This document summarizes considerations for public incentives in Latin America. It notes that as labor costs have increased elsewhere, many businesses have focused on Latin America for investment due to favorable tax regimes, incentives, and cost effectiveness. Specifically, it highlights that Latin America has a large population and economy, common languages of Spanish and Portuguese, communication efficiencies due to aligned time zones with North America, lower labor costs but still skilled workers, and geographic diversification benefits. The document advises businesses evaluating expansion in Latin America to research available public incentives from federal, state and local governments to potentially tip decisions and get the best package. It recommends keeping incentive negotiations confidential for competitive leverage.
This document provides an overview of international business. It defines international business as any business activity that crosses national borders. The scope of international business is broad, as it involves operating in foreign environments with uncertain rules and ambiguous regulations. Conducting international business requires understanding factors unique to foreign markets. A firm's guiding principles should have a global perspective to help managers identify opportunities outside their domestic economy. The document outlines various strategic choices firms face when internationalizing, such as decisions around marketing, sourcing, management, and public affairs.
Introduction of strategy,Levels,Meaning of International Business, Multinational corporations,advantages of Home country &host country, Challenges of Internationalbusiness
This document discusses various aspects of globalization and international business. It describes how components of manufactured goods often come from multiple countries. It also defines key terms like multinational corporations, transnational corporations, and various regional trade agreements. It outlines challenges that global managers may face, such as currency fluctuations, cultural differences, intellectual property issues, and human rights concerns. It then discusses various methods for entering foreign markets and factors that contribute to success in global business.
The document summarizes several key topics related to world trade:
1) It outlines the main world institutions associated with world trade, including the International Monetary Fund, World Bank, World Trade Organization, and Organization for Economic Cooperation and Development.
2) It explores the main economic theories of world trade from comparative advantage to more modern theories.
3) It discusses the relevance of trade theories and barriers/regulations for multinational enterprises and companies seeking to engage in international trade.
The term globalization derives from the word globalize, which refers to the emergence of an international network of economic systems. Globalisation refers to rapid increase in the share of economic activity taking place across national borders. It goes beyond the international trade includes goods and services, delivered &sold & movement of capital.
Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, normally beginning with the steamship and the telegraph in the early to mid-1800s. With increased interactions between nation-states and individuals came the growth of international trade, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
International business refers to commercial transactions that cross national borders, including trade of goods, services and economic resources between two or more countries. A multinational enterprise conducts business operations in multiple countries. Companies engage in international business to expand sales into new markets, access resources like labor at lower costs, and minimize risks by diversifying beyond their domestic market. The goal is typically company growth or expansion through a global business strategy.
The document summarizes the topics of an international business presentation, including:
1) The importance of international business and how it benefits materials sourcing, global opportunities, and political relations.
2) How culture influences global business through consumer behavior, communication styles, and business practices.
3) How governments can help or hinder international business through various policies and political risks.
This document provides an overview of international business. It defines international business as any business activity that crosses national borders. The scope of international business is broad, as it involves operating in foreign environments with uncertain rules and ambiguous regulations. Conducting international business requires understanding factors unique to foreign markets. A firm's guiding principles should have a global perspective to help managers identify opportunities outside their domestic economy. The document outlines various strategic choices firms face when internationalizing, such as decisions around marketing, sourcing, management, and public affairs.
Introduction of strategy,Levels,Meaning of International Business, Multinational corporations,advantages of Home country &host country, Challenges of Internationalbusiness
This document discusses various aspects of globalization and international business. It describes how components of manufactured goods often come from multiple countries. It also defines key terms like multinational corporations, transnational corporations, and various regional trade agreements. It outlines challenges that global managers may face, such as currency fluctuations, cultural differences, intellectual property issues, and human rights concerns. It then discusses various methods for entering foreign markets and factors that contribute to success in global business.
The document summarizes several key topics related to world trade:
1) It outlines the main world institutions associated with world trade, including the International Monetary Fund, World Bank, World Trade Organization, and Organization for Economic Cooperation and Development.
2) It explores the main economic theories of world trade from comparative advantage to more modern theories.
3) It discusses the relevance of trade theories and barriers/regulations for multinational enterprises and companies seeking to engage in international trade.
The term globalization derives from the word globalize, which refers to the emergence of an international network of economic systems. Globalisation refers to rapid increase in the share of economic activity taking place across national borders. It goes beyond the international trade includes goods and services, delivered &sold & movement of capital.
Globalization or globalisation is the trend of increasing interaction between people or companies on a worldwide scale due to advances in transportation and communication technology, normally beginning with the steamship and the telegraph in the early to mid-1800s. With increased interactions between nation-states and individuals came the growth of international trade, ideas, and culture. Globalization is primarily an economic process of integration that has social and cultural aspects, but conflicts and diplomacy are also large parts of the history of globalization.
International business refers to commercial transactions that cross national borders, including trade of goods, services and economic resources between two or more countries. A multinational enterprise conducts business operations in multiple countries. Companies engage in international business to expand sales into new markets, access resources like labor at lower costs, and minimize risks by diversifying beyond their domestic market. The goal is typically company growth or expansion through a global business strategy.
The document summarizes the topics of an international business presentation, including:
1) The importance of international business and how it benefits materials sourcing, global opportunities, and political relations.
2) How culture influences global business through consumer behavior, communication styles, and business practices.
3) How governments can help or hinder international business through various policies and political risks.
International trade involves the purchase, sale or exchange of goods and services across national borders. It benefits countries by opening new business opportunities, providing greater product choices, and creating more jobs globally. Several theories attempt to explain why international trade occurs, such as absolute advantage, comparative advantage, and factor proportions theory. Nations tend to export goods that require resources they have in abundance and import goods that require scarcer resources. A country's competitiveness in an industry depends on factors like available resources, demand conditions, supporting industries, and business strategy.
