercial | Economic development in Panama between 1995-2010 | Taller de Economía Empresarial | | José Venegas Rojas | | Professor: John Cobin Santiago, Chile 2013 I. - Introduction. The controlling purpose of this paper is to review the academic literature about the economic development of Panama between 1995-2010 in Panama City. Panama is among the twenty economies which have grown the most in the past ten years, according to the World Bank, which curiously matches giving ones the administration of the Panama Canal by the United States to Panama in 1999. Most of the buildings in Panama City were built around 2000 and in order to observe this change, the financial statements of the country when it still belonged to the United States, will be analyzed so that it can be possible to consider a factor in the economic development in this country. On December 31, 1999, at midday the Panama Republic took administrative control of the Panama Canal after a long process of negotiation which started in 1977 with the signing of the Treaty between the President Jimmy Carter from the United States and the Panama president Omar Torrijos. This Treaty stated that it was an important issue that Panama guaranteed the neutrality of the Canal. This step of command happened after almost eighty-five years of diplomatic negotiations between the US and Panama. Many Panamanians considered the administration of the Panama...
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...SUMMARY You may find certain aspects of Brazilian culture to be strange and quite different from what you are used to in Canada. One of the major differences is that Brazil is a collectivistic culture as measured on Hofstede’s Individualism Index, in contrast to Canada’s individualistic culture (Hofstede, 2014). Brazil’s collectivist nature will have many impacts on your daily interactions, including the Brazilian importance of family, which will often be place above work priorities (Training, 2012). Brazil is also different in its communication style, which tends to be more informal and indirect than Canada’s formal and direct style. Brazil is also considered a high-context culture, therefore it is important to pay attention to what is said, how it is said, and what is not said (Suderman, 2008). Another major aspect of Brazilian culture is the importance of building relationships before commencing business. Brazilians expect to get to know their business contacts through multiple meetings, in order to establish trust, and hopefully a friendship (DiPaolo, 2006). This process may take some time as it illustrates Brazil’s Polychronic orientation, which is more relaxed (slower) in nature and where the prevailing attitude is that “things will get done in their own time” (Suderman, 2008). Brazil is also very comfortable with inequality as evidenced by their high score on Hofstede’s Power Distance Index (Hofstede, 2014). As a manager in Brazil you will be expected to take absolute...
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...responsibly than the major companies who rely mainly on exports. Most CSR initiative in Peru seems to come from international organizations and intermediaries; the Swiss AVINA, Kellog, Interamerican, and Ford Foundations are all examples of the attempt to raise CSR awareness. Benefits of CSR Peru’s rapid economic expansion has helped to reduce the national poverty rate by almost 15%, but 44.5% of the population still live below the poverty line. Not all Peruvians share the benefits of the country’s ever-increasing prosperity, while general disregard from the government and lack of infrastructure inhibit growth in Peru’s less developed regions. In 2007, Peru’s real GDP growth was 8.3%, the highest in Latin America. In 2008, it rose to an astounding 9.8%, not only the highest in Latin America, but in the world. Despite its recent success,...
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...country in the world, in terms of both population and area, and the largest country in the Latin America and South America region. With a population of more than 200 million people, Brazil ranks seventh in the list of the largest economies in the world and is home to a variety of natural resources, natural environments and wildlife.. Brazil is one of the fastest growing markets in South America and the automaker wants to capitalize on the growth with its products. The Brazilian market is very similar to India and Bajaj motorcycles will surely see a demand in the commuter segment space. Brazil, which is hosting the World Cup this year, is slated to host the next Olympic Games in 2016. It has an estimated market of 2 million two-wheelers per annum. “Brazil is not only the largest market in Latin America but also technically different from other markets as it uses ethanol. Initially the company may bring in products from India or utilize the Columbian plant for Brazil. While eventually it plans to build a manufacturing facility in Brazil, Munjal did not give any specific timeline for doing so. “Besides we are also looking for a partner in Brazil,” he added. Cultural, Administrative, Geographic and Economic Analysis of Brazil Culture * Power Distance * Represents how employees with less power view power as being equal or not equal * Brazil ranks average with the majority of Latin American countries * Individualism/Collectivism * Ranked 38 indicating that Brazil...
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...The international drug trade from Latin American states is having an impact on a global scale. The trafficking of drugs along with corruptness and murder is an international conflict that is being fought daily. There are many aspects of the drug war from Mexico and other Latin American states which have effects on United States policy as well as policies from other countries that participate in the global suppression of illegal drugs. It can be hard to differentiate between conflict and issue in regards to Latin America’s drug war and International Relations. The Mexican drug war is a global issue because it interferes with the states ability to collaborate and form policy in order to address the issues between international borders. Conflict arises because certain states want to resolve the situation and are willing to do what is necessary to do so. While drug-related violence in Mexico receives considerable attention, the Northern Triangle of Latin America is far worse. Venezuela has emerged as a major departure point for cocaine trafficked to Europe. Between 2006 and 2008 over half of all detected maritime shipments of cocaine to Europe came from Venezuela. (Crime 2010) These ports in Latin America have had an impact on the cities in the Bahamas as well with the drug cartels exporting their drugs quicker to the surrounding countries; they use the ports of the Caribbean to refuel while on the way to America. The waters of the Caribbean islands are patrolled by navies from...
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