The evolution of the “Multilatinas”
Moris Beracha.- The Latin American multinational corporations, so called “multilatinas”, have evolved in such a way that in the past years they have crossed borders that always seemed insurmountable. The companies have taken advantage of the profits obtained in their markets to invest in other countries. Some years ago I had the opportunity of participating in a forum on “multilatinas”, organized by the American-Spanish Chamber of Commerce, where I had the privilege of sharing my business vision in this regard.
At the forum I was able to share my personal experience and experiences at the head of some companies, integrated in the Moris Beracha Group, that can be considered as “multilatinas”. From my point of view, a “multilatina” is characterized by being a leader in the sector, innovative in its products and solutions. On the other hand, analyzing the latest publication of the Latin American Program of the Wilson Center, “The explosion of Latin American foreign investment: trends and recent evolution of multilatinas” can also a lot of internal and external factors can be established to facilitate the development of these companies, their geographical, sectoral and structural characteristics, determining their possibilities of expansion.
The “multilatinas” have increased their investment abroad long before the 1990s. However, it was from 2000 when volumes of foreign investment tripled. In the past three years investment from Latin America has exceeded $ 350 billion. This increase has been fostered by political stability, proper management of economies, favorable financial conditions and the promotion of regional integration.
The Latin American countries that invest the most are Brazil (41.5%), Mexico (23%) and Chile (20.3%) and, with a smaller percentage but with a significant volume of investment, are Argentina (5.9%), Colombia ) and Venezuela (3.7%). Brazil’s financial management model makes it compete in the European market, while Mexico accounts for 57% of the US Latin American market. On the other hand, Chile is the first Latin American country to appear in the Doing Business ranking, as it has been forced to expand its investments due to its limited number of consumers.
The “multilatinas” still have many challenges to face, competing with large companies from developed economies in the United States, Europe and Asia. In addition, the “multilatinas” share similar characteristics that their competitors do not have in developed countries and it is that they are mostly wholly or partly owned by the state and follow a pattern of exploiting natural resources.
The future of the “multilatinas” is subject to prioritizing the development of their capabilities, improving their productivity and boosting innovation, so they can compete in more advanced markets. My business vision is precisely that we must distinguish ourselves in being leaders and innovators of the market to be able to compete in the world’s largest economies.
And you, how do you think “multilatinas” should improve?
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