The document discusses global management and multinational enterprises (MNEs). It defines MNEs as companies that engage in foreign direct investment and own value-adding activities in more than one country. MNEs are responsible for around 50% of world trade and finance. The document examines why MNEs expand internationally, including to seek resources, markets, efficiencies, and strategic assets. It introduces the Company-Country-Bargaining paradigm to explain the relationships between companies, countries, and their negotiations around issues like tariffs and investment incentives.
Atlantic Canada needs a clear strategy to increase global competitiveness and take advantage of opportunities in emerging markets. The region possesses strengths in sectors like energy, mining, and food that could benefit from growing trade with countries whose middle classes will demand resources to develop infrastructure. However, Atlantic Canada currently relies too heavily on trade with the U.S. and too few companies are internationally oriented. The region requires a coordinated strategy across public and private sectors to select champion industries and expand trade, especially to emerging economies in Asia, Latin America, and elsewhere.
World trade has significant implications for multinational enterprises (MNEs) and smaller companies. It provides opportunities for market expansion but also political, economic, and cultural challenges. MNEs must consider factors like local product regulations, profit regulations, cultural differences, and economic conditions when operating in foreign countries. Smaller companies also face these challenges when engaging in world trade and must strategically consider issues like local infrastructure and taxation policies. Cultural differences especially impact how MNEs structure relationships between headquarters and subsidiaries.
International Business Management - Lecture No 02Khurshid Swati
The document discusses various aspects of internationalization and globalization. It defines internationalization as businesses operating on a global scale and globalization as deepening interdependence among countries. Forms of internationalization mentioned include import/export, licensing, and franchising. Drivers of globalization include improved technology and transportation, as well as economic trends promoting free trade. Restraining forces include challenges like cultural and political differences between countries. The impacts of multinational companies on host countries are also summarized, including both potential benefits and problems.
International financial management involves managing finance in an international business environment through foreign currency exchange. The main objective is to maximize shareholder wealth. It includes functions like fund generation, deployment, and risk management of financing and investment decisions. Practitioners require knowledge of factors like exchange rates, interest rates, economic indicators, and political risks across countries. Common international business methods include licensing, franchising, subsidiaries and acquisitions, strategic alliances, and exporting.
The document discusses several frameworks for analyzing the balance of power between international companies and countries, including the ESP Paradigm, Diamond of Competitive Advantage, Stages of Growth Paradigm, and the C-C-B Paradigm. It also examines the bargaining relationship between companies and home/host countries and how this relationship has changed over three phases from the 1950s to present day. Finally, it outlines some of the policies host countries use regarding inward direct investment.
This document discusses transnational corporations (TNCs). It defines TNCs as systems of production composed of units located across countries that are centrally planned under a parent company. The evolution of TNCs was driven by factors like increasing production, competition, market saturation, technology, resource extraction, and lower labor costs in some countries. Early TNCs took the form of trusts, cartels, and holdings. TNCs can be classified by their activity, organizational structure, ownership, and type of integration (vertical, horizontal, conglomerate). While TNCs bring benefits like jobs, technology, and investment, they can also concentrate wealth, use capital-intensive techniques, and influence policies.
The document discusses foreign direct investment (FDI) and multinational corporations. It examines the article "FDI and Multinationals: Patterns, Impacts and Policies" by A.T. Tavares and S. Young. The document summarizes key points from the article, including the main drivers for firms to engage in FDI, such as accessing new markets or resources. It also classifies FDI based on factors like ownership structure and firm motives. The impacts of FDI from the perspective of host and home countries are outlined, noting concerns about national welfare as well as potential benefits from technology transfer and competitive pressures spurring efficiency.
This document provides an overview of key concepts in international business and globalization. It discusses how international business differs from domestic business through cross-border and cross-cultural exchanges that introduce additional risks. Reasons for why firms internationalize include seeking growth opportunities and higher profits. While global operations provide strategic benefits, effectively managing complexity across diverse markets can introduce a "globalization penalty" if firms struggle to adapt. Risk mitigation has become a top priority for multinational enterprises.
This presentation discusses the importance of Trade. The presentation will look at exports, imports, balance of trade, FIPA, Trade agreements and FDI.
This presentation is about educating people on the importance of having trade deals, but the right deals to support economic growth for a country.
GDP or Gross Domestic Product is the monetary value of all finished goods and services produced within a country's borders in a given period. It is calculated using the formula GDP=C+G+I+NX, where C is private consumption, G is government spending, I is investment, and NX is net exports. The document then provides information on projections for the global economy by 2050 and various terms related to international management such as global sourcing, global manager, and global business.
This document provides an overview of international financial management and multinational corporations (MNCs). It discusses how MNCs expand business across borders to access resources. The international financial environment and foreign exchange markets enable trade, investment, and financing between countries. MNCs have objectives like expanding globally and lowering costs. India is an attractive location for MNCs due to its large market, low labor costs, and manufacturing potential. The document outlines the structure, advantages, and constraints of MNCs and their valuation considering international cash flows and exchange rate risk.
The ‘C’ Factors: Countries, Currency, Competition, Countries in different stages of economic and political development and its relevance, Impact of currency and exchange rate fluctuations. Suggested remedies, Analyzing competition Industry analysis, Porters national diamond, Strategic models, Strategic positions, Strategic Intents-, loose bricks, layers of advantage, collaboration among competing firms, Changing the rules of engagement, Richard D Aveni’s hyper competition.
The report presents findings from the first regional survey of private equity and venture capital investment in Latin America. The survey collected data from 110 firms and provides comprehensive information on investment activity, fundraising, and exits in 2008. Key findings include $4.6 billion invested in 200 deals, $6.4 billion raised from local and global investors, and 56 exits totaling $2.6 billion. The report also analyzes investment trends and outlook in major Latin American markets and sectors poised to attract private capital in 2009 and beyond.
