Latin American companies have long been overlooked in the global growth market. However, as this report from Ernst & Young
states, within the next few years Latin American companies’ are expected to expand significantly outside their borders. This statement is based on a quantitative survey of 600 business executives in Latin America during November and December 2012, and qualitative interviews conducted between January and February 2013.
The survey gives a refreshing view from Latin America companies’ strategies in outbound investment, where the Asian market is a big attraction. Among the respondents, 32% in Columbia and 26 % in Chile are currently conducting a significant amount of business with China.
- Reaching new customers and increasing sales growth are the top benefits expected from international expansion across all types of new markets (62%)
- Trade and sales with China is expected to grow with 20% over the next three years
- Fifty-four percent of the respondents identified reliable business partners as one of the top challenges when expanding internationally
- Latin American executives identified their work force quality as their greatest strength (52%)