Fdi in Latin America

8/8/2019 Fdi in Latin America

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Submitted by

SreenathKarthik Sindhuri

Akhil T.UManivannan.R

Chinnu ElizabethKrithi Rajadurai



Foreign direct investment in 2009 was 77 billion

dollars.

Brazil was the top reci pient of FDI with 26 billion

dollars.

Chile came second with 12.7 billion dollars.

Mexico came third with 11.4 billion dollars.



USA is the largest investor in LatinAmerica(37%) followed by S pain(9%) and

Canada(7%).

Agribusiness, mining and petr oleum are the

priority areas for all the com panies. Investment in these sectors will have access to

edible oil, pulses, wheat, sugar, minerals and

crude oil which are going to be needed more andmore by the developed markets.



Country FDI

Brazil 25.95Chile 12.70

Mexico 11.42

Colombia 7.20

Argentina 4.90

Peru 4.76

DominicanRe public 2.16

Panama 1.77

Costa Rica 1.32

Uruguay 1.14

Guatemala 0.57

Honduras 0.50

Nicaragua 0.43

El Salvador 0.43

Bolivia 0.42

Ecuador 0.31

Paraguay 0.18

Haiti 0.02

Venezuela -3.20

FDI OF VARIOUS LATIN AMERICAN COUNTRIES



` The reason for increase in FDI in Brazil is due to

the f act that at the time of its policy formulation,

the Brazilian FDI regime didn¶t discriminate

investments.` Tariff s and non tariff restrictions on im ports were

liberalized.



Mexico is the populous Latin American nation.

It possesses an open trade regime thanks to the North American Free Trade Agreement (NAFTA).

Foreign direct investment in Mexico increased by 21% in the year 2007.

It amounted to US$23.2 billion or ¼15.7 billion.

Most of the FDI came f r om USA followed byHolland and S pain.

The year 2008 has seen a considerable dr op in theFDI in Mexico because of the recession in theUnited States since Mexico is largely de pendenton USA.



` Prime among them was the countrywideim plementation of privatization policies and

pr ograms of debt conversion

` Some other im portant policy changes that were

intr oduced are trade able sector liberalization re pealof restrictive FDI regulations regarding issues like

pr of it re patriation, need for prior authorization for

investments and various sectoral regulations.

` Fairly good per formance of various macr oeconomic

stabilization measures for the Mexican economy

boosted the conf idence of foreign com panies.



Argentina was the third biggest reci pient of the FDI in Latin America in 1997.

Argentina's foreign direct investment f low recorded asubstantial increment in the 1990 to 1996 time period.

The annual average for this period stood at US$2.8

billion. This was 4 times greater than the com parablef igure for the 1980s. Some f actors contributed to the ra pid increase in FDI

inf lows into Argentina in the 1990s.Mercosur membershi p

Macr oeconomic stability S pecial incentive scheme for foreign investment Incentives for the automotive sector

In 1990, Argentina's FDI inf low accounted for 22%of Latin America's foreign investment inf low.



` The regulation and policy changes that f acilitated the increasein FDI inf lows are

` The policy changes primarily revolved r ound the partici pation

of private investment in an economy's natural resource sector

which attracts huge inf lows f r om foreign business f irms.

` The massive u psurge in commodity prices led some Latin

American governments to go in for a modif ication of their

prevalent tax regimes.

` Formulated newly devised investment pr omotion regimes

targeted at attracting investments for industrial activities



` The Brazilian economy off ers a convenient

investment envir onment for our com pany because

of the following f actors.

Brazilian economy is gr owing on a large and

continuous basis as com pared to other developing markets in Latin America.

The huge market potential backed with the

purchasing power of the people has attracted the

investors f r om all over the world.

Further the Brazilian markets diff ers f r om the

other emerging markets in the f act that it is a

f ull blown democracy.



The macr o economic f actors such as the political

and legal envir onment has been very stable as when

com pared to other Latin American countries.

The other Latin American countries have been

considered to be more risky when com pared withBrazil.

` Hence Brazil has been established as a destined

location for the foreign com panies



Thank U

Fdi in Latin America

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