INTERNATIONAL BUSINESS - MG UNIVERSITY 3RD SEMESTER - FULL NOTESSooraj Krishnakumar
This document provides an overview of the modules covered in an International Business course. It discusses key topics such as the nature and dimensions of international business, the globalization process, international economic institutions, export/import procedures, foreign investment, and social and environmental issues in international business. The modules cover the international business environment, entry strategies, factors driving globalization, and challenges that companies face when operating globally.
E:\Notes Of M Com 2\Converted Pdf Notes\International Businessguesta42743
This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
This document provides an overview of international financial markets and monetary systems. It defines key terms related to capital markets, debt, equity, stocks, and bonds. It describes how national capital markets facilitate borrowing and lending within countries, and how international capital markets expand money supplies globally. The main components of international capital markets are international bond markets, international equity markets, and eurocurrency markets. Exchange rates are influenced by factors like weak/strong currencies and can affect business activities. Techniques for forecasting exchange rates include fundamental and technical analysis, but difficulties remain due to unexpected events and human errors.
This document provides an agenda for the 10th Latin America Treasury & Finance Conference in 2013. The conference will take place from May 6-8, 2013 in Miami, Florida and feature five tracks on the economy, doing business, best practices, connectivity, and trends in Latin America. Some of the topics to be discussed include the economic outlook and opportunities in Latin America, strategies for multilatinas expanding globally, urbanization and infrastructure development, supply chain finance, priorities for treasury professionals, and building regional treasury models. The agenda outlines presentations and panel discussions across the three day event focused on providing insights and practical strategies for treasury and finance professionals operating in Latin America.
International trade involves the purchase, sale or exchange of goods and services across national borders. It benefits countries by opening new business opportunities, providing greater product choices, and creating more jobs globally. Several theories attempt to explain why international trade occurs, such as absolute advantage, comparative advantage, and factor proportions theory. Nations tend to export goods that require resources they have in abundance and import goods that require scarcer resources. A country's competitiveness in an industry depends on factors like available resources, demand conditions, supporting industries, and business strategy.
The document discusses global management and multinational enterprises (MNEs). It defines MNEs as companies that engage in foreign direct investment and own value-adding activities in more than one country. MNEs are responsible for around 50% of world trade and finance. The document examines why MNEs expand internationally, including to seek resources, markets, efficiencies, and strategic assets. It introduces the Company-Country-Bargaining paradigm to explain the relationships between companies, countries, and their negotiations around issues like tariffs and investment incentives.
Atlantic Canada needs a clear strategy to increase global competitiveness and take advantage of opportunities in emerging markets. The region possesses strengths in sectors like energy, mining, and food that could benefit from growing trade with countries whose middle classes will demand resources to develop infrastructure. However, Atlantic Canada currently relies too heavily on trade with the U.S. and too few companies are internationally oriented. The region requires a coordinated strategy across public and private sectors to select champion industries and expand trade, especially to emerging economies in Asia, Latin America, and elsewhere.
World trade has significant implications for multinational enterprises (MNEs) and smaller companies. It provides opportunities for market expansion but also political, economic, and cultural challenges. MNEs must consider factors like local product regulations, profit regulations, cultural differences, and economic conditions when operating in foreign countries. Smaller companies also face these challenges when engaging in world trade and must strategically consider issues like local infrastructure and taxation policies. Cultural differences especially impact how MNEs structure relationships between headquarters and subsidiaries.
International Business Management - Lecture No 02Khurshid Swati
The document discusses various aspects of internationalization and globalization. It defines internationalization as businesses operating on a global scale and globalization as deepening interdependence among countries. Forms of internationalization mentioned include import/export, licensing, and franchising. Drivers of globalization include improved technology and transportation, as well as economic trends promoting free trade. Restraining forces include challenges like cultural and political differences between countries. The impacts of multinational companies on host countries are also summarized, including both potential benefits and problems.
International financial management involves managing finance in an international business environment through foreign currency exchange. The main objective is to maximize shareholder wealth. It includes functions like fund generation, deployment, and risk management of financing and investment decisions. Practitioners require knowledge of factors like exchange rates, interest rates, economic indicators, and political risks across countries. Common international business methods include licensing, franchising, subsidiaries and acquisitions, strategic alliances, and exporting.
The document discusses several frameworks for analyzing the balance of power between international companies and countries, including the ESP Paradigm, Diamond of Competitive Advantage, Stages of Growth Paradigm, and the C-C-B Paradigm. It also examines the bargaining relationship between companies and home/host countries and how this relationship has changed over three phases from the 1950s to present day. Finally, it outlines some of the policies host countries use regarding inward direct investment.
This document discusses transnational corporations (TNCs). It defines TNCs as systems of production composed of units located across countries that are centrally planned under a parent company. The evolution of TNCs was driven by factors like increasing production, competition, market saturation, technology, resource extraction, and lower labor costs in some countries. Early TNCs took the form of trusts, cartels, and holdings. TNCs can be classified by their activity, organizational structure, ownership, and type of integration (vertical, horizontal, conglomerate). While TNCs bring benefits like jobs, technology, and investment, they can also concentrate wealth, use capital-intensive techniques, and influence policies.
The document discusses foreign direct investment (FDI) and multinational corporations. It examines the article "FDI and Multinationals: Patterns, Impacts and Policies" by A.T. Tavares and S. Young. The document summarizes key points from the article, including the main drivers for firms to engage in FDI, such as accessing new markets or resources. It also classifies FDI based on factors like ownership structure and firm motives. The impacts of FDI from the perspective of host and home countries are outlined, noting concerns about national welfare as well as potential benefits from technology transfer and competitive pressures spurring efficiency.
This document provides an overview of key concepts in international business and globalization. It discusses how international business differs from domestic business through cross-border and cross-cultural exchanges that introduce additional risks. Reasons for why firms internationalize include seeking growth opportunities and higher profits. While global operations provide strategic benefits, effectively managing complexity across diverse markets can introduce a "globalization penalty" if firms struggle to adapt. Risk mitigation has become a top priority for multinational enterprises.
This presentation discusses the importance of Trade. The presentation will look at exports, imports, balance of trade, FIPA, Trade agreements and FDI.
This presentation is about educating people on the importance of having trade deals, but the right deals to support economic growth for a country.
GDP or Gross Domestic Product is the monetary value of all finished goods and services produced within a country's borders in a given period. It is calculated using the formula GDP=C+G+I+NX, where C is private consumption, G is government spending, I is investment, and NX is net exports. The document then provides information on projections for the global economy by 2050 and various terms related to international management such as global sourcing, global manager, and global business.
This document provides an overview of international financial management and multinational corporations (MNCs). It discusses how MNCs expand business across borders to access resources. The international financial environment and foreign exchange markets enable trade, investment, and financing between countries. MNCs have objectives like expanding globally and lowering costs. India is an attractive location for MNCs due to its large market, low labor costs, and manufacturing potential. The document outlines the structure, advantages, and constraints of MNCs and their valuation considering international cash flows and exchange rate risk.
The ‘C’ Factors: Countries, Currency, Competition, Countries in different stages of economic and political development and its relevance, Impact of currency and exchange rate fluctuations. Suggested remedies, Analyzing competition Industry analysis, Porters national diamond, Strategic models, Strategic positions, Strategic Intents-, loose bricks, layers of advantage, collaboration among competing firms, Changing the rules of engagement, Richard D Aveni’s hyper competition.
The report presents findings from the first regional survey of private equity and venture capital investment in Latin America. The survey collected data from 110 firms and provides comprehensive information on investment activity, fundraising, and exits in 2008. Key findings include $4.6 billion invested in 200 deals, $6.4 billion raised from local and global investors, and 56 exits totaling $2.6 billion. The report also analyzes investment trends and outlook in major Latin American markets and sectors poised to attract private capital in 2009 and beyond.
INTERNATIONAL BUSINESS - MG UNIVERSITY 3RD SEMESTER - FULL NOTESSooraj Krishnakumar
This document provides an overview of the modules covered in an International Business course. It discusses key topics such as the nature and dimensions of international business, the globalization process, international economic institutions, export/import procedures, foreign investment, and social and environmental issues in international business. The modules cover the international business environment, entry strategies, factors driving globalization, and challenges that companies face when operating globally.
E:\Notes Of M Com 2\Converted Pdf Notes\International Businessguesta42743
This document provides an overview of international business. It defines international business as commercial transactions between two countries. It discusses why companies engage in international business, including expanding sales, acquiring resources, diversifying sources of sales/supplies, and minimizing competitive risk. Recent growth in international business is due to expansion of technology, liberalization of trade barriers, development of supporting services, and increased global competition. There are various modes of international business, including merchandise exports/imports, service exports/imports, foreign direct investment, and portfolio investment.
This document provides an overview of international financial markets and monetary systems. It defines key terms related to capital markets, debt, equity, stocks, and bonds. It describes how national capital markets facilitate borrowing and lending within countries, and how international capital markets expand money supplies globally. The main components of international capital markets are international bond markets, international equity markets, and eurocurrency markets. Exchange rates are influenced by factors like weak/strong currencies and can affect business activities. Techniques for forecasting exchange rates include fundamental and technical analysis, but difficulties remain due to unexpected events and human errors.
This document provides an agenda for the 10th Latin America Treasury & Finance Conference in 2013. The conference will take place from May 6-8, 2013 in Miami, Florida and feature five tracks on the economy, doing business, best practices, connectivity, and trends in Latin America. Some of the topics to be discussed include the economic outlook and opportunities in Latin America, strategies for multilatinas expanding globally, urbanization and infrastructure development, supply chain finance, priorities for treasury professionals, and building regional treasury models. The agenda outlines presentations and panel discussions across the three day event focused on providing insights and practical strategies for treasury and finance professionals operating in Latin America.
Latin America is in an excellent position to lead the global economic recovery. The expectations and opportunities for foreign investment are growing and turning this continent into an exciting place to start a business. Some of the best business opportunities are now in Latin America; with lots to offer, attractive incentives for new companies to invest, an abundance of natural resources and good human talent. For these reasons and more, LATAM is a good business option.
The document discusses Canada's slowing economic growth and identifies several contributing factors, including global economic difficulties, geopolitical events, and automation. It analyzes GDP forecasts, growth rates, and deficits across various economies. Specific attention is given to analyzing GDP and employment data in Canada, and factors impacting key industries like housing, exports, and retail. A variety of policy approaches are discussed to potentially address challenges and support stronger growth, such as reforms to education, immigration, infrastructure investment, and trade agreements.
The Latin Trade Group held its annual Latin Trade Symposium and BRAVO Business Awards conference, which brought together over 600 influential business and government leaders from Latin America and other regions. The one-day event focused on the need for greater investment in innovation in the Americas to drive long-term prosperity. Global thought leaders shared insights on topics like navigating economic uncertainty, strategies for sustained growth, and how innovation can lead to success. Several awards were also given to recognize leaders demonstrating excellence and achievement across Latin America.
HP is considering expanding into either the Argentine or Colombian technology market. While both present opportunities for growth, Colombia may be the better option. Argentina has a larger population and economy, but Colombia has more stable economic and political conditions. Both markets are competitive, so HP will need a strong strategy. Colombia has clearer regulatory processes than Argentina. Overall, while both markets offer potential, Colombia appears to be the better environment for HP to invest in due to its greater stability and predictability.
This document summarizes opportunities and challenges for business in Latin America. It notes that Latin America has high GDP growth rates and is a major trading partner and commodity producer. While there are challenges like infrastructure and nationalism, opportunities exist in foreign direct investment, labor, and key projects in countries like Colombia, Panama, and Peru. The document provides an overview of taxation, regulations on getting money in and out, and arbitration in Latin America. It also lists contact information for lawyers at Holland & Knight who specialize in the region.
This document discusses leveraged buyouts (LBOs) and how high-ratio asset-based loans can help finance them. It outlines the appeal of LBOs, including high potential returns from nominal equity investments. Finding an LBO opportunity and financing it is difficult. Typically financing includes an operating line of credit, term facility, and subordinated debt. A high-ratio asset-based loan can bridge the gap between the term lender and subordinated debt by providing a higher lending ratio against assets. This helps equity investors complete transactions without expensive venture capital. The document contrasts high-ratio asset-based lending with conventional asset-based cash flow lending.
Atlantic Canadian companies struggle to access capital at all stages of growth. While some firms have seen success by attracting early investors, the region as a whole receives a disproportionately small amount of venture capital funding compared to its population. There is also a lack of public listings and collaboration between provincial efforts. New approaches are needed, including a harmonized regional tax credit, collaboration between banks and lending agencies, and the creation of an advocacy organization to improve the business environment across Atlantic Canada and help startups access funding.
Question 1=Looking Back Please respond to the followingFocu.docxteofilapeerless
The document discusses several topics related to international trade learned during a course:
1) The most surprising thing learned was the extensive resources available to guide import/export operations, such as information on the BIS website.
2) Key learnings around security and compliance included the important role of the CBP, importance of documentation, and programs like C-TPAT.
3) Gaps in trade policy include a lack of consideration for cultural/political factors between trading nations, which can disrupt business operations. The recommendation is for policies addressing these diplomatic aspects.
4) Technology could help address gaps at CBP by reducing human error and increasing efficiency.
E-commerce in Latin America: Maximising equitable growth and the potential of...FairTechInstitute
This white paper addresses the regional e-commerce landscape for Latin America. It sheds light on current trends and opportunities, looks at long-standing challenges and includes policy considerations that policymakers should address which would help the region maintain a balanced regulatory framework for online marketplaces.
The report was presented by Access Partnership during the online event, “E-commerce in Latin America: Maximising equitable growth and the potential of retail post-Covid-19”, which took place on 10 December 2021.
Latin America is experiencing a resurgence of left-leaning politics, with several countries electing leftist presidents in recent years, including Gabriel Boric in Chile, Pedro Castillo in Peru, and Gustavo Petro in Colombia. However, the region also still has right-leaning and centrist governments. Poverty and inequality remain high issues in Latin America. While the middle class has grown, its growth has stagnated in recent years. The COVID-19 pandemic worsened poverty and inequality in most Latin American countries. Looking ahead, Brazil's upcoming election could further impact the region's political landscape.
Selecting a Sourcing Location in Latin AmericaNeo Group Inc
This document discusses considerations for choosing the right location for outsourcing. It provides an overview of the Nearshore Executive Alliance and Neo Group, as well as the agenda which includes key location selection considerations, perspectives on the Latin America landscape, and addressing location risks. It then discusses various Latin American countries as outsourcing locations, comparing factors like industry development, salaries, talent pools, free trade zones, and geopolitical risks. The conclusion emphasizes understanding demand and supply factors such as scale needs, risk tolerance, and total return on investment when evaluating locations.
Randall Haaff has over 20 years of experience in credit card issuing and merchant services. He has held leadership roles at several large companies, including Vice President roles at CNH Capital and Fifth Third Bancorp where he drove growth through new product development, sales realignment, and process improvements. More recently, he was the Manager of Business Analysis for GE Capital in Europe, where he identified and evaluated acquisition opportunities.
Mexico´s Hybrid Virtual Captive Model Feb 17Loren Moss
The documents discuss the hybrid virtual captive model, which allows global outsourcing firms to set up nearshore delivery centers while avoiding the challenges of directly operating in a new country. Under this model, an administrator in the host country handles local operations on behalf of the outsourcer. Mexico's hybrid virtual captive model provides tax and regulatory benefits. It allows outsourcers flexibility to eventually take over operations or withdraw. This model provides the advantages of nearshoring without the risks of directly expanding into a new market. Selecting the right administrator partner is critical to the success of this model.
Doing business in Canada: Where to Play and How to Win? Globalupside1
Watch leaders from Global Upside, Boast Capital and provincial representative from the Canadian government as they explore Canada’s accounting, HR, payroll and regulatory “must knows”. For more info contact us at: info@globalupside.com
This document is the 4th anniversary assessment report from the Joint Foreign Chambers of the Philippines (JFC-PBG). Some key points:
- It provides an overview and assessment of the Philippine economy and business environment from 2014.
- It highlights priority issues for the Philippine government including achieving inclusive growth, accelerating infrastructure development, and ensuring energy security and price competitiveness.
- The report contains detailed assessments of various sectors of the Philippine economy such as agriculture, BPO, manufacturing, and tourism. It also assesses cross-cutting issues like the policy and investment environment.
- The JFC-PBG recognizes the Philippine government's efforts to fight corruption and introduce reforms but calls for further progress on
The document summarizes the economic opportunities in Hispanoamerica (Latin America excluding Brazil) over the next decade. It notes that the region has a large population and young workforce, is a major global producer of oil and copper, and has experienced increasing GDP and foreign direct investment. It positions PwC as being well-placed to advise companies on opportunities across key industries in the region like mining, energy, and financial services by leveraging its expertise and network across Hispanoamerica.
