Corporate strategies for FDI in the context of Latin America's New Economic Model

摘要

The NEM in Latin America radically altered foreign direct investment inflows to the region. Previously restrictive national policies became ones that facilitated foreign direct investment (FDI) in the context of new business opportunities. Transnational corporations (TNCs) took a new look at the region in the context of their evolving corporate strategies, examples being efficiency-seeking corporate strategies in the automotive (Mexico) and the apparel industry (Caribbean Basin) and the market access strategy for services in the telecommunications and electrical energy industries (Brazil). Two interrelated problems arose: (a) TNC objectives were often attained but those linked to national development goals often were not, and (b) national policies did not channel FDI to priority development activities.