2. . What are the major business industry opportunities and Political and
Economic challenges in Latin America?
Latin America's economy is composed of 2 main economic sectors: agriculture and mining.
Latin America has giant areas of land that are made in minerals and different raw materials.
In addition, Latin America' tropical and temperate climate is right for growing a good type of
agricultural products. Latin America is not only geographically close but is rich in natural
resources, has a relatively young population and possesses political institutions that are
becoming increasingly democratic and stable. The conditions appear to be conducive for
ample trade and international investment opportunities.
Major industry Opportunity in Latin America
The 5 largest Latin American economies in terms of value in 2018 were Brazil, Mexico,
Argentina, South American nation and Chile, and GDP growth projections for Latin America
for 2021 show these countries ought to expertise positive growth. Latin America' economy
consists of two main economic sectors: agriculture and mining. Latin America has giant areas
of land that are made in minerals associated different raw materials. Also, the tropical and
temperate climates of Latin America create it ideal for growing a spread of agricultural
products.
Konfío, a fintech trademark owned by the Mexican company Red friend DAL, was found to be
the quickest growing business in Latin America. supported its compound annual rate (CAGR),
Konfío' revenue grew 185.7 p.c per annum between 2015 and 2018.
Coderhouse, an edutech platform primarily based in Argentina, hierarchic second with a
CAGR of 155.4 percent. Another Mexican company, the money management platform
ComparaGuru.com, created it third with a CAGR of 109 percent.
Political Challenges:
Most occupant economies have suffered long political unrest inflicting an unstable political
climate moving growth and development. Challenges like violence, organized crime,
corruption, civil wars or conflicts, discrimination have diode to unstable political instability
within the region. Political unrest and public protests in Venezuela, Ecuador, Honduras,
Guatemala, Haiti, Chile, Mexico, Brazil, and Argentina have led to unstable government
establishments in these countries. Corruption has been a serious concern in Latin America.
eleven presidents are forced from workplace thanks to corruption scandals in the region .
Economic Challenges:
Functioning establishments are needed to safeguard economies. in line with (Chafuen, 2020),
a weak rule of law is that the biggest economic downside of Latin America. With a passing
grade of vi out of 10, Chile, Uruguay, and Costa Rica are the sole countries that passed. A
stronger rule of law is required for an economy to prosper. Also, a high level of financial gain
inequality, high illiteracy level high state is among the economic challenges of Latin American
economies. Another worry challenge that Latin America is facing is rising poverty, the
Economic Commission for Latin America, and also the Caribbean (ECLAC) projection calculable
that the intense financial condition rate was 12.5% in 2020, whereas 33.7% of the population
was suffering from poverty. It ought to likewise be aforesaid that occupant nations are
ordinarily in addition dynamic in territorial associations and institutions – just like the
Organization of yank States, the Inter-American Development Bank, so forth – in order that
they can participate squarely and decide to go against U.S. hegemonism. within the Latin
American district, these nations at the start started a cycle of participation and reconciliation
and later settled completely different sub-local associations -, for example, Mercosur
(Mercado Común del Sur-Mercado Comum do Sul) and Alianza del Pacífico (Mexico,
Colombia, Chile and Peru) – to assist out different areas of the globe and shake off the
appalling that means of "America' patio". settled within the Western Hemisphere, wherever
the notable major power is available, occupant nations have for a few time been deeply
plagued by the us in legislative issues, monetary aspects, society and culture.
CITATIONS
Chafuen, A. (2020). The Economic Debacle in Latin America. Forbes. Retrieved from
https://www.forbes.com/sites/alejandrochafuen/2020/01/19/the-economic-debacle-in-latinamerica/?sh=42e8cb9b5c73
https://www.statista.com/statistics/1112886/fastest-growing-companies-latin-america/
https://ksusentinel.com/2021/05/06/latin-america-e-commerce-logistics-market-surge-prominent-growth-by2028-asendia-management-bpost-brt-corriere-espresso-db-schenker-dhl-express-direct-link-dpd-group-fedexexpress-gls-parcel/
https://www.stlouisfed.org/publications/regional-economist/july-2014/business-opportunities-and