Similar to Dynamics of Latin American Incentives (Published October 2015) (20)
Dynamics of Latin American Incentives (Published October 2015)
1. October 2015 IPT Insider 7
Continued on page 8
CREDITS AND INCENTIVES
Public Incentives In Latin America:
A Review of Considerations and
Opportunities
Juan Gallardo, LL.M
Hickey & Associates, LLC
Miami, FL
Phone: (945) 319-4391
E-mail: juan.gallardo@hickeyandassociates.com
I. Introduction.
In our modern era – characterized as it is by prevailing
commercial norms with respect to the free flow of
transnational capital, investment,
and trade – it is foundational
that businesses may (and do)
go anywhere in the world that
present strategic and financial
advantages. Whether in the
pursuit of supply chain efficiency,
labor cost advantages, favorable
currency dynamics and tax
treatment, or access to new and
growing markets, multi-national
businesses (and even those that
may have historically been merely
domestic or regional in character)
now, more then ever before, must
consider global opportunities as
an essential part of their business-
related decision-making.
In this context then, it should not be at all surprising to
learn that comparative, data-based site selection and
the pursuit of related economic development incentives
keyed to capital investment and job creation are front-
burner considerations for enterprises of all sizes, across
the full range of economic and business endeavors. More
specifically, as labor costs and market uncertainty have
increased in other parts of the globe, the attention of many
American corporations (and indeed that of businesses
originating from Europe and Asia, as well) has begun to
focus even more intently on Latin America as a preferred
location for investment.
II. Broad Latin American Market
Considerations and Incentive Issues.
A. Positive General Business Characteristics
and Opportunities.
At the outset, we should acknowledge that Latin
America, despite its manifestly optimistic future,
still struggles with historical challenges that are
well-known tropes – a negative safety perception;
economic and political volatility; lack of reliable
demographic, labor and pricing information;
problems with scalability and sustainability; prone
to natural disasters; challenged on intellectual
protection and commercial legal protections; and
still in the process of maturation. Although many
of the foregoing descriptions still have enough
truth in them to remain viable clichés, almost all
of them are fading in the face of modernization,
growth and the cross-pollination of the global
economy.
Latin America understandably receives a lot of
attention fromAmerican businesses and investors
because of its geographic proximity to markets
in the United States and Canada
– a proximity which implies less
travel and shorter supply lines,
and a close time zone alignment
facilitating conference calls and
convenient business intercourse
– as well as favorable tax
regimes, investment incentives,
increasingly attractive business
climates, and cost effectiveness.
And it is these very positive
general business characteristics
and opportunities that we want to
emphasize here.
Consider the following:
• Size, Population, and Economic Criti-
cal Mass. As a region, measured by both
landmass and population (now in excess of
600,000,000), Latin America is roughly twice
the size of the United States – with vast
natural resources and a large, reasonably
well-educated workforce. And even leaving
international trade aside for the moment, with
a gross domestic product of roughly 9.2 trillion
dollars, Latin America has reached a critical
mass that makes it a strong and diversified
market in its own right. In turn, Latin Ameri-
ca’s new business maturity means that many
countries in the region have reliable and
competitive professional and service provid-
ers, an abundance of workers, domestic and
international business culture and increasing
economic stability, offering cultural affinity
and support in Spanish and Portuguese.
“More specifically, as labor
costs and market uncertainty
have increased in other parts
of the globe, the attention of
many American corporations
(and indeed that of business-
es originating from Europe
and Asia, as well) has begun
to focus even more intently on
Latin America as a preferred
location for investment.”
2. October 2015 IPT Insider 8
Continued on page 9
• Language. Although not English-speaking,
of course, and therefore still subject to a
modest linguistic barrier, when compared to
the Asia-Pacific region or Europe, the Middle
East, and Africa, Latin America is compara-
tively easy to manage with only two official
languages – Spanish and the closely related
Portuguese. In addition, as the United States
itself becomes increasingly English-Span-
ish bilingual, American businesses and ex-
ecutives are increasingly comfortable with
Spanish as a peer business language, which
makes Latin America easier to navigate.
• Communications and Efficiency. Although
Latin America has six time zones, they close-
ly align with those in the United States that
aids communication and efficiency, not only
with respect to front-end decision-making
but for on-going operational management as
well.
• Labor Pool, Costs and Quality. Given that
labor cost typically dominates the net value
of many international operations, weighing
far more than real estate, utilities or taxes,
corporations should carefully look at this
component, not only from the availability per-
spective, but also in consideration of cost,
skills, attrition, absenteeism, commute time,
pipeline, unionization and many other fac-
tors. Latin America, in general, offers a large
labor pool at very reasonable costs when
compared with the United States. Availability
and cost remain primary factors, but all the
other elements listed above are also relevant
and need to be considered when choosing a
location. Although you may find that minimum
wage in Latin America is a tiny fraction of that
in the United States, there may also be addi-
tional fringe costs, benefits and productivity
equivalents that need to be factored in. With
regards to qualifications, though educational
attainment in Latin America is continuing to
rise, additional training is typically required to
bring the region’s workers up to speed with
international standards. To that end, training
grants come in handy of course, and most
governments in the Latin American region
now offer specific training-related incentives
to corporations looking to establish or expand
their presence in the region.
• Tax Matters. Historically, import/export tax-
es have been a usually heavy burden in the
region, as national economies have been in-
clined to try to protect their respective local
industries. Nevertheless, some Latin Ameri-
can countries are now realizing that in order
to attract investment, they need to adopt the
right formulas to become and remain inter-
nationally competitive. Mexico for example,
over and above NAFTA, offers a number of
programs created to facilitate import/export
with the United States. Those offerings have
in turn attracted companies from all over the
world looking to manufacture in Mexico and
then export mainly to the United States. Such
programs, therefore, allow businesses to
take advantage of cheap and qualified labor,
while getting access to the largest market in
the world. Similarly, Colombia has been big in
the creation of foreign trade zones and Brazil
has created a special regime in Manaus to
attract these industries.
