IJMB Journal – Abstracts
International Journal of Management and Business
IJMB Volume III, Issue 2
Firm Strategy in a Polarized Latin American Region
George Washington University, Washington, DC
The recent financial crisis has exposed an increasingly polarized global economic order: stagnation in advanced developed economies and growth and rising affluence in emerging countries. Global polarization is shaping the regional order, in particular in Latin America. A group of economies, led by Brazil is experiencing sustainable economic growth and strong domestic markets. A second group, led by Mexico, is stagnating economically and facing the challenges of violence and social instability unleashed by criminal organizations. The most remarkable feature of the polarization in Latin America is its rapid development – within the last five to seven years. Polarization creates structural economic and market differences in the two regional hubs. This paper explores the impact of regional polarization on macroeconomic performance, foreign direct investment, and global competitiveness of countries in the two hubs and speculates on how firms’ strategies may adjust to these different contexts.
Keywords: Regional Strategy, International Macroeconomic Context, Latin America.