* Latin America can be a confusing region for today’s multinational executives. It now boasts sound economic growth underpinned by a strong commodity sector, but politics, regulatory constraints, and infrastructure shortcomings continue to be worries.
* Although the region isn’t growing as fast as some other emerging markets, such as China and India, it does have high-growth industries. Commodities and financial services are particularly attractive.
* Given the suboptimal structure of certain sectors, businesses should consider restructuring and consolidating them. There are also export opportunities, such as forwardly integrating into higher-value added products.
* Local context and knowledge make all the difference when companies decide whether to invest in Latin America. Higher risks call for higher returns, and investments must be evaluated carefully.
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