• Diversification of Business Risk. Finally,
as China, India and Russia all experience
significant economic, market and political un-
certainty, Latin America also provides clear
opportunities for diversification that allow
transnational business to spread its geopo-
litical risk and smooth potential disruptions in
a way that a concentration of operations in
Asia, for example, does not allow.
In light of these considerations, multinational
corporations evaluating expansion in Latin
America must incorporate these factors as
they think about the free movement of capital,
infrastructure, sustainable labor, inventory of real
estate, and the availability and value of public
incentives.
B. Latin American Incentives Generally.
Public incentives may not be the ultimate factor
when companies are considering expansion or
relocation, but in similar circumstances, they
are relevant and important elements – and may
ultimately prove to be the “icing on the cake”
for many projects that may tip the decision one
way or another. For that reason, it is worth
evaluating the opportunities for public incentives
in Latin America not only when a company is
establishing or expanding its presence there,
but also when there are merger and acquisition
transactions, consolidations, lease renewals
or process improvements, and when adopting
energy efficiency measures. A company may be
3. October 2015 IPT Insider 9
able to benefit from incentives for job creation
and capital investment, but also for job retention
and rights’ grandfathering.
(i) Process Recommendations.
In this regard, public incentives in Latin
America are typically granted to businesses
by federal and municipal governments and
less frequently by other jurisdictions. In order
to avoid transparency issues and leaks of
information that may create labor problems, it
is advisable for companies to consider looking
at public incentives early in the process,
researching potential statutory incentives
that may be granted in the countries and
states being considered. Once a short list
of potential locations are selected, and
before disclosing the project to the economic
development organizations and authorities,
companies need to let
them know they are
competing with other
locations, have them
sign non-disclosure
agreements, and make
clear that the project
needs to remain
confidential until the
company decides
to make a public
announcement on the
winner.
Keeping this competitive edge throughout
the process ensures enough leverage to get
the best possible incentives package. It is
advisable to always have at least two different
countries competing. Once the company
makes a final decision, it should try to sign an
incentives agreement, which is unfortunately
not necessarily typical in the region. This is
important documentation not only because
experienced American companies will expect
it, but also because authorities do change,
and the next government may not otherwise
view the offered public incentives as a
continuing obligation unless they are clearly
spelled in an agreement.
Perhaps it goes without saying, but one
thing to avoid at all costs is the shadow of
corruption. This is true not only for domestic
purposes and avoiding liability under the
FCPA, but processes also need to be fully
transparent in a region that has struggled
(but is working hard) to overcome a historical
pattern of political corruption.
Finally, companies need to pay a lot of
attention to the aftercare of the public
incentives. It is typical for projects to span out
several years, because of hiring and capital
investment timelines. It may happen that the
incentives the company was granted do not
kick in for months, or even years. Taking
care of the management and compliance is
therefore essential not only to capture the full
value of the incentives granted, but also to
avoid “claw-backs” and bad press.
(ii) Significant Distinctions.
Bear in mind too that the incentives
process in Latin America is often subject to
fundamental structural differences vis-a-vis
the United States. While incentives in the
United States typically do not have
formal federal oversight and there is
a strong competition among states
and counties (with a large number
of mature economic development
organizations aggressively
competing to attract investment to
their own cities or counties), in Latin
America public incentives do have
strong federal and state oversight
and cities do not routinely compete
against each other.
In addition, in the United States, a lot
of attention today is paid to the return
on investment spawned by the granted
public incentives, whereas that type of raw
economic pragmatism is unusual in Latin
America. Rather, up until now, the incentive
decision-making process for governments
and economic development organizations
in Latin America is more typically a political
decision. Nevertheless, if the incentives
granted do not correspond with the promised
investment and jobs promised by the
companies, authorities may come back and
create substantial problems, particularly if
there is a change of political party.
Thus, following a correct process allows
companies to obtain attractive incentives in Latin
America established to attract and retain job
creators and capital investment. Not only do such
incentives help the bottom line with tax rebates,
Continued on page 10
“In addition, in the United
States, a lot of attention to-
day is paid to the return on
investment spawned by the
granted public incentives,
whereas that type of raw
economic pragmatism is
unusual in Latin America.”
4. October 2015 IPT Insider 10
exemptions and training grants, but they also help
by expediting licenses and permits in a region
where bureaucracy can be a very heavy burden.
III. Market-Specific Opportunities, Issues, &
Considerations.
Although many of the macro considerations discussed
above are largely and broadly relevant across Latin
America as a whole, it is also important to understand the
unique context represented by each national jurisdiction.
With that in mind, some salient points on the principal
Latin American countries follow below.
A. Brazil
With a population of 200,000,000, and econom-
ic production equal to almost one-third of the re-
gional gross domestic product, Brazil has been
a dynamic economic engine for more than a de-
cade and remains instrumental in attracting pos-
itive investment attention to the region. Its vast
natural resources have made it a commodities
powerhouse that has helped feed the impressive
growth of China for many years, while simulta-
neously consolidating an internal market that has
lifted tens of millions of people out of poverty and
into the middle class.
Yet from an incentives perspective, Brazil’s im-
pressive growth - even during the financial crisis
- largely discouraged the country from aggres-
sively implementing incentive policies because
the objective need to offer many public incentives
to attract investment and job creation was ob-
scured. But that is now changing.
