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Latin America: Open for Business

10/20/2014

If a poll were taken to identify regions ripe for global growth, Latin America would likely be voted “Most Likely to Succeed.”

Latin America is rapidly gaining attention for sustained economic growth, a burgeoning middle class, and considerable natural resources. With more than 600 million people, the region presents both remarkable opportunity and significant challenge.

Though the business opportunities are widely touted, LatAm can’t be summed up crisply. In The Two Latin Americas (Wall Street Journal, January 3, 2014), essayist David Luhnow writes:

There are two Latin Americas right now. 
THE FIRST is a bloc of countries — including Brazil, Argentina and Venezuela — that faces the Atlantic Ocean, mistrusts globalization and gives the state a large role in the economy.

map graphic of Latin America
THE SECOND — made up of countries that face the Pacific, such as Mexico, Peru,
Chile and Colombia — embraces free trade and free markets.

According to estimates from Morgan Stanley for 2014, these two Latin Americas face vastly different prospects for growth. The Pacific Alliance trade bloc — consisting of Mexico, Colombia, Peru and Chile — is poised to grow an average of 4.25 percent. And the Atlantic group of Venezuela, Brazil and Argentina is projected to grow just 2.5 percent.

Whether the growth lives up to projections, LatAm is a hot topic. And it ranks high in global competitiveness. The region holds a unique set of considerations for companies expanding into it. Industry experts name such issues as: compliance; lengthy processing; uncertainty about local customs, laws and regulations; payroll and compensation processes; assignee assessment; security; infrastructure complications; and a lack of mobility proficiency.

That’s where those of us with expertise in relocation and global assignments come in. We apply what we’ve learned in other emerging areas to Latin America. Our experts can support you and your partners as you build a global workforce in the southern hemisphere. In a region that is “most likely to succeed,” we’ll help make your success a certainty.

Janelle PiatkowskiJanelle Piatkowski, President and CEO, Cornerstone Relocation Group

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