Following China’s deceleration and the concom-
itant global commodity price depression, Brazil
has dipped into recession. In addition, a major
corruption scandal at the national oil and gas
corporation has compounded the crisis, result-
ing in currency devaluation and other economic
ailments. In response, the sitting government
and recently reelected are now taking important
strategic measures to regain the trust of the in-
vestment world, and Brazil is increasingly open
to offering substantial public incentives in order
to attract and retain investment and to spur job
creation.
More specifically, incentives granted based on in-
vestment value, job creation and other relevant
matters are now available in Brazil at all levels of
government, and are particularly valuable at the
municipal and federal levels.
(i) Municipal Incentives. Municipal incentives
typically relate to reductions in Service (“ISS”)
and Property (“IPTU”) Taxes that may be
granted as part of negotiated incentive pack-
ages. In addition, some municipalities may
be willing to make grants of land to invest-
ing businesses, particularly in consideration
of more valuable and strategically important
projects.
(ii) State Incentives. At the state level, the gov-
ernments typically grant incentives on the ba-
sis of Value Added Tax (“ICMS”).
(iii) Federal Incentives. Federal incentives en-
courage focused R&D in electronics (such
as “PADIS” – a program for the development
of the semiconductor and display industries;
“PADTV” – a program for the development of
the technology industry for equipment relat-
ed to digital television) that may exempt the
investing company from certain otherwise
obligatory federal tax contributions, such as
“PIS” (contribution to Brazil’s social integra-
tion program) and “CONFINS” (contribution
to Brazil’s social security financing). Other
incentives are available as well as on the
acquisition of raw materials, goods and soft-
ware used in the manufacturing and research
activities. Further federal exemptions may
apply to sale of manufactured products.
In addition, other federal incentives apply for
modernizing of infrastructure (“REIDI” – a
special incentive regime for the development
of infrastructure; “REPORTO” – tax rebates to
incentive modernizing and amplifying Brazil’s
port structure and encourage exporting; and
“REMICEX” – a special tax regime for export
packaging).
Brazil also offers incentives targeting specific
industries such as oil and gas (“REPENC” – a
special incentive regime for the development
of oil industry infrastructure in Brazil’s north,
northeast and central-west); IT services
(“REPES” – a special tax regime for the
export of information technology services);
aeronautics (“RETAERO” – a special regime
for the Brazilian aeronautics industry); and
others for targeting specific regions such
as the Amazon Region (“SUDAM”) and
Northeastern Brazil (“SUDENE”).
Continued on page 11
5. October 2015 IPT Insider 11
In the aggregate, these incentives are persuasive in
helping to offset the perception that Brazil was over-
priced and not a business friendly economy.
B. Chile
In Chile, although not as broadly crafted and far
reaching as the Brazilian incentives, tax incen-
tives for research and development do allow up to
a thirty-five percent (35%) write off of the invest-
ment in R&D contracts entered into with research
centers accredited by the Chilean Economic De-
velopment Agency, with the remaining sixty-five
percent (65%) being tax deductible.
In addition, investment and venture capital fund-
ing are available at certain Opportunity Zones,
which are located in more remote or low income
regions of the country. Chile also offers certain
training rebates and subsidized worker training
for three months for laid off employees.
C. Colombia
Colombia offers a Free Trade Zone regime that
provides such benefits as a single fifteen percent
(15%) income tax rate, with no customs taxes,
and VAT exemptions for raw materials, inputs and
finished goods, and more. In addition, Colombia
also offers tax exemptions in specific sectors that
allow companies to pay 0% instead of the gener-
al 25% tax. These sectors include hotel services
provided in new, remodeled or expanded hotels,
ecotourism, publishing companies, sawmills,
software development and more. Investment
from income taxpayers in qualified technological
research and development projects are eligible to
deduct one hundred seventy-five percent (175%)
of the amount invested from their net income, for
up to forty percent (40%) of taxable income.
D. Peru
Peru refunds the VAT that has been paid in the
import and/or local acquisition, transactions of
capital goods, services and construction con-
tracts during pre-operative stages of projects,
investing in infrastructure and public services.
Similar incentives are offered for projects in the
Amazon region and those dealing with mining,
hydropower, agriculture and aquaculture.
Peru also provides incentives that allow produc-
er-exporter companies to recover all or part of
customs duties that have affected the import of
raw materials, inputs, intermediate products and
more. And as in other nations, special designat-
ed geographical areas (“CETICOs” - exportation
centers, transformation, industry, commercial-
ization and services) qualify as primary customs
areas of special treatment that are exempt from
income tax, general sales tax, and any tax rate
input or contribution from both the local and na-
tional governments. CETICOs may manufacture,
produce, assemble, store, distribute, repair, or
provide services such as packaging, labeling and
classification of goods inside the zone.
E. Mexico
Mexico is the second largest economy in Latin
America. With 120,000,000 people and a GDP
larger than that of either Canada or Spain, Mex-
ico has been developing incentive programs for
decades, attracting first investment and job cre-
ation from the United States and now from the
rest of the world. Mexico offers:
• Important federal incentives for research and
development, and importing and exporting
certain goods;
• Aggressive programs to incentivize software
industries; and
• Since the recent reforms in energy and com-
munications, companies can look at investing
in these industries as well.
Mexicanstatesmayalsooffertheirownincentives,
such as temporary exemption of state taxes and
duties, payroll tax exemptions, special incentives
for research and development projects, and
temporary reductions of public lighting fees.
IV. Conclusion.
Reasonable economic assumptions suggest that Latin
America will continue growing for the foreseeable
decades, and the region will continue to serve as a
primary destination for inbound global investment.
Consequently, knowing how to successfully navigate
the incentives processes and avoiding corruption and
bureaucracy, provides a competitive edge to corporations
looking at establishing or growing their presence in this
